SAC Fund Manager Steinberg Guilty in Insider-Trading Case
Jim Cramer: J.C. Penney, First Marblehead, Garmin
(Corrects company names in the 10th and 13th paragraphs.)
J.C. Penney Co. was recommended by CNBC host Jim Cramer on his ``Mad Money'' television program because the retailer is expected to climb as investment funds snap up the stock before the end of the quarter next week.
J.C. Penney, the third-largest U.S. department-store company, is among three stocks that are the ``most likely to get marked up as the quarter closes,'' said Cramer, a market commentator and former hedge-fund manager.
``Every fund out there wants to show investors that they own winners when the quarter ends,'' he said. Also ``J.C. Penney is the most consistent retailer in the country. They've been introducing high-end concepts, they have mid-range offerings and had an 11 percent increase in same-store sales in May.''
The other two stocks Cramer expects to rise in the next week are First Marblehead Corp. (FMD), which helps banks and universities provide student loans, and Garmin Ltd. (GRMN), a maker of satellite-navigation devices for cars.
First Marblehead has ``has a terrific business model, no debt and are miles ahead of the competition,'' Cramer said. ``The student loan market is growing and this stock is still cheap.''
Other stocks recommended by Cramer include Palm Inc., maker of the Treo e-mail phone, and Research In Motion Ltd. (RIM), maker of the Blackberry wireless e-mail device. Both companies report earnings next week. Cramer also recommended Sears Holding Co., the biggest U.S. department-store operator, and EarthLink Inc. (ELNK), the fourth-largest U.S. Internet service provider.
Panera Bread, General Mills
Devon Energy Corp. (DVN), the second-largest independent oil and natural-gas producer in the U.S., was recommended by Cramer, who described the company as the ``best run domestic oil and gas play I know.''
His recommendation follows the announcement earlier today that Kerr-McGee Corp., the U.S. oil and natural-gas producer agreed to be bought by Anadarko Petroleum Corp. for $70.50 a share in a transaction valued at about $21 billion.
Cramer recommended that investors hold a ``high growth stock'' like Panera Bread Co. (PNRA), a ``steady growth stock'' like General Mills Inc. (GIS) and a ``value stock'' such as Walter Industries Inc. in their portfolios.
``Panera Bread has had consistent growth,'' Cramer said. ``I like this high growth story better than Starbucks.'' The company was raised to ``sector outperform'' from ``sector perform'' by analyst John S. Glass at CIBC World Markets yesterday.
General Mills, the second-largest cereal U.S. maker, which also makes Green Giant frozen vegetables and Yoplait yogurt, is ``known as Generous Mills on Wall Street because of its bountiful dividend,'' Cramer said. The company is ``as close as you can come to a blue chip stock in this volatile market.''
During the ``Lightning Round'' of responding to viewers' questions, Cramer recommended Boeing Co. (BA), Best Buy Co., Circuit City Stores Inc., Coherent Inc. (COHR), Newell Rubbermaid Inc. (NWL), The Pantry Inc. (PTRY), Serologicals Corp., Rio Tinto Plc (RIO), BHP Billiton Ltd. (BHP), Basic Energy Services Inc. (BAS), Fluor Corp. (FLR), Foster Wheeler Ltd., and Schering-Plough Corp.
He told viewers to avoid Chipotle Mexican Grill Inc., Sirius Satellite Radio Inc., Pactiv Corp., AT&T Inc. (T), Sprint Nextel Corp. (S), Verizon Communications Inc. (VZ), Alliant Techsystems Inc. (ATK), Dell Inc. (DELL), The Shaw Group Inc. (SHAW) and Merck & Co.