Cramer's 'Mad Money' Recap: Rally Caps: "Cramer's 'Mad Money' Recap: Rally Caps

Cramer's 'Mad Money' Recap: Rally Caps

By TheStreet.com Staff
7/8/2005 10:37 PM EDT

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Jim Cramer and his "Mad Money" viewers reveled in Friday's rally, which pushed the Dow up more than 146 points and buoyed the Nasdaq to a six-month high.
But Cramer said there's more room to grow. "Don't go cashing out yet," he noted.

Contributing to the huge run-up in stocks on Friday, said Cramer, was a benign employment number that gave nobody a reason to sell, as well as a good earnings report from Alcoa (AA:NYSE - news - research).

However, the prime contributor to the surge in stocks was the negative betting by the hedge funds put in the wake of the London bombings. "This time the pessimists were wrong," Cramer said. As they scrambled to cover their shorts, stocks moved higher. And, "those that weren't nimble, were steamrolled."


But would Friday's rally extend into other sectors? Not if that sector is telecom, Cramer said. "I can't give you the all-clear in telco," he said. Similarly, Cramer added that he felt good about exiting bank stocks, as he continued to see a rotation into tech stocks.

Cramer also said he favored consumer-based manufacturers like Procter & Gamble (PG:NYSE - news - research) and General Mills (GIS:NYSE - news - research), rather than industrial names like 3M (MMM:NYSE - news - research), although he gave a shout-out to Boeing (BA:NYSE - news - research).

Picking Winners
However, for those who missed Friday's stock ascent, it's not too late, according to Cramer. "You can still pick winners in a market like this," he said.
One way to do so is by going back to that same well of winners, most of whom will continue to outperform. Cramer noted that six of the 10 biggest winners in the S&P 500 during the first half of 2005 were in the oil and gas sector - an area he continues to like, since he's still bullish on the underlying commodities.

Riffing through a list of the top 10, Cramer said he's still bullish on Valero Energy (VLO:NYSE - news - research), EOG Resources (EOG:NYSE - news - research), LSI Logic (LSI:NYSE - news - research), Nordstrom (JWN:NYSE - news - research), Sears Holdings (SHLD:Nasdaq - news - research), KB Homes (KBH:NYSE - news - research), Marathon Oil (MRO:NYSE - news - research), Sunoco (SUN:NYSE - news - research) and CMS Energy (CMS:NYSE - news - research).

Cramer also said he liked certain related stocks, such as Broadcom (BRCM:Nasdaq - news - research), St. Joe (JOE:NYSE - news - research), Encana (ECA:NYSE - news - research) and PNM Resources (PNM:NYSE - news - research).

Conversely, Cramer doesn't expect much from the S&P's biggest first-half losers, shooing viewers away from Unisys (UIS:NYSE - news - research), Sanmina (SANM:Nasdaq - news - research), Symbol Tech (SBL:NYSE - news - research), Gateway (GTW:NYSE - news - research), Delphi (DPH:NYSE - news - research), JDS Uniphase (JDSU:Nasdaq - news - research), Avaya (AV:NYSE - news - research) (preferring Lucent (LU:NYSE - news - research) instead), eBay (EBAY:Nasdaq - news - research) and Delta Air Lines (DAL:NYSE - news - research).

However, he'd "back up the truck" for first-half loser Biogen (BIIB:Nasdaq - news - research), which he expects won't be left behind in the biotech rally.

Bullish
Many of Cramer's recommendations during Friday's "Lightning Round" reflected his confidence in the tech sector. Cramer gave the thumbs-up to: WebEx Communications (WEBX:Nasdaq - news - research), Microsoft (MSFT:Nasdaq - news - research) (although Cramer said it needed a "shot of epinephrine" to move out of its trading range), Lennar (LEN:NYSE - news - research), Cisco (CSCO:Nasdaq - news - research), St. Jude Medical (STJ:NYSE - news - research), Applied Materials (AMAT:Nasdaq - news - research), Sepracor (SEPR:Nasdaq - news - research), Skyworks (SWKS:Nasdaq - news - research) and Public Service Enterprise Group (PEG:NYSE - news - research).
He also said he liked Energy Conversion Devices (ENER:Nasdaq - news - research), Alderwoods Group (AWGI:Nasdaq - news - research), Corning (GLW:Nasdaq - news - research), TurboChef (OVEN:Nasdaq - news - research), Ingram Micro (IM:NYSE - news - research), Seaboard (SEB:NYSE - news - research), Citigroup (C:NYSE - news - research), Protein Design Labs (PDLI:Nasdaq - news - research), Nike (NKE:NYSE - news - research), Reebok (RBK:NYSE - news - research), First Marblehead (FMH:NYSE - news - research), Aqua America (WTR:NYSE - news - research) Dolby Labs (DLB:NYSE - news - research).

In addition, Cramer said he sticks by his prediction that shares of Google (GOOG:Nasdaq - news - research) will reach $360. "I think we're fine," he said, but noted that he currently prefers Yahoo! (YHOO:Nasdaq - news - research) to Google.


Bearish
Not getting "Lightning Round" seals of approval on Friday were: International Flavors & Fragrance (IFF:NYSE - news - research), Yellow (YELL:Nasdaq - news - research), UPS (UPS:NYSE - news - research), FedEx (FDX:NYSE - news - research), PetroKazakhstan (PKZ:NYSE - news - research), WPT Enterprises (WPTE:NYSE - news - research), Tri-Valley (TIV:NYSE - news - research), Verizon (VZ:NYSE - news - research), Pfizer (PFE:NYSE - news - research) and Wolverine World Wide (WWW:NYSE - news - research).


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