Jim Cramer shocked the world on Monday when he went on NBC’s “Today Show” and told viewers that any money they anticipate needing in the next five years should be removed from the stock market immediately.

Cramer caught a lot of negative comments for making that call. Some said what he did was like yelling “Fire!” in a crowded theater. But Cramer says there could be a fire, and it’s his job to warn investors and help protect them from future losses.

The market is experience things it has never seen before. Cramer is smart enough and experienced enough to know that it’s time to be defensive and protect assets. You don’t want to miss what Cramer says going forward. He will surely have insight you will not find anywhere else.

Recently, Cramer found opportunity in stocks that pay dividends, stocks that benefit from the commercial paper plan and former giants becoming mid-caps. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on CNBC and his RealMoney blog posts (these blog post links require a RealMoney subscription).

Cramer’s Dividend Darlings: Recently, Cramer recommended a few dividend plays. On last Thursday’s “Stop Trading!” segment, Cramer told viewers: “McDonald’s (MCD) just raised its dividend, and CEO Jim Skinner wouldn’t do that if he planned to cut the payout in the near future.” Cramer’s Dividend Darlings include NYSE Euronext (NYX).

Cramer’s Money Machine Stocks: Cramer says the best way to make money in a bear market is with stocks that pay big dividends. On last Thursday’s “Mad Money” TV show, Cramer told viewers: “While they provide enormous yields, the stocks have taken a beating in recent weeks.” Cramer’s Money Machine Stocks include Permian Basin Royalty (PBT) and Kinder Morgan Energy (KMP).

Cramer’s Former Giants Becoming Mid-Caps: Cramer says some former giants becoming mid-caps are worth watching. In an Oct. 2 blog post, Cramer wrote: “What's amazing is that these stocks have gone from growth to value in record time (I am not including the ferts, which to me are still overvalued). But the value guys, perhaps because they lost so much on the financials, seem like they are too out of cash to do any buying.” Cramer’s Former Giants Becoming Mid-Caps include Deere (DE) and Foster Wheeler (FWLT).

Cramer’s Stocks Wrecked by Credit Default Swaps: The credit default swap market is wrecking a number of companies. In an Oct. 9 blog post, Cramer wrote: “Just wait until they go after Citigroup (C)! This end-of-capitalism-as-we-know-it is extraordinary.” Cramer’s Stocks Wrecked by Credit Default Swaps include Prudential (PRU) and XL Capital (XL).

Cramer’s Stocks That Benefit From the Commercial Paper Plan: Cramer says industrial companies will benefit from the new commercial paper plan. In an Oct. 7, blog post, Cramer wrote: “As an old commercial paper seller, I can tell you that it is ridiculous that the companies with the best balance sheets can't access this market. That's why I think it is important to see that the only paper the Fed is buying is from top-rated companies.” Cramer’s Stocks That Benefit From the Commercial Paper Plan include Honeywell (HON) and United Technologies (UTX).
Cramer’s Stocks That Signal a Rate Cut: Do certain stocks signal a rate cut with how they trade? On last Friday’s “Stop Trading!” segment, Cramer told viewers: “These are stocks that go up when you think that the Fed is not going to do anything. These are trading down as if there's going to be an imminent rate cut by the time I'm done with ‘Stop Trading!’” Cramer’s Stocks That Signal a Rate Cut include Coca-Cola (KO).

(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned Deere and Foster Wheeler for his Action Alerts PLUS charitable trust.)



Posted on Oct. 9, 2008