Cramer's Mad Money Daily Recap 8/4/05 - Chesapeake Energy

[Thierry Martin]

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Cramer's Mad Money Daily Recap 8/4/05

Back Up the Truck on Chesapeake Energy

Cramer talked on the phone with Chesapeake Energy (CHK) CEO, Aubrey McClendon.

Cramer called the company the best and biggest natural gas pure play, and said he would back up the truck on the stock and buy it.

Terex is not best of breed - but a good trade

Terex (TEX) reported a great quarter Wednesday. Why own Terex instead of Caterpillar (CAT), which is best of breed?

Cramer has no doubt that Caterpillar will beat Terex over the next five years, but for the next six months, Cramer thinks Terex works as a trade.

Eight more worst of breed stocks that could work

Rite Aid (RAD), Tenet Healthcare (THC), Doral Financial (DRL), Agco (AG), AK Steel Holding (AKS), Southern Peru Copper (PCU), Alon USA (ALJ) and Parker Drilling (PKD).

These stocks are only for a trade.

Insider Selling - Not an indicator you should follow

Cramer advised against selling based on services that alert traders shares are being dumped.

"Insiders sell for a host of reasons: taxes, divorce, lifestyle or just good financial planning," Cramer said.

"Insider selling data would have kept you out of the hottest tech stocks in the 1990s -- EMC (EMC) during the 1990s, for example -- and the hottest biotech stocks in the last five years," like Genentech (DNA), Cramer said.

You would have missed huge runs in Centex (CTX), KB Home (KBH), Pulte Homes (PHM), Lennar (LEN), and Toll Brothers (TOL), the biggest insider seller, which climbed 280%.

The Lightning Round

Bullish - Intel (INTC), Motorola (MOT), Fortune Brands (FO), Cisco Systems (CSCO), Dick's Sporting Goods (DKS), National Oilwell Varco (NOV), Public Service Enterprise (PEG), Dominion Resources (D), Stride Rite (SRR), GlobalSantaFe (GSF), PetroChina (PTR), Chemed (CHE), Wyeth (WYE), CMGI (CMGI:Nasdaq - news - research), XTO Energy (XTO), IntraLase (ILSE), Canon (CAJ), Best Buy (BBY), Skyworks Solutions (SWKS), and Con Edison (ED).

Bearish - St. Mary Land & Exploration (SM), NutriSystem (NTRI), AU Optronics (AUO), OmniVision Technologies (OVTI), Affymetrix (AFFX), ViroPharma (VPHM), Dynamic Materials (BOOM), Dycom Industries (DY), Affiliated Computer Services (ACS), Ansys (ANSS), Meridian Resources (TMR), Quanta Services (PWR), Gentex (GNTX) and Presstek (PRST).