The 'Gold Standard' In Credit Cards
If home gamers want to play credit cards, then American Express is the “gold standard”, Cramer told viewers Tuesday.
He addressed the credit card issue after taking a question from Veena, a “Mad Money” viewer, who asked Cramer’s opinion on Mastercard and how regulations will affect this stock. Cramer said MA is too hard for him, which is why his charitable trust owns AXP. He believes American Express is going to be the preferred model when the Consumer Financial Protection Bureau opens up.
The next question came from Ken in Little Rock, Ark. He asked what the “Mad Money” host thought was happening with Ford, which has taken a beating despite its good earnings and upgrade by Citigroup. Cramer said the worry about a strike has kept a lid on Ford, not the earnings or management.
Lonnie in Texas was interested in innovative companies that are re-purposing existing pipelines, building new ones and looking into using unit-trains to bring oil to refineries on the Gulf Coast. Cramer’s pick is Kinder Morgan Energy Partners , who is actually investing in trains and has a nice yield.
Finally, Cramer vowed to do his homework when asked about Savient Pharmaceuticals back on May 2nd. After looking into this biotech company, Cramer said he can’t recommend the stock right now. While SVNT recently won approval for a gout treatment drug, the company said it doesn’t expect an increase in demand for the drug until the second quarter of next year. That’s why the stock likely won’t do much in the near-to-medium term, and Cramer thinks there are risks associated with the launch and potential competition in the long term.
When this story was published, Cramer's charitable trust owned American Express.
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