Game Plan for the Week of June 25
The problems of two little hedge funds don’t amount to a hill of beans in this world, Cramer said.
So when two Bear Stearns hedge funds lever up and blow it, don’t take your money and run. This had nothing to do with subprime woes. In two weeks, no one will even remember the Bear debacle. When’s the last time you thought about the Amaranth implosion that happened a few months ago?
If you bailed out, Cramer has a few reasons to get back in.
The summer is slow for earnings, so you trade off conferences instead. Cramer likes XTO Energy and Medco Health Solutions ahead of the Wachovia meeting Tuesday.
XTO just bought Dominion Resources’ natural gas properties, and there’s a possibility that it could be doing a master limited partnership. The MLP alone could be worth 10 points, Cramer said.
Express Scripts speaks Tuesday at Jeffries and Wednesday at Wachovia. Cramer recommends buying it Monday and holding it through Wednesday.
There are some earnings still lingering about, though. You might want to buy half of a position in Nike before it reports Tuesday, then the other half after if it gets hit. Foot Locker had a bad quarter, and some on Wall Street are expecting Nike to do the same.
Kroger estimates are still too low, Cramer said. So it might be a good move to pick some up Monday before its report Tuesday. The same goes for Oracle, which has had a nice consistent run.
McCormick gets the nod as a low-risk, moderate-reward play. Cramer thinks it gets 1.5 up, half a point down.
If you watch Mad Money, you know how much Cramer loves Mary Sammons at Rite Aid. The retailer reports Thursday, and it might be a chance for the CEO to say there are more synergies with the Eckerd and Brooks drugstores her company bought back in August. Cramer thinks this is a tradable event.
Research in Motion reports Thursday, and the stock has traded wildly off past quarters, Cramer said. He’s willing to go out on a limb and recommend buying and waiting. If it trades down, you can buy more. If it flies, you made some money. Cramer just doesn’t want to see investors buy all at once with a stock that has been subjected to raids in the past.
Bottom Line: If you panicked out of the market this week or got your head handed to you today, there’s always next week. We’ve got catalysts for XTO, Medco, Express Scripts, Nike, Kroger, Oracle, McCormick, Rite Aid and RIMM, so get to work.
Jim’s charitable trust owns Nike and XTO Energy.
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