Cramer’s Calls Fusion-io, Freeport-McMoRan and More
By: Cramer dug into his mailbag Friday to answer viewers' questions and also turned in his homework on questions he was asked earlier in the week.
AllianceBernstein : Cramer wouldn’t go near this high-yielder, which is one of the largest publicly traded asset managers, because there is limited visibility into its performance and has a high risk of investors pulling out. He suggests Annaly Capital Management instead.
Fusion-io : This is an exciting company that makes computer expansion cards fro the flash-storage place, Cramer said, but he still thinks it’s too risky. While the IPO lock-up period just passed, the end of a secondary related lock-up period is coming and that could put more pressure on the stocks. Take a pass, he said.
YPF S.A. : Cramer would stay away from this integrated oil company from Argentina, which has a 10 percent yield, because there could be serious economic and political risks. If you want an integrated oil company with a solid dividend he suggests ConocoPhillips COP.
CYS Investments : Cramer would stay away from this residential mortgage REIT. CYS just went public in 2009 and there is limited operating history to judge its performance. It also just cut its dividend last week. Again, he prefers Annaly Capital Management.
Aluminum (Alcoa ) vs. copper (Freeport-McMoRan ) vs. steel (United States Steel ): Copper is still elevated enough that Freeport-McMoRan is going to have a great quarter, Cramer said, so that’s the one to play. And if you want steel, he would go with Nucor over U.S. Steel.
Peabody Energy : Jared from New Jersey bought some BTU on the way down from $50 and asked if he should add to his position at $36. Cramer said coal trades like copper or aluminum, not oil. He said to stay put until he revisits BTU in January when it goes higher. Then it might be time to exit the coal companies.
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When this story was published Cramer’s charitable trust owned Freeport-McMoRan and Alcoa.
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