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Thursday, July 06, 2006

MAD MONEY Recap for July 6, 2006

Main Stock Tickers: LEA, CTB, TTM, GPC, STJ, BSX, ISRG, FO, ENB

Jim Cramer started the show discussing VALUE STOCKS, which he doesn't normally do. He looks at each one different as value for different reason, and all are much different than any growth names.

His FIRST value pick was Lear (LEA) as the survivor and last man standing that averted a liquidity cruch that has a shot at acquiring all the bankrupt part makers it wants or sees value in for pennies.

In call-ins on the auto sector he was POSITIVE on Cooper Auto Parts (CTB) and Tata Motors (TTM) in India, and Cramer was NEGATIVE on Genuine Auto Parts (GPC).

His SECOND value pick was St. Jude Medical (STJ) as a medical device maker that is ripe to be consolidated in an acquisition in the cardiac device space. He said Boston Scientifc (BSX) and Medtronic (MDT) are the only others left,and he said STJ is close to 52-week lows and is hated by analysts and hedge funds. He says that BSX's recall problems are good for STJ, as STJ hasn't had recalls. He said even J&J (JNJ) may want to look at them, but that would take a long time with JNJ digesting PFE's consumer unit but someone else could come along. He thinks it has $2 downside and $10 upside.

In call-ins for the medical and device sector Cramer was NEGATIVE on Intuitive Surgical (ISRG) is still at the lower-end of the mid cap range that would, but the risk reward is frightening.

His THIRD value pick was Fortune Brands (FO) down $20 since September and down huge this year at 12-times 2007 estimates and in praise of the CEO with 11% growth. He said it is cheap on its home products business and golf business has been worse than its liquor business. He thinks the negative home products unit is why they are so battered, but he said stalling home sales aren't a problem for a home products company that thrives off of repairs.

Cramer also discussed OIL SANDS in Canada by interviewing Enbridge's (ENB) CEO as a play to benefit from a pipeline that can transport this oil down from Canada to the US. ENB's CEO said that it will go from 1M barrels per day to 2.8M barrels per day over the next 9 years. He liked it when he found it and likes it now.

in the LIGHTNING ROUND: Cramer was Positive on Qualcomm (QCOM), Google (GOOG), Yahoo! (YHOO), Altria (MO), First Data (FDC), Baxter (BAX), NS Group (NSS), Schlumberger (SLB), Nabors (NBR), International Game Tech (IGT), Halliburton (HAL); and he was Negative on Hansen Natural (HANS) until 3 days after the split, Emdeon (HLTH), Chipotle (CMG) until lower prices, XING (XING), ClickCommerce (CKCM), AVANIR (AVNR), Northfield Labs (NFLD), Andersons (ANDE), Oneok (OKE), Nam Tai Electronics (NTE), Arris (ARRS), Netgear (NTGR), Cisco (CSCO), and Ford (F).

Jon C. Ogg
July 6, 2006
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