Investment

» PEIC - Apple: Real Money Radio Recap, Oct. 19

Thursday October 19

Taking a Bite Out of Apple (AAPL) - Cramer thinks that "the most money being made today" is in Apple and he doesn't believe the stock is heading down any time soon. Although Sandisk (SNDK) is coming out with its own "iPod killer," Cramer does not think that anyone can top Apple's product in spite of cynicism in the media. When the company reported that performance was "dramatically better than expected" the stock jumped four points, and Cramer expects another 20 point jump. He compares negativity about Apple to excessive bearishness in housing.

Nobody's Perfect: Ebay (EBAY) - Cramer confesses that he got Ebay wrong because he was focusing on its overpaying for PayPal and Skype and did not have any confidence in CEO Meg Whitman. Looking at Ebay's stronger points, Cramer concludes that the company is "indestructible" and is "free from competition and ... it will go higher." Not even Yahoo! (YHOO), Amazon (AMZN) and Google (GOOG) can imitate eBay, according to Cramer.

McGraw-Hill (MHP) - Although Cramer has been bearish on media "without reservation" MHP is an exception, he says, because of the diversity of its businesses. In spite of the fact that it is at a 52-week high, Cramer would pick it up as a best-of-breed in media and believes it will keep going up.

Cramer on Demand: Genentech (DNA) - The stock listeners most wanted to discuss this week is Genetech which has Avastin, a "wonder saving drug" according to Cramer who sees a risk/reward of 15 up and one down.

Bullish calls:

Harley-Davidson (HOG): Cramer says that HOG is an example of a stock the Street hates because they do not think the consumer will spend a lot of money for motorcycles. However, he points out that since this is a best-of-breed stock, it will do well regardless of the economic climate.
Best Buy's (BBY): Cramer likes BBY's management
McDonald's (MCD) AT&T (T), Continental Airlines (CAL) and JC Penney (JCP): Cramer says that all of these stocks are doing "terrifically."

Neutral/Bearish calls:

Circuit City (CC): Although CC sells the most big-screen TVs, Cramer says that its management is not bankable.
Red Hat (RHAT): Cramer says that this company has no credibility, difficulties with management and a slow rate of growth. He would switch to Apple.

-- posted by PEIC

» PEIC - Mad Money Oct. 24

Number Crunching: Google (GOOG), Starbucks (SBUX), Wholefoods (WFMI), F5 Networks (FFIV), Akamai Technologies (AKAM)

Cramer tells investors not to be intimidated by Google's $471 price tag because he predicts it will go at least to $560. To prove his point, he compared Google with other companies to see the results. Google, with 14-per-share earnings and 34% growth would be at $742 if he applied Starbuck's impressive 21% growth and and 53 times per-share earnings. Wholefoods, which outranks other retailers in growth and has double-digit same store sales would bring Google to $644 with it numbers. Google would be sitting at $546 with F5 Networks' numbers, at $784 with Akmai's data and at $826 with Hologic's earnings and growth. The one question that remains, according to Cramer, is why Google isn't higher.

Netflix (NFLX) and Blockbuster (BBI)

After reporting a great quarter, Netflix is a buy at $27.37 according to Cramer who confesses, "I've been consistently negative on Netflix ... I got this so completely wrong." Cramer said it was a mistake to think that Netflix with 40% growth could be beaten by Blockbuster's internet business. While video on demand could pose a threat to Netflix, it is a few years away and the company is far from its saturation point.

Nokia (NOK), Ericsson (ERIC), Motorola (MOT) and Sprint Nextel (S)

For long-term investments, Cramer recommends looking for cheap cell phones which will be popular in emerging markets. Cramer likes Nokia, the "biggest cell phone maker on Earth" more than Motorola which he says has a "measly" dividend and is "unreliable" because of its deals with Sprint Nextel. ERIC has slow growth and a high multiple and Cramer wouldn't consider buying it. Only 10% of Nokia's products are sold in America, the phones are cheap and as the middle class in India and China grows, "they're going to be

CEO Interview: Eli Harari of SanDisk (SNDK)

Eli Harari commented that the company's 15% selling price decline was a surprise; "We delivered record revenues and beat estimates, and our fundamentals are as strong as ever. This was very puzzling." However, he added that the one bright spot of the decline was that it brought the company's costs down which is "healthy for consumer electronics." Cramer asked how SanDisk makes any money on its MP3 Players since they are so inexpensive, and Eli Harari replied, "We can make money because we manufacture the flash memory" without using a middle-man, "that's why it's such a great value."

Mad Money Lightning Round Picks, Oct. 24

Bullish calls:

Radvision (RVSN): 'I like RVSN. I think they're going to have a good quarter.'
Apple (AAPL): 'I think that AAPL is headed to $100 ... it has a great quarter.'
Arena Pharmaceuticals (ARNA): 'ARNA is going higher when they report. Don't forget, they have an anti-obesity drug. And they have a drug for diabetes.'
Continental Airlines (CAL): 'We broke all the rules ... we recommended the stock at $27. We took some off the table; we're letting the rest run. CAL had a great quarter. There's no new capacity coming on. This company is disciplined; this company is well-run. This company is the best-managed airline in America! Stick with CAL!'
1-800-Flowers.com (FLWS): 'I liked this stock at a lower level. I can't back away from it now at $5 smackers; it's just too darn cheap. Now, the company does have an 88x multiple on this year; a 26x on next year. I think $5 bucks is a pretty decent spec frankly.'
DivX (DIVX): 'Take off a quarter of that (gain) right here, right now.'

Bearish calls:

XM Satellite Radio (XMSR): 'I think the quarter's going to be bad, to be honest. They need to be able to make some deal. These two [XMSR and Sirius Satellite Radio]. One is going to bring down the other. I have been begging these companies to combine.
Dow Chemical (DOW): ' ... is not going to have that great of a quarter, because of the big natural gas costs. Those are down - it won't be bad.'
Warner Chilcott (WCRX): 'Immediately, they had this generic issue. Until they come on, and be a man about it, I cannot recommend that stock.'
Todco (THE): 'I see a little rally, because it's getting cold around the country. It is too abstruse. I think that you've got to stick with a major here, my friend. That one is too hidden, too low down on the food chain.'
Southwestern Energy (SWN): ' It used to be my favorite natural gas play, and then natural gas plummeted. I got off the horse at the wrong time. It is, I think, too expensive. I don't think natural gas is going all the way up again.'
Ensco International (ESV): ' Why does everyone want these stocks? We have one up day, and everyone is back in them! You ought to ring the register in ESV.'

Miriam Metzinger

-- posted by PEIC

» PEIC - Mad Money Oct 25 - $597 Google! (now @ $486.60)

Amazon's (AMZN