Jim Cramer's Mad Money Review

Mad Mail: First Niagara (FNFG), Pfizer (PFE)

A viewer asked why Cramer was so bullish on regional banks when institutional investors are shunning these financials. Cramer replied that the strong regional banks like First Niagara are going to have the chance to swallow up weaker banks, like Fleet did in the wake of the Savings & Loan crisis in the 80s.Cramer told another viewer that Pfizer's acquisition of Wyeth won't help it much; "It's a deadweight stock

Tessera Technologies (TSRA)

Even though Tessera has had a sizable run from $16 to $20, Cramer thinks it is an even better buy right now because the International Trade Commission ruled in Tessera's favor in a patent infringement case. Now Qualcomm, Motorola, Freescale Semiconductor and others have been told to stop imitating Tessera's products and to pay licensing fees, which should generate $60 million in royalties this year.

Tessera has many new products set for release and it focuses on semiconductor miniturization, or making smaller, more efficient chips. It produces tiny cameras for phones and computers and is working on a cooling system for laptops. While it is unlikely the patent infringement decision will be reversed, Cramer would still treat Tessera like any speculative stock and urged viewers to do their homework, use limit orders and avoid buying an entire position all at once.

The Real Reason for the Rally: Apple (AAPL), Google (GOOG), Research in Motion (RIMM)

Apple's upgrade and surging consumer confidence did not cause the Dow to climb 196 points. Oil, tech and banks were just continuing the rally they started in March after taking a breather on Friday's decline; the consumer confidence number was merely a catalyst that returned the market to the direction it was headed anyway - upward. After pulling back on Friday, Apple gained $8 on Monday, Google $10 and RIMM $5. For those who missed out on this opportunity, Cramer urged investors to use pullbacks as buying opportunities, because down days in a bull market are like launching pads to propel stocks even higher. Cramer disregards the bears who predict a 6,500 Dow and declines of more than 10%.

Off the Charts: General Mills (GIS)

Cramer is a fan of General Mills, but at the right price, which is not at its current $52. He used both technical and fundamental analysis to make his case. According to the charts, the stock has a resistance level of $55-$57. While that is up from $52, it doesn't mean much of an upside. Cramer is worried about General Mills' 7 cents per share earnings miss, especially since management had indicated that the company's performance was strong. Looking back at the charts, the ideal place to buy General Mils is between $48 and $50; "Above that level, I think you're paying too much," Cramer said

Labels: AAPL, Apple Inc., First Niagra, FNFG, General Mills, GIS, GOOG, Google Inc., Jim Cramer, Mad Money, pfe, Pfizer, Research in Motion, RIMM, Tessera Technologies, TSRA

On Friday, he recommended CKE Restaurants(CKR Quote), which operates Carl's Jr. and other chains and which Cramer said is "gigantically behind the rest of the group."

"I think this is also a call on gasoline peaking," he said. "I think gasoline comes down."

Cramer's secret play on the iPhone was Skyworks(SWKS Quote), which he said makes the chips that go inside the smart phones. "I'm always surprised when the iPhone sales are up that people don't reach for Skyworks," he said.

Another tech pick was Qualcomm(QCOM Quote), which Cramer owns for his Action Alerts PLUS charitable trust. "It is so rare these days that you hear estimates are too low," he said. "It has been totally trapped at this one price, and perhaps it's breaking out."

Fortress Investment's(FIG Quote) secondary offering is "kind of secondary that makes Wall Street look bad," said Cramer. "I really think that the bankers sided with Fortress against the shareholders that bought it."

He said he doesn't like Regents Financial(RF Quote). "This one looks really, really awful, " he said.

Labels: FIG, Fortress Investment, Jim Cramer, QCOM, Qualcomm, Regents Financial RF, Skyworks, Stop Trading, SWKS

Obama's Biggest Enemies: Capital One Financial (COF), Southern Company (SO)

Cramer said the decline on Thursday was caused by the President's tough talk against certain sectors. Since Obama has demonstrated his ability to be a powerful market mover and a leader who implements his plans, Cramer would beware of certain sectors Obama considers to be inimical to his plans: credit card companies, coal, steel, utilities and drug companies. He suggested taking profits in these sectors until Memorial Day. Obama has plans to limit fees of credit card companies like Capital One Financial.

