September 8th - KMB

Cramer started out.....wearing a diaper....yes a diaper and recommended Kimberly-Clark Corp. (KMB). The stock closed today at $64.00, which I consider to be too expensive for shorting off a Cramer recommendation due to the high price which tends to reduce the instant demand. Its been a while since I have given my opinion on why the demand is less, so here goes. I figure the demand is less because who really wants to buy 20 shares or so if they are a small time home gamer (typically the people who are buying the picks without thinking I assume). Cramer went on to say the reason why he is picking this stock is because of oil prices coming down which is part of diapers.

Cramer started a new segment called "Lets go to the tape" where he looks at recent moves in a stock. He looked at Deere & Co. (DE) and walked through how the stock went down 3 and up 10 very quickly. The reasons for the rebound were 1) the short position and quantity of put option buys 2) the cutting of guidance due to slowing construction 3) the fact that DE is not a housing play and slowing construction doesn't make it levered to housing 4) UPOD-under promise and over deliver 5) the fact they had very low inventory on their farm equipment. The long term investors then came in to buy the stock based on the same news the short term players were using to bet against it. This caused a short squeeze and forced the stock up.