Mad Mail: Buy This iPhone-in-China Play
Web Editor, "Mad Money"
Jim: My question is regarding Sunoco. When Oil started going past $70 a barrel the stock went down because people feared that it would eat into SUN's margins. Now that oil is coming down, people fear there is no demand. Either way, SUN seems to be getting pummeled, is this just a no-win situation for SUN? Thanks again! --Suny
Cramer says: “First of all, let’s presume it is a no-win, because it has just pure refining. Why don’t you own Marathon Oil then, which has both… downstream [and] upstream. It owns the whole panoply. That’s a better stock than SUN. SUN does have a better dividend. Or if you want pure refining, go to Valero. Now, we don’t like Valero. The CEO’s on our Wall of Shame. But SUN just happens to be one of these companies nobody really cares about. I think one day it gets bought. But you know what? It depends on the margin. What it buys oil versus what it can sell it to you as gasoline. And that’s a very tough business. That’s why I never recommend the refining stocks on Mad Money.”
Cramer: What happened to the digital conversion panic at RadioShack? I bought it at $15 and entered a sell order for $17. It's gone south ever since. When do I panic and sell? --Jim
Cramer says: “Let’s walk through the trade. What I said was I felt that there would be a rush to be able to go to RadioShack and that we would catch an upgrade or someone saying something good about RadioShack after last weekend. I was very specific. I said, either way we either get the upgrade or the news or we don’t and we have to sell. That was the way a catalyst trade worked. My hope was that it wouldn’t be that far from where you bought it to where you sold it. It didn’t work well. You lost $1 if you did the trade. I have to own that, but that’s what happens with a catalyst trade. So you need to be out of it. Why did it get further whacked? Because Best Buy reported a disappointing quarter, and that brought RadioShack down.”
Cramer: I know you don't like China stocks, but what do you think about China Unicom Hong Kong. I bought it a couple weeks ago on the news of its 3G network plans. Since the initial move up into the $15s, it has pulled back significantly. Do you think there is anything here long-term or are people using the news as a simple trade? --Dan
“For my charitable trust, I’ve decided to build a substantial position in CHU. I bought it into this weakness. I think CHU is right. We know from RF Micro, we know from all of our research that China’s aggressive rollout of 3G will be fantastic for CHU, as will the Chinese iPhone. So I think you buy CHU aggressively here.”
Hi Professor Cramer: I know you like BE Aerospace and Boeing, but what about Embraer Aeronautica. What I thought was cool about ERJ is that they are in Brazil and apparently striking a deal with China. And like Boeing, they build most of the plane, as opposed to BE Aerospace, who builds the interiors. How does ERJ rate in your book? --Trent
Cramer says: “Trent, I think it’s a really good idea. Remember what I’m calling for. I’m calling for a multiyear aerospace cycle. Boeing disappointed me. They did not put [the 787 Dreamliner] in the air. I thought for sure they would…I’m still a believer in the aerospace cycle. I think you’ve got a good one. The Brazilian market is red hot. I think that Embraer’s a good idea.”
Cramer's charitable trust owns China Unicom.
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