All week Cramer has been drafting a portfolio of all-star stocks the way football fans pick their fantasy teams. He recommended a group of stocks for each key position with the intention of picking only the best for today’s show. Here’s who made the cut.
For quarterback, the team leader, Cramer went with Exxon Mobile. When XOM moves higher, so does the market. “No other stock can do [that] in the whole market," he said. Cramer called XOM “perfect" and "consistent,” like Peyton Manning.
The best defensive stock was MedcoHealth Solutions, which finished the horrific month of August almost $2 higher than where it started. Cramer likes the fact that MHS has no raw costs the way Pepsico and Procter & Gamble do. He also likes the earnings visibility the pharmacy benefits manager has thanks to more and more drugs going off patent each year. Even if the Fed cuts rates, the stock should still go to $100, Cramer said. Who's the equivalent on the field? The New England Patriots.
Enterprise Product Partners got tapped for tight end, a position that encompasses moving the ball downfield and blocking. Think Jason Witten of the Dallas Cowboys. Cramer is bullish on EPD for its 80% ownership of Independence Hub and the 6.5% yield.
Research in Motion is “mopping the floor with Palm,” Cramer said, and that’s one reason he picked the company as his top wide-receiver stock, one on par with the New England Patriot’s Randy Moss. By every metric, RIMM is performing well; so much so Cramer said it could double. “It’s got the greatest momentum of any large-cap growth stock in the universe," other than maybe Baidu , he said.
Freeport McMoRan got drafted as Cramer’s number-one running back, and so did the San Diego Charger’s LaDainian Tomlinson. Cramer is a huge fan of both. As a big gold producer, FCX is a hedge against inflation. Its position in copper – a great place to be given the demand in China – makes it a growth stock. All this and it’s cheap too.
For the most part, Cramer was happy with the other fantasy-football stocks he mentioned this week, but these five were the best among the best.
Jim's charitable trust owns Corning and Freeport McMoRan.
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