Mad Mail: Identifying 'The Best In Class' Stocks
Dear Jim: Great interview with Skyworks Solutions CEO, he kept mentioning the challenge of multiple cell phone circuit's demands on battery life. I kept waiting for the question on who is the best battery maker given these challenges. Maybe you knew, what's your view? Is there an opportunity here?
Cramer says: "I always send people to SQM, who has the major source of lithium, which is used for for long-life batteries. It has been hurt because it's in Latin America, hurt because it was owned by a lot of AG guys, it is a very cheap stock."
Jim: I own a Harley, ride with a club, shop at any dealership I run across, and just like the company in general. Like many companies recently, Harley Davidson has doubled. My question, should I sell half of my shares and keep half "free" or sell it all, take my profit, and go by a T-shirt from my local dealer?
Cramer says: "Ring the register at half. I saw the CFO left this weekend and nobody seemed to care because the market is so bullish. But it might care again sometime, so ring the register on half of it."
Jim: A few weeks ago you mentioned that State Street and Bank Of NY were set to benefit the most with the recent mark-to-market changes. I work for STT, and at our recent quarterly meeting, our CEO said that the media has over-hyped this accounting rule change and that STT would not benefit from it. Please explain?
Cramer says: "STT did not get the full, favorable ruling I was hoping for existing impairment for portfolios. But STT I think could be like Northern Trust, I own it for my charitable trust, I'm telling people there could be an equity underwriting, not unlike Northern Trust - which popped 10% - so stay tuned, your boss is right, it did not go the way I wanted it for State Street, but it's still a positive for the whole industry."
Cramer: What are your thoughts on the trucking industry, specifically Con-Way? With oil at these levels, will this industry fully recover by 2010?Cramer says: "This industry has a fuel surcharge, forget about oil. Con-way can bounce, but I continue to like UPS. It's UPS, then FedEx, then any trucking company... but don't forget the rails, the are enfuego!"
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