RTX Corporation (RTX)

[dr_praeses]

8/2/07 Jim Cramer's "Mad Money"

During Wednesday's "Mad Money" show, Cramer evaluated the Dow's recent volatility, amid reverberating subprime mortgage quality concerns, and incessant rumors of additional mortgage lender, homebuilder, and fund defaults. Cramer: After an up day, I'm here to inform you about the downside possibilities: you need to reposition yourself - use this strength - to get out of problematic plays and losing sectors [banks/brokers, home builders, mortgage-related entities]. Regarding housing, the home builders will not be able to sell the amount of homes they've built; also, home owner defaults will propel the failure of at least 1 major bank, Cramer predicted. And the bond business backed by these mortgages is done too, Cramer said, which will hurt brokers' earnings estimates. Of course, if the Fed cuts interest rates, all of the aforementioned doesn't apply, but Cramer does not think the Fed will lower rates any time soon. Next, Cramer underscored, that money can still be made in this market, even if the worst case scenario prevails, if you're positioned right. Cramer reiterated his Buys for: RTN, AGN, UA, GRMN, LULU, and CMG. In the Lightning Round, Cramer was bullish on: GLW, LMC, NYX, [Note: Cramer underscored that, so far, he has been wrong about NYX, but he is sticking with his Buy recommendation; PRU, HON, RIO, BHP, AAPL [ but be prepared to take some profits with AAPL when it hits $145 ; RRI and CHRD. In the Lightning Round, Cramer was bearish on: NUE, GLDD. In the Sudden Death Round, Cramer had the following recommendations - Buy: BWP. Sell: ZGEN.