Despite the past few days, Jim Cramer re-affirmed his bullish stance by saying this market has “gusto” and he feels there is still plenty of room to run. He pointed out that the bears have a long road ahead especially given his call for the DOW to move up another 1,000 points. He still thinks the drillers are the place to be, not to mention his new favorite plays, machinery stocks. Regardless, there are plenty of ways to make money in this environment and Jim shared his knowledge with us, including a run down of all the DOW components. Here are some of the highlights from Jim over the past week (aggregated from Mad Money, Stop Trading! and his articles):
Cramer’s DOW Plays: On the Mad Money 5-21-07 show, Cramer began his weeklong series giving his take on the Dow components.
Cramer believes the index will reach 14,548 this year, and he sees it climbing by close to 500 points in the next three months and then another 500 in the November-December rally he predicts will come. The Dow closed Tuesday at 13,540.
Cramer didn't pull the estimate "out of thin air," he said, but rather arrived at it after doing a bottom-up analysis of all the 30 stocks in the Dow by determining what price each stock is likely to reach by the end of the year. Here is his analysis ofall DOW stockswhich include MSFT, IBM and GE.
Cramer’s Machinery Stocks: Did we really think that Deere (DE) wouldn't come roaring back? Are we really worried about Caterpillar (CAT), with infrastructure running again (Foster Wheeler almost at par!)? Shouldn't we be buying Parker Hannifin (PH) before it gets to par and piling into Ingersoll Rand (IR), which, unlike the last time it was at this price, now has a fabulous non-housing story?
I mention all of these because people aren't understanding that machinery is the new tech, the new pharma. Here are his favorite Machinery Stocks.
Cramer’s Drilling Stocks: Cramer has been on the drilling sector for some time now and he reiterated his bullish position this past week, asking, “can the market get enough Transocean (RIG)? Schlumberger (SLB) acts like it is 1983. I see no signs of this abating because the bias is that if the Fed has to do something, it will cut, but in the meantime the growth overseas and the need to find new oil in deeper places -- something we have been saying for a year now in these pages but is finally being listened to -- is just unabated. And driving these stocks higher all of the time. Jim’s favorite Drilling Stocks include BHI.
Cramer’s Retail Stocks: Jim has been focused on retail stocks for awhile now and he now gets it. At first, “it made so much sense. Gasoline at $3 and change. People feeling poor. The endless "my house is not going up in price" rap. And the maxed-out credit story that has been around for decades.” But then “it turns out that much of the weakness we saw in mainstream retailers was weather- and calendar-related. Now we are back to a little more normal situation, and while it's not great, it isn't as bad as the stocks indicate.” Cramer then gave us his
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