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Tuesday, October 10, 2006

Cramer says Sell Consumer Staples, Buy Cyclicals

Tonight on Cramer's MAD MONEY, Cramer said get rid of cereals and sodas stocks to get into a name that will make you rich. He is repositioning and changing his stance in the market, and it is time to get out of the consumer staples Coca Cola (KO), P&G (PG), General Mills (GIS, and Kellog (K). He thinks cyclicals will are about to be done from selling now.

He said he called this six months ago and that the six months is now up. Now Cramer is recommending technology, financials, retail, and housing-related plays. He said the idea of a hard landing died this last week.

Cramer thinks Altria (MO) is still good, and you can keep that and keep Kimberly Clark (KMB).

He said the oil price didn't decline on lower demand, but it declines because the price was manipulated and based on speculation of shortages from normal supplies or from a hurricane. That is gone he said.

He did not endorse Wal-Mart (WMT) because they have an inability to create an enjoyable shopping experience.

He noted housing has bottomed and may be on the way up. He said Deere (DE) was hardly hurt by Agco (AG) and he likes Caterpillar (CAT) and Lowe's (LOW), Black & Decker (BDK), American Standard (ASD) and Ingersoll Rand (IR).

In financials he likes Capital One (COF) and AIG (AIG).

Back up the truck and buy top tech names like Cisco (CSCO), Hewlett Packard (HPQ), and Oracle (ORCL).

He even likes airlines like Continental (CAL) and his FRESH TRADE OF THE WEEK IS "UAL" (UAUA-NASDAQ).

Jon C. Ogg
October 10, 2006
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