Market Bottom? Who Cares - Cramer's Mad Money (5/16/08)

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday May 16.

Cramer looked at both sides of the issue of whether or not the market has bottomed and has decided that it doesn’t really matter. On the one hand, he pointed to the PHLX Housing Sector Index which has not declined even as home builders have been reporting terrible numbers. He cites this as a reason to believe the market has bottomed. Bulls are also discussing stronger than expected retail sales and the closing of the Clear Channel deal as reasons to be optimistic. On the other hand, lack of consumer confidence, unemployment the falling dollar and declining housing prices in many areas of the country give credence to the idea that he market has farther to fall. Cramer says he will pay attention to Home Depot and Lowe’s earnings this week to gauge the health housing and the consumer, but added, bottom or no bottom, he is going to continue to tout the bull markets; international infrastructure, oil and natural gas, mining and minerals, defense stocks and “new technology. "From where I'm sitting the debate is mute," said Cramer. "Bottom or no bottom, I'm sticking with what works."

Speculation Friday: Mas Tech (MTZ)

The Street often fails to see the hidden potential of companies, and MTZ is a prime example, said Cramer. Currently 74% of MTZ’s revenue is derived from infrastructure for the telco an energy sector, and the company will continue to profit from the rise of natural gas. Although it may be caught in the crossfire in the battle between telco/satellite versus cable, Cramer thinks its budding wind business, which currently produces 17% of its revenues will overtake its other segments. Cramer predicts MTZ’s wind segment will double and its $1.4 billion backlog is a guarantee of growth. He would buy MTZ while it is still under $11 a share.

Google (GOOG)

Cramer kicked himself last month for missing a huge move on Google and blamed the gaffe of faulty Comscore data which gave only domestic click-through data. ComScore’s chairman, Gian Fulgoni, says the company is in the process of developing its overseas measurement tool, and said Google’s refusal to give guidance caused a hasty scramble for incomplete information. Google’s domestic advertising business was flat, but overseas internet advertising is “on fire.” The entire industry was up 30% from 2006, and will continue to grow as merchants go online to sell their wares.

Packaging Corp of America (PKG)

Cardboard packaging might not be the most interesting business, but boring can mean money, said Cramer. A growing supply squeeze in the industry may spell an upside, especially since International’s output was decreased by a factory explosion and the company has acquired Weyerhauser’s containerboard business. Cramer prefers PKG because it uses cheaper materials than other companies, and although it is not a green play, it uses very little costly recycled paper. PKG also uses little natural gas in its production and is buying back 4% of its shares. Cramer predicts the stock will move to $33 from $25.

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