Cramer's Mad Money Daily Recap 8/5/05 - Bite the Bullets

[Thierry Martin]

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Cramer's Mad Money Daily Recap 8/5/05

Bite the Bullets

Baidu.com (BIDU) climbed $95, or 354%, to $123.06 on its first day of trading Friday. Trading at 1,000 times earnings and 128 times sales, Cramer said - "Sell Sell Sell!"

After selloff days investors should buy companies that announced better-than-expected earnings the day before, like Alliant Techsystems (ATK). Cramer issued a buy on this stock before it shoots through $80.

Oil Plays

National Oilwell Varco (NOV) was also down, even though it posted terrific earnings. People could have made money in National Oilwell and Baker Hughes and Haliburton (HAL) if they had paid attention to the recent rig-count figures from Baker Hughes (BHI).

Cramer said that if these stocks go down next week, investors should back up the truck and load up.

Homebuilding Stocks

Toll Brothers (TOL) got up to 16 times earnings, a bit extreme. However, Cramer said, "I would not shy away from the homebuilders like Lennar (LEN), selling below eight times earnings."

Phoning for Domino's Pizza

Cramer spoke with David Brandon, CEO of Domino's Pizza (DPZ). Cramer said investors should own Domino's. It has a lot of reward and not a lot of risk.

The Lightning Round

Bullish - Bristol-Myers Squibb (BMY), Time Warner (TWX), Grey Wolf (GW), Infosys Technologies (INFY), Flir Systems (FLIR), Apache (APA), St. Jude Medical (STJ), Goodrich Petroleum (GDP), Oil States (OIS), Sears Holdings (SHLD), Gold Kist (GKIS), Automatic Data Processing (ADP), Boyd Gaming (BYD), and Aqua America (WTR).

Bearish - Citigroup (C), Revlon (REV), Tempur Pedic International (TPX), Foundry Networks (FDRY), Merge Technologies (MRGE), Ceradyne (CRDN), Agere Systems (AGR:NYSE - news - research), DryShips (DRYS), Lloyds (LYG:NYSE - news - research), Adolor (ADLR), Kulicke & Soffa (KLIC), Emulex (ELX:NYSE - news - research), Metris Companies (MXT), Travelzoo (TZOO), Coldwater Creek (CWTR), and Dreamworks Animation (DWA).