By Stockpickr Staff
Updated at 2:31 p.m. EDT on March 26, 2009
Jim Cramer sees lots of good things happening on Wall Street. Some of the positives include tech inventories, which have been worked off, new equity offerings and a possible bottom forming in the housing sector.
Cramer also likes the fact that analysts’ expectations are too low for many companies. On Tuesday, he pointed to this fact when Walgreen (WAG) and Tiffany (TIF) surged higher after topping Wall Street estimates but still reporting disappointing numbers. Cramer believes that when estimates are too low, you can get a floor, or bottom, in the stock market.
Recently, he found opportunity in companies that can raise their dividend, 10 stocks to watch if the rally is real and a few stocks due for a selloff. 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 require a RealMoney subscription).
Cramer’s Trust in Dividend Stocks: Cramer wants investors to focus on companies that have the ability to raise their dividend. On Wednesday’s “Mad Money” episode, he told viewers that Chevron (CVX) has a 37% dividend yield, a great balance sheet, loads of cash, little debt and a long history of raising its dividend. Cramer’s Trust in Dividend Stocks include Procter & Gamble (PG) and Air Products (ADP).
On Friday afternoon, Chevron was losing $1.21, or 1.7% $68.96.
Cramer’s 10 Stocks to Watch: Cramer thinks 10 key stocks are worth watching to determine if the market rally is for real. On Monday’s “Mad Money” episode, he told viewers: “Procter & Gamble’s (PG) shares, which should be trading down at the bottom of the economic cycle, are going up, signaling that people are actually willing to pay up for the stock.” Cramer’s 10 Stocks to Watch include Bank of America (BAC) and General Electric (GE).
Procter & Gamble was trading down 23 cents, or 0.5%, at $48.53 on Friday afternoon.
Cramer’s Signs of Hope: Cramer sees signs of hope for the stock market. On Monday’s “Stop Trading!” segment, he told viewers that a lot of tech companies are reporting better-than-expected earnings, such as Oracle (ORCL) and Xilinx (XLNX). Cramer’s Signs of Hope include Salesforce.com (CRM) and Janus Capital (JNS).
Oracle traded down 67 cents, or 3.6%, at $18.01 on Friday afternoon, whicle Xilinx was down 83 cents, or 4.1%, at $19.55.
Cramer’s Stocks Due for a Selloff: Cramer believes the market is due for a selloff. In a March 25 blog post, he wrote: “Let's wait before we commit new capital. It's just too dicey. We are going up on information that reveals, endlessly, that we are not going to get a depression. Now we need some info that we are departing a recession. We don't have it yet, so take profits.” Cramer’s Stocks Due for a Selloff include Apple (AAPL) and Google (GOOG).
Apple was down 3.10, or 2.8%, at $106.77. Google was trading down $6.06, or 1.7%, at $347.23.
Cramer’s Skeptical of Oil Drillers: Should investors avoid the oil drilling sector? Cramer thinks so. In a March 24 blog post he wrote: “A price of $50, which only some of the oil companies believe in, isn't enough to reignite a lot of the abandoned drilling campaigns and the meager natural gas price, coupled with the new imports of liquefied natural gas, make that onshore drilling opportunity that had been booming look very shut down.” Cramer’s Skeptical of Oil Drillers portfolio includes Transocean (RIG) and Schlumberger (SLB).
On Friday afternoon, Transocean was losing $2.72, or 4.3%, at $61.26. Schlumberger was losing $2.31, or 4.7%, to $43.41.
Cramer’s Good Signs in Equity Offerings: Cramer is happy to see equity offerings returning to the capital markets. In a March 26 blog post, he wrote: “These are real deals, good secondaries that might work. They are a sign of health. They are a sign that people want to take a little risk.” Cramer’s Good Signs in Equity Offerings include Teekay (TK) and Buckeye Partners (BPL).
Teekay was down $1.03, or 6.3%, at $15.46 on Friday afternoon, while Buckeye was down 10 cents, or 0.3%, at $35.80.
(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned Chevron and General Electric for his Action Alerts PLUS charitable trust.)
Who’s on Stockpickr Answers? David Peltier will be on Stockpickr Answers on March 27 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.
P.S. Where is Cramer putting his own money? Take a free peek at his personal portfolio to see all his buys and sells by clicking here. When you do, Jim will also send you exclusive email alerts telling you everything he’s about to add to or shed from his Action Alerts PLUS portfolio -- before he makes his trade.
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