7-17-08

Jim Cramer has been critical of Securities and Exchange Commission Commissioner Christopher Cox all week, since news broke that the SEC is going to start enforcing regulations against the practice of naked short-selling on the financial stocks.

Cramer was shocked and disgusted by this news because naked short-selling is already illegal on any stock. He knows that investors can’t rely on the government to protect them in the market. However, regardless of what the government is doing, Cramer has the vast market knowledge and experience to steer investors towards winning ideas.

Recently, Cramer found opportunity in companies with strong balance sheets, natural gas stocks and wind stocks. 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 Nat Gas Stocks With Numbers Too Low: Cramer thinks that Wall Street is underestimating the numbers for the natural gas complex. In a July 13 blog post, he wrote: “To me, the only groups I know that can have numbers way too low are the natural gas companies and those that drill for them, plus the offshore drillers. That's it.” Cramer’s Nat Gas Stocks With Numbers Too Low include Nabors (NBR) and Halliburton (HAL).

Cramer’s Problem Stocks: Cramer thinks a number of stocks have entered the danger zone. In a July 15 blog post, he wrote: “The problem is that the dire stocks, the ones I have listed, are so numerous and so concentrated with so little hope for rescue that it is hard to imagine anything but more downside for these stocks and therefore more downside for the rest of the market, simply because they are so glaring, are owned by so many mutual funds and have so many roles to play in the real economy.” Cramer’s Problem Stocks include Fannie Mae (FNM) and Freddie Mac (FRE).

Cramer’s Bad Bank Stocks: Cramer believes that a number of bank stocks should be avoided by investors at all costs. On Monday’s “Mad Money” TV show, Cramer told viewers: “I don’t believe anything remotely positive has happened yet for the banking industry. The many plans, frameworks and blueprints that have been espoused don't change a thing.” Cramer’s Bad Bank Stocks include Citigroup (C) and Washington Mutual (WM).

Cramer’s Stocks With Balance Sheets That Matter: Cramer thinks that once the banking crisis blows over, companies with strong balance sheets will start to matter to the market. In a July 16 blog post, he wrote: “Do corporate balance sheets matter? One of the things that you will see in the next few weeks is everyday industrial companies brimming with cash. You are going to see buybacks of huge proportions.” Cramer’s Stocks With Balance Sheets That Matter include Parker Hannifin (PH) and Johnson & Johnson (JNJ).

Cramer’s Windex Revisited: Cramer took a fresh look at his “Windex” portfolio. On Tuesday’s “Mad Money” TV show, Cramer told viewers: “The poor performance of the Wind-ex stocks has nothing to do with the wind power business, but rather with the industrial components of all of the companies.” Cramer’s Windex Revisited includes Quanta Services (PWR).

Cramer’s Energy Money Rotation Plays: Cramer has some ideas on what sectors and stocks will see new money flows as investors rotate out of energy plays. In a July 17 blog post, he wrote: “So with the gigantic shift out of anything oil and gas, we are searching for places to put money beyond financials.” Cramer’s Energy Money Rotation Plays include TD Ameritrade (AMTD) and Research In Motion (RIMM).

Cramer’s Hammered Industrial Stocks: Recently, the industrial sector has come under heavy selling pressure. In a July 15 blog post, Cramer wrote: “I believe you have to go back to the notion that until May we didn't see a worldwide slowdown. The market anticipated it and started selling off all of the industrials, but this market is very unforgiving, and the same reason why people had already sold Eaton down 10 was another good reason to sell it down another 10.” Check out Cramer’s Hammered Industrial Stocks.

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