It's Time for the Lightning Round!
Ford : “I don’t mind the company, but the stock is wrong.” Cramer says he would go with the Ford convertible bond – and he still believes the company will be successful with their turnaround.
Denny's : “They did not have a good month.” But Cramer is sticking by them because of their restructuring plan.
Companhia Vale do Rio Doce : “This company accomplished something that no other company could do in the Western hemisphere: It literally merged with its number-two competitor, Inco” and has created a mineral powerhouse. Cramer thinks it has $45 written on it. He has liked this company for 10 points, and he’s going to keep liking it for another $15. “Ultimately, RIO will go to $50.”
NYSE Group : “I think this is the most undervalued stock on the New York Stock Exchange.” (How ironic, huh?) Cramer just bought some for his charitable trust, and he’s anxious to pull the trigger again because “it’s so darn undervalued.” This one is a keeper, he says.
Yahoo! : Despite a Wall Street Journal article about the possibilities of AT&T scaling back its partnership with Yahoo! (and thus hurting Yahoo!'s bottom line), Cramer is staying with it.
USG : Cramer thinks USG is too levered to the housing market. Housing is still going lower, and it ain’t over yet with subprime, he says.
Big Lots : Cramer cautions that it’s up 120% year-over-year and that means that bulls make money and bears make money. "It probably has a little bit more to go."
Heelys : Cramer is negative on this company, saying it is overvalued.
News Corp : "This is an interesting company … I think its actually getting very close to the point where you want to ring the register. Doesn’t mean I don’t like it, it just means it’s had a big run.”
Spectra Energy : “They didn’t pay a big enough dividend, that’s why it's going down.” Cramer thinks this stock could still go a couple bucks lower before it finally yields to 4.5%, then it would attract people, but right now he doesn’t want to touch it.
BEA Systems : “I am disappointed in how this company reported … I still believe that Oracle could take them out.” Cramer admits that he has been wrong on it lately, but he’s sticking with it for now.
Quiksilver : “Awful. This is one of the worst quarters I have seen from an apparel company.” It’s too late to sell right now, Cramer says, but if that stock rallies, then "sell, sell, sell!”
Jim's charitable trust owns News Corp. and NYSE Group.
Questions? Comments?