Cramer's Mad Money Daily Recap 8/3/05 - Diversified Judge?

[Thierry Martin]

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Cramer's Mad Money Daily Recap 8/3/05

Is Judge Robers Diversified?

John Roberts, the Supreme Court nominee, had his financial statements made available on Tuesday. Cramer examined the federal judge's portfolio.

Roberts also has close to 20% of his discretionary portfolio in XM Satellite Radio (XMSR).

Roberts, who owns a small amount of EnCana (ECA), needs to pick up more oil names.

Roberts has 4% of his portfolio in health care. He has some Merck (MRK), Pfizer (PFE), and Johnson & Johnson (JNJ). Cramer said Roberts should buy some UnitedHealth Group (UNH). Roberts doesn't have any biotech. He should own Genentech (DNA), Cramer said.

Roberts doesn't own any defense names. Cramer says you have to have some health care, oil, and defense names in a good portfolio.

Cendant (CD) Highlighted

Growing earnings at a double-digit pace and selling well below a market multiple, Cendant's travel and leisure business has never been stronger.

Companies left for dead after everyone has given up on them create the perfect opportunity to to step up to the plate and buy the stocks. "Cendant (CD) will be higher a year from now," he said.

Latin American Stock Recommendations

Cramer thinks there is opportunity south of the border. Investors should buy Cemex (CX), a cement company.

Companhia de Saneamento Basico (SBS), which compares very favorably to Aqua America (WTR), is undervalued and investors should take a look at it.

Herb Greenberg Visits

Greenberg doesn't believe that the new highway bill, when it's passed, will do anything for Terex (TEX) until at least 2006.

Greenberg criticized Cramer for recommending Terex (TEX) when it is not best of breed. The honor would go to Caterpillar (CAT). Cramer said Terex shouldn't trade at the considerable discount to Caterpillar that it does and defended Terex on the grounds that it was a good trade.

Cramer said he likes both CVS (CVS) and Walgreen (WAG), but agreed that Walgreen is the better play.

The Lightning Round

Bullish - MetLife (MET), Life Time Fitness (LTM), Netease.com (NTES), Phelps Dodge (PD), Harris (HRS), Autodesk (ADSK), Quicksilver Resources (KWK), El Paso (EP), SanDisk, PPG Industries (PPG), Texas Instruments (TXN), Williams Companies (WMB), Texas Industries (TXI), TXU (TXU), Piedmont Natural Gas (PNY), Smith & Wesson (SWB), and Caremark (CMX).

Bearish - Colgate-Palmolive (CL), Tupperware (TUP), WebMD (HLTH), Coca-Cola (KO), Syntroleum (SYNM), Pacific Sunwear (PSUN), Progressive Gaming International (PGIC), Liberty Media (L), Packaging Corp. of America (PKG), Mueller Industries (MLI), J.P. Morgan Chase (JPM), Wind River Systems (WIND), and Boston Scientific (BSX).

[Gordon Gekko]

Thierry - just wanted to thank you for the site. I don't always get to see the show and the recap is much appreciated.

I did catch a bit of the show this evening though. Cramer's badinage with Herb Greenberg. Herb disagrees with Cramer's take on Terex (TEX for the homegamers). I did not jump into this one but it'll be interesting to see what happens tomorrow, nevertheless.

[Thierry Martin]

Thanks for the kind words. I just noticed from reading your post I forgot the Herb Greenberg segment, just added it in.