March 6th - BGC PKG BP

Cramer's first segment was about rumors and how they can effect stock prices. He named some financial stocks, but did not come out and make any recommendations.

He then moved on to suggest stocks that reported strong earnings before the big correction. Today is day 1 of a 4 day series about finding these stocks. Today's pick was General Cable Corp. (BGC)

Closing Price: $49.52
After Hours High: $ 50.25
Percent Increase at High: 1.47%
After Hours Most Recent Price: $ 50.10
Percent Increase at Most Recent Price: 1.17%
Sector: Industrial Goods
Days to Cover: 5.2
Short %: 8.93 %
% Held by Insiders: 0.24 %
% Held by Institutions: 94.40 %
50 Day Moving Average: $45.98
200 Day Moving Average: $39.12
Average Price Drop for Sector: 3.2%

Prior to Cramer's recommendation, the stock had settled at the middle band (or 20-day SMA). The strong earnings and big market sell off has created a great deal of volatility in the stock and thus has created a large range between the top and bottom bands as seen in the chart below. With the top band at $55.60 there is plenty of room on the upside. The market is a little tricky right now to be shorting Cramer's picks though where any day can be up or down big, and I think Cramer's picks can do the same.

Finally Cramer introduced the 4% club for stocks that all have dividends that are currently at least 4%, which are favorable stocks in a down market. The 2 stocks on the list are Packaging Corp. of America (PKG) and BP plc (BP)

Closing Price: $24.77
After Hours High: $ 25.56
Percent Increase at High: 3.19%
After Hours Most Recent Price: $ 25.26
Percent Increase at Most Recent Price: 1.98%
Sector: Consumer Goods
Days to Cover: 1.7
Short %: 1.10 %
% Held by Insiders: 0.77 %
% Held by Institutions: 77.90 %
50 Day Moving Average: $23.17
200 Day Moving Average: $22.59
Average Price Drop for Sector: 4.8%

PKG found support at the middle band and bounced off it today during regular hours trading. After hours has taken the stock higher, but not all the way up to the top band at $26.18. The after hours increase isn't great here as this segment did focus on "safer" picks that pay dividends. Again, hard to say what the market might do, but taking note of the overseas market early tomorrow morning will probably give a good indication of where we might head. A positive outlook for the open would be a signal for me to stay away from shorting and vise versa, but keeping in mind that Monday the market opened red but rebounded, so taking profits on shorts quickly would be a good idea.

BP
Closing Price: $59.53
After Hours High: $ 60.00
Percent Increase at High: 0.79%
After Hours Most Recent Price: $ 59.93
Percent Increase at Most Recent Price: 0.67%
Sector: Basic Materials
Days to Cover: 1.0
Short %: 0.14 %
% Held by Insiders: 0.17 %
% Held by Institutions: 41.80 %
50 Day Moving Average: $63.91
200 Day Moving Average: $67.11
Average Price Drop for Sector: 5.5%

And too small an increase with BP to bother with in my opinion.