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A Gigantic Buy - Cramer's Stop Trading! (9/23/08)

by: SA Editor Joan Wickham September 23, 2008 | about stocks: BBY / CC / CHK / GME / JWN / NBR / PVH / RL / WMT    

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Joan Wickham

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Recap of Jim Cramer's comments on Stop Trading! Tuesday September 23.

The failure by Congress to pass Treasury Secretary Henry Paulson’s bailout plan could send the U.S. into a financial Stone Age, said Cramer.

Retail Would Take a Hit - Ralph Lauren (RL), Nordstrom (JWN), Gamestop (GME), Philips-Van Heusen (PVH), Best Buy (BBY), Circuit City (CC), Wal-Mart (WMT)

Retail in particular would take a big hit. Since Lehman Brothers filed for bankruptcy and AIG needed an injection of capital from the government there’s been a “complete freeze” in spending, Cramer said. Ralph Lauren, Nordstrom, Gamestop and Philips-Van Heusen are “very vulnerable.” Shoppers may still visit stores like Best Buy and Circuit City but they’re buying the cheaper versions of the products they want. But there is at least one opportunity in the space, he said. "It's all Wal-Mart. Wal-Mart could end up killing everyone." Consumers are trading down to more affordable outlets. Wal-Mart is the "ultimate stock," he said. "There's really no other retailer to own other than Wal-Mart.” Cramer called Wal-Mart a “gigantic, gigantic buy…because people just feel very poor.” Even if Paulson’s plan passes, Cramer said, September has been “the worst retail month in memory,” so these companies are hurting.

Oil and Gas Moves - Chesapeake Energy (CHK) and Nabors (NBR)

In oil and gas, Cramer favors Chesapeake Energy and Nabors, the latter because, despite a bad quarter, hasn’t gone up in tandem with the price of oil.

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and Stop Trading!

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This article has 20 comments:

  •  
    Sep 23 07:56 PM
    I don't agree with GME. Gamers aren't subject to the same people as clothing stores. Heck, I saved $50 by purchasing the new starwars game and staying home for the evening and not going out on the town.
    Reply
  •  
    Sep 23 07:58 PM
    I will agree that people might toss the baby out with the bathwater, but that would mean a buying opportunity in my mind..
    Reply
  •  
    Sep 23 09:03 PM
    Mista--you only get one comment. What's up?
    Reply
  •  
    Sep 24 12:26 AM
    Who said you only get one comment?
    Reply
  •  
    Sep 24 12:26 AM
    Whats up?
    Reply
  •  
    Sep 24 03:58 AM
    What the @#$% does Paulson's plan have to do with consumer spending? Is Cramer assuming that consumer lending will increase, boosting spending? Wow, that would really put the economy on solid footing.
    People are tapped out and fed up. Energy and food cost too much, their supposed home "investment" is tanking and this plan won't do a d@#n thing for consumers. Nobody is going to run up their credit card on frivolous purchases because AIG got bailed out!
    Also, I agree about Gamestop. People who play video games will be more likely to shop there as opposed to the big box stores as the economy worsens. Better prices!
    Reply
  •  
    Sep 24 09:22 AM
    O.K. Two Comments, but that's it.
    Reply
  •  
    Sep 24 10:35 AM
    I agree with MistaWhite. I'm a gamer and the only place to save a bundle of money is GME. It's really the only store where you can trade in your games, get cash for it or put it towards store credit Also if you take a used game home and you don't like it you can return it without a problem. You can't do that at any other store. The only other place to buy cheap games and used game consoles is Ebay, but then you still have to pay $5-$10 in s&h and wait a week+ for it. GME is the best place to buy games hands down. The majority of gamers are between the ages of 16-25 and they're not as frugal with their money when it comes to gaming.
    Reply
  •  
    Sep 24 11:47 AM
    The Stone Age? Yes! it will screw Cramers buddies on wall street, they wont be able to screw the little guy as easily. The problem is too much money out there where the big guys skim off a little bit from many people.

    France, 1789 here we come!
    Reply
  •  
    Sep 24 03:00 PM
    huskerbob: Sorry, I have to post one more. Husker? Are you from Nebraska? I am from Columbus, NE, lived in Omaha, and moving back in a couple months. If you are located there, maybe we can get together and chat about stocks!

    Sorry for the non-related posts...
    Reply
  •  
    Sep 24 10:09 PM
    Econ 101 , yes, The Rich require an abundance of ......poor.....
    Reply
  •  
    Sep 25 01:31 AM
    Ozark and Pfloyd234 both have good thoughts, but i think they're both a little off. Enforcing a limit of 1 comment per person is definitely too harsh,
    but 2 comments IN A ROW stretches the envelope of acceptability way too far.
    Reply
  •  
    Sep 25 02:44 AM
    looks like a top in WMT. If cramer gets as bullish on a stock as possible then ...
    anyone following cramer's recommendation fully deserves to get, well, cramered
    Reply
  •  
    Sep 25 08:08 AM
    This is to the Editor of SA;
    why do you still feature Cramer here? You only attract nonsense like above and compromise your otherwise high standard!
    Reply
  •  
    Sep 25 09:39 AM
    Inre: Cramer's advice.

    You get what you pay for.
    Reply
  •  
    Sep 25 06:46 PM
    "France, 1789 here we come!"

    I couldn't agree with this statement more! I

    I have no problems purchasing with -- money or bartering.
    Reply
  •  
    Sep 26 12:32 AM
    Gamestop enables people to buy with trade-ins, which makes them the low-price leader. Cramer must be short Gamestop.
    Reply
  •  
    Sep 26 09:14 AM
    Thanks for the GME info--- the tide has clearly turned for young people who like video games: I believe a lot of them don't measure 'cool' or 'success' as young people used to. It's all about proficiency in the game, and hot rods and physical toys are taking a back seat for many, many <25 yr olds. Maybe I'm overstating, but have you observed 16 yr olds in action when it comes to video games? It's the future.
    Reply
  •  
    Sep 26 01:44 PM
    So he is in panic mode? seems like the playbook says to buy now. this guy has been wrong at every major turn this year - - uncanny how bad he is
    Reply
  •  
    Sep 26 01:54 PM
    Cramer's economic forecast are as good as his stock picks

    Put a sock in it Jim....

    go with your strength............co...
    Reply
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