Today’s MAD MONEY on CNBC with Jim Cramer was on the road at the University of Texas at Austin. Today Cramer said he’d have 4 best of breed stocks at a discount the he would buy from Texas. He looked at 207 stocks with a $500 million market cap or more and that have all been overlooked or tossed out by Wall Street.
The first stock he likes is J.C.Penney (JCP-NYSE) as the best retailer in his universe right now out of large cap retail stocks. He thinks the CEO, Mike Goldman, should get the benefit of the doubt. When they said they had to fix the product mix and take a charge, the stock was dropped and is down another 10% hit. With the buyback and with the strong sales he thinks it can have an upside surprise.
His second pick is Transocean (RIG-NYSE) even after the group was hammered today. Cramer said this has little exposure to the weak areas of Canada and the Gulf of Mexico. They can raise rates highly because of rig demand. They can only buy back stock so fast and the cash is coming in faster than can be spent.
His #3 pick is XTO Energy (XTO-NYSE) as the finest Wildcatter in North America with 17% reserve growth. It replaced 265% of production, and they hedged gas at $9.00 and oil at $70. Cramer says it is a growth stock and he would buy it aggressively.
Cramer’s FAVORITE pick is Temple-Inland (TIN-NYSE) that needs to be broken up. Carl Icahn is in it and that was successful. Here are the unit values: $21, $21, $31, & $18; then -$15 debt….He thinks it is an $85.00 stock masquerading as a $58 stock. He thinks this one has $27 upside.
In a student question, Cramer said he cannot get behind Whole Foods (WFMI) yet because it is expensive, even though he thinks that the Wild Oats buy was genius.
In another question Cramer said that JetBlue (JBLU-NASDAQ) is the airline to own with a $2 down and $7 up scenario even though he likes Continental (CAL-NYSE).
Jon C. Ogg
March 20, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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