Cramer: Dow Industrials
N E W Y O R K, Jan. 18 -- At the beginning of each year I like to take a fundamental look at the 30 stocks in the Dow Jones industrial average. This year, with the Fed on the team, many stocks look more attractive than ever.
So here's the quick and dirty:
AT&T: Numbers here are way too high and I don't care about this restructuring. Get Armstrong out of there and I'll listen. Keep wireless, sell everything else if you want to break up the parts. Business and long-distance are just plain awful no matter how you dice it.
Alcoa: Perfect stock after a second ease. Not as well run as it was under Treasury Secretary-designate Paul O'Neill, but Alcoa is a market-share giant and can coin money when the economy gets hot. Much better company coming out of a slowdown than it ever has been because of the acquisitions it made this time around.
American Express: People are worried about earnings, yet I think this company is a pure play on the Fed easing. We may end up missing Golub, but Chenault impresses as someone who can get the job done just as well. Seems like a buy to me.
Boeing: Last year this one was my favorite, but now it seems a little long in the tooth. I wonder if the easy money hasn't been made, although I respect the fact that airplane cycles generally last longer than this one has so far. Hold it.
Caterpillar: Premier cyclical that does best after second ease, according to the textbooks. This time will be no different. Well-run company, good market-share leader. Needs stronger economy and will get it.
Citigroup: One of the best names in the Dow, with earnings that held up surprisingly well during a period of securities slowdown. Best pick to double in the averages.
Coca-Cola: Still overvalued and really is just a play on the Fed not easing fast enough. I don't want to make that bet.
Disney: Stock doing well coming off the first ease. Seems like it could rally back to $40 but needs to see some sort of expense control and a clear No. 2 to Eisner to impress me. Wouldn't hurt to have a new cartoon blockbuster, and without it, I don't think the stock goes past $40. Already had a nice run.
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