Anything having to do with carbon: coal, steel or utilities, should be sold, according to Cramer, and even China cannot save the likes of Southern Company from declines. The healthcare sector is engaged in some serious cost-cutting which may hurt shareholders as it feels threatened by Washington; "Obama's threats are real and investors need to pay attention."

Sell Block: Northrop Grumman (NOC)

One sector Cramer initially thought was on Obama's enemy list, but is actually a friend, is defense. Cramer confessed he made the wrong call on Northrop Grumman because he was worried Obama would cut defense. In fact, defense spending has increased 4% over last year and NOC has raised its dividend by 3 cents. Backlogged projects, including the construction of 8 submarines, are now in production. Northrop Grumman plans to increase profitability, expand margins and cut costs. Cramer says he believes in the management which knows how to reduce risk and maximize reward. He thinks the stock is a buy, especially under $43 with a 4% dividend.

Natural Gas Is Back: Anadarko Petroleum (APA)

According to Cramer's rule of thumb that natural gas usually trades 6 times lower than oil, natural gas, which is now 16 times lower than oil, is seriously undervalued. Cramer thinks natural gas will find its way back into favor as a bridge fuel between gasoline and alternative fuels. His favorite stock in the group is Anadarko Petroleum, which is up 12% since January and is likely to go higher when the effects of its secondary offering are felt and it can clean up its balance sheet. While shareholders suffered temporarily from the secondary offering, ultimately the move was necessary to prepare Anadarko for consolidation in the industry. The company is 65% levered to natural gas, is flush with cash and has 10 new discoveries across the globe.

Andrew Liveris Redeemed: Dow Chemical (DOW)

Cramer made a rare release from his CEO Wall of Shame. He had confined Dow CEO Andrew Liveris for his botched acquisition of Rohm & Haas. However, since then the CEO is doing everything in his power to make the merger work and is issuing stocks and bonds to raise more cash. While Cramer released Liveris, he warned viewers that there would be a new addition to the Wall of Shame next week.

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Labels: Anadarko Petroleum, APA, Capital One Financial, COF, DOW, Dow Chemical Co., Jim Cramer, Mad Money, NOC, Northrop Grumman, SO, Southern Company

American Growth Fund of America (AGTHX), Google (GOOG), Oracle (ORCL), Cisco (CSCO), Apple (AAPL), Microsoft (MSFT)

It is worth following in the footsteps of the top hedge fund, American Growth Fund of America, which is outperforming other funds with its 9.5% gain. Its top holding is Google, a stock many feared would plunge because of falling advertising revenues. Google is actually profiting from the rapid transition from print to online advertising. Cramer said the internet giant is "the cheapest growth stock I know." Thirteen is a lucky number for Oracle, the fund's second largest holding; Oracle has a 13% growth rate and trades at 13 times earnings; Cramer thinks this position could grow. Cisco, the third largest holding is nine points off its high but has superb potential, and Cramer thinks it could reach $23 or $24. The fund also has Apple, a stock Cramer likes and Microsoft, the only holding he would avoid.

CEO Interview: Michael Linn: Linn Energy (LINE)

President Obama has not mentioned natural gas since he was elected, and Cramer asked Linn if this makes him nervous. Even without the lip service, natural gas will be a necessary bridge fuel as the nation makes the transition to alternative energy, said Linn. He added the company hedged its 2009 production at $80 to $100 a barrel oil prices, so Linn has been conservative and has significant protection in an uncertain environment. Michael Linn said he is not nervous about liquified natural gas imports and he sees no reason why the company would cut the dividend. Cramer says Linn is a buy.

Mad Mail: First Niagra (FNFG), Geron (GERN)

Cramer is bullish on First Niagra because it is raising money for acquisitions and he thinks the bank could triple in size. He would buy on any dip. On the other hand, Cramer says Geron is too speculative.

Labels: AAPL, AGTHX, American Growth Fund of America, Apple Inc., Cisco, CSCO, First Niagra, FNFG, GERN, Geron, GOOG, Google Inc., Jim Cramer, LINE, Linn Energy, Mad Money, Microsoft corp., MSFT, Oracle, ORCL