Investment

» PEIC - Defensive Oil Plays - April 2

Jim Cramer's Mad Money In-Depth Stock Picks, April 2

Miriam Metzinger submits: Stocks discussed in the in-depth session of Jim Cramer's Mad Money TV program, Monday April 2.
Iran Awry: Abbott Laboratories (ABT), Kinder Morgan Energy Partners (KMP), Yamana Gold (AUY)

With the world focused on the standoff with Iran, Cramer discussed his "Iran Awry" portfolio which would protect investors in case of a crisis. Since higher oil prices lead to recession, Cramer recommends defensive stocks such as drugs, and picks ABT since it consistently reaches its 52-week high, grows at 14% and sells at only 16 times earnings. Cramer also likes KMP, an oil company which won't get cut off by Iran, which yields a high 6.3% dividend. KMP also has a large natual gas pipe, and Cramer notes that "distribution for natural gas will be boosted if Iran does something nutty." He likes the fact that KMP distributes profits. Since gold "soars" when there is military conflict, Cramer suggests his favorite gold, AUY which is growing while other gold companies are stalled. Although he has been behind AUY for a long time, Cramer feels it has more room to run. Cramer would put 25% of his budget in each stock and 25% into cash to buy good stocks which will get hit if there is further conflict with Iran. In this scenario, he would not purchase a stock with a yield less than 5%.

First Data (FDC), Mastercard (MA)

Cramer thinks the deal that will allow Kohlberg Kravis Roberts to purchase FDC at $34 a share will benefit MA which "should easily be worth $130 to $140 a share. Mastercard is masquerading as a $106 stock." While FDC is not well run, Cramer thinks KKR's real plan is to "place a secular bet on plastic... and the ultimate plastic play is Mastercard." While MA has gone up, Cramer says it should never have been priced so low, its merchant processing business is "an irreplaceable franchise," it is a strong China and Latin America play, and has "true organic revenue and profit growth."

Mad Mail: Microsoft (MSFT), Florida Rock Industries (FRK), Vulcan Materials (VMC)

A caller asked if MSFT's CEO, Steve Ballmer, should be the next inductee to Cramer's Wall of Shame, and Cramer responded that while MSFT is a "challenged situation," Ballmer is doing his best and the entire industry has peaked. He told another mailer FRK is going to trade with VMC; " I think Vulcan Materials is going to keep going higher, because there are a lot of roads that need aggregate."

-- posted by PEIC

» nasmaster999 - Cramer harassing Erin Burnett on "Stop Trading" segment

In response to Cramer harassing Erin Burnett on "Stop Trading" segment posted by Kirk:

Did this actually happen or is this an April Fool's
joke? Just wondering how I can't find more info on this...

-- posted by nasmaster999

» davey52 - NEWS FLASH

Blind squirrel finds a nut; In GOOG 5/18 @ 472.7633. However the Cramer endorsement in not always a good thing. More at eleven. Stay tuned:)

-- posted by davey52

» Happy_2 - The S&P is historically low-priced here - WRONG

In response to The S&P is historically low-priced here posted by Kirk:

"...The S&P is historically low-priced here, he said. On Thursday, "the big drivers" of its leap over 1500 were selling at an average of about 14 times earnings, which Cramer said he believes is a historic low for the S&P...".

I remember back in the 70's when the PE on the S&P 500 was eight.

-- posted by Happy_2

» ekw - Cramer and Barnum

As some have noted, Barnum would be proud of Cramer, however, Cramer actually educates his audience while Barnum simply entertained them. And Cramer's considerable fortune came from his hedge fund. Today, since he is not allowed to invest personally according to his CNBC contract, he does make most of his money from the Mad Money show. But I doubt the money he gets from his show and his books comes even close to what he already has earned as a stock trader. If all you think is that Cramer is a clown, you're missing the point. I've personally made money using some of Cramer's picks but more importantly, from using the tools he has taught me on his show and from the books. Don't let your pride overcome your good sense, pay some attention to what Cramer is actually doing on Mad Money not just his silly getups and crazy patter.

-- posted by ekw