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Contributors: Douglas McIntyre Jon C. Ogg

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Saturday, October 28, 2006

Cramer's Daily Picks

Tonight on Jim Cramer's MAD MONEY, Cramer said that Lowe's (LOW) has
bottomed, and he thinks you have to buy. He said that their earnings are 3
weeks away.

He said that the SEC went to REG FD in 2000, and that took away all the
advantage of hedge funds. He said you can now look at it the same way a
hedge fund would. You have to work bottom up and see how the suppliers are
doing what they senfd there. Top down you have to look at the strength of
the consumer and their spending.

He said a lot of hedge funds got short LOW when Stanley Works discussed high
inventories. He thinks that may be a mistake. He said Black & Decker rose
$4.00 on strong earnings, and they reported slim inventories.

He said on month ago Masco also gave cautious numbers, as did American
Standard, and as did Sherwin Williams. He said that Fortune Brands came out
and said the remodelling market was still doing well and that they gave a
good signal.

On the macro part, he said his checks with homebuilders make it look like
the worst has been seen. He also said you don't have to have a bottom in
homebuilders alone to buy LOW.

He thinks Lowe's (LOW) has bottomed out and now needs to play catch-up to
the rest of retail. Lowe's (LOW) closed down 0.98% at $30.34 today, but was
back up to $30.67 after he discussed LOW in after-hours trading. Its
52-week trading range is $26.15 to $34.85.

Cramer also said he thinks Caterpillar (CAT) has bottomed out and that is a

Jon C. Ogg
October 27, 2006

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