Cramer's 'Mad Money' Recap: Expectations Jinxing Apple (Final)
NEW YORK ( TheStreet) -- Jim Cramer tells "Mad Money" viewers Monday of two $700 stocks passing in the night: Google(GOOG) going up and Apple(AAPL) , a stock he owns for his charitable trust, Action Alerts PLUS, going down.
The expectations for Apple have gone bonkers, Cramer said. After its stock run-up, it's only natural for the stock to come back a bit. People are selling on the stories Cramer says are not true.
Meanwhile, Google stock is on a stealth rally. It's an easier buy, he said. Google is a cheaper, better stock. As for Apple's maps in its new phone, Cramer likened it to Microsoft (MSFT) stifling other products that were better by bundling its software into Windows.
Google is a machine, not a man, and not beholding to one person, Cramer said. Whereas when Steve Jobs was alive, people bought based on that.
Upon Further Review
Conagra says commodity costs can be moderated and General Mills says it is losing market share. Cramer sees that as a good sign for Kellogg.
Despite Kellogg being a laggard, it has the catch-up potential to GM and Conagra. Cramer says he sees all the ingredients for an upside surprise when Kellogg reports Nov. 1. The new CEO has been working on pricing and new products to turn the company around, and Cramer says it seems to be working.
The General's pain could be Kellogg's gain, he said. The time to buy Kellogg has arrived.
Executive DecisionIn the "Executive Decision" segment, Cramer looked at the online real estate market with Zillow(Z) CEO Spencer Rascoff.
Cramer wondered whether Zillow's stock is too hot to handle. It's up 98% in a year. The online real estate site's stock momentum is holding up, he said.
Rascoff said his company has about 1% of realtors' annual advertising budget and his company's investors see the size of the market potential.
Zillow's revenue rose 75% last year, Rascoff said. Real estate agents collect about $60 billion in commissions and they turn around and spend $6 billion to $10 billion a year on advertising. He's optimistic that ad dollars will follow eyeballs to the most popular online real estate site.
Zillow is clearly the best story in the group, Cramer said, urging viewers to listen to the company's conference call so they don't come back later and say, "Jim, why didn't you tell me this?"
In the second "Executive Decision" segment, Cramer looked at retail through the eyes of the Ascena Retail Group (ASNA) , or the artist formerly known as Dress Barn.