Cramer's Mad Money Daily Recap 8/15/05 - Stock of the Week

[Thierry Martin]

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Cramer's Mad Money Daily Recap 8/15/05


Stock of the Week - Dick's Sporting Goods

Dick's Sporting Goods (DKS) is the pick of the week. It's "the best story you have never heard of," Cramer said.

Companies such as Gap (GPS), with more than 3,000 stores, and Foot Locker (FL), with more than 3,900, have saturated the market. Home Depot (HD) has more than 1,800 stores. But Dick's, with 234 stores, is nowhere near saturation. If Dick's opened just another 1,000 stores, the company would have 400% potential store growth.

Another good thing about Dick's is that what's not bad for Nike (NKE), Reebok (RBK) and Columbia Sportswear (COLM), like falling margins, doesn't matter to Dick's. Dick's makes money selling their items, not making them.

Cramer reminded investors that, if they buy the stock in the after hours, to use a limit order as the stampede can cause the stock to trade artificially higher. Do not use a market order, Cramer warned.

Don't lose faith in tech

Dell (DELL) messed up on pricing, but sold record numbers of computers. Cisco (CSCO) scared investors with conservative guidance. However, Intel (INTC) and Microsoft (MSFT) should be bought anyway because the more units Dell sells, the more Microsoft and Intel make. Cramer said that any declines in tech should be seen as a gift.

Lowe's

Lowe's (LOW) reported better-than-expected earnings Monday. If you are looking for pin action after Lowe's great quarter, you should look at Black & Decker (BDK), Fortune Brands (FO), Whirlpool, Masco (MAS) and American Standard (ASD).

Cramer said that he's not crazy for recommending cyclicals. Oil prices and gasoline prices are going up, but Europe has been dealing with high gas prices for a long time, and American companies should be able to cope with rising prices as well.

Sysco Foodstuffs

Cramer spoke with the CEO of Sysco (SYY) on the phone. Richard Schnieders said their huge distribution centers allow the company to minimize the impact that rising oil might otherwise have. Cramer said that he would do a "'mon back" on the stock.

Lightning Round

Bullish - Genentech (DNA), Lucent Technologies (LU), Target (TGT), American Science & Engineering (ASEI), Enterra Energy (EENC), XM Satellite Radio (XMSR), Energy Partners (EPL), Chesapeake Energy (CHK), Charles Schwab (SCH), Whirlpool (WHR), United Technologies (UTX), Syneron Medical (ELOS), Logitech International (LOGI), Pulte Homes (PHM), Skyworks Solutions (SWKS), Allscripts Healthcare (MDRX), Psychiatric Solutions (PSYS), Gold Kist (GKIS), and Smith & Wesson (SWB).

Bearish - Compuware (CPWR), Clear Channel Communications (CCU), Convergys (CVG), North Fork Bancorp (NFB), Leucadia National (LUK), BHP Billiton (BHP), Juniper Networks (JNPR), Given Imaging (GIVN), TLC Vision (TLCV), and Sony (SNE).

[jthree67]

i didn't take Cramer's comments tonight on Lucent as bullish. Sounds to me like he is running out of patience with Patricia Russo as are many other stock holders in light of Nortel's run up.

[Thierry Martin]

I agree he is running out of patience, I don't think he has completely run out of it yet, though.

[KenBro]

Did I hear Ski-Daddy mention Cisco Systems (CSCO) wasn't in the Best Buy's (BBY) on the 8-15 show?

Daddy needs a new pair of glasses next time he trips over a stack of LINKSYS Routers/Hubs and switches at his local Best Buy.
I did my home work DADDY!!!

Linksys Acquired by Cisco Systems, Inc.
In June 2003, Cisco Systems, Inc., the world leader in networking for the Internet, acquired The Linksys Group, a then privately held company.