Investors should stay patient and take advantage of this week's stock market volatility, CNBC host Jim Cramer said today on his ``Mad Money'' television program.
Cramer, a market commentator and former hedge-fund manager, said some stocks that declined this week were the result of investor panic and not sound judgment. AT&T Inc. (T:US) and H.J. Heinz Co. (HNZ:US) are examples of stocks that are likely to rise after declines this week, Cramer said.
Investors should prepare for downturns by making a list of attractive stocks with target prices they will pay, Cramer said. The forethought will allow them to take advantage of ``frenzied fools'' that are selling when the market drops, he said.
``You'll be able to take advantage of other people's panic and misfortune,'' he said.
Cramer recommended buying or holding Nymex Holdings Inc., Analog Devices Inc. (ADI:US), Devon Energy Corp. (DVN:US), Johnson Controls Inc. (JCI:US), Sears Holdings Corp. (SHLD:US), Qwest Communications International Inc. and American International Group Inc. (AIG:US) in response to viewer questions during the show's ``Lightning Round'' segment.
During the show's ``Sell Block'' segment, Cramer recommended viewers sell shares of Starbucks Corp. because its last quarterly results showed ``softness'' and because it is facing increased competition from companies such as Dunkin' Donuts Inc.
Cramer recommended viewers buy American Ecology Corp. In an interview, Chief Executive Officer Stephen Romano told Cramer that the hazardous waste disposal company would benefit from increased regulation because more companies would hire them.
Cramer said he owns Sears and American International Group for his charitable trust.
To contact the reporter on this story: Adam Satariano in San Francisco at Asatariano1@bloomberg.net.
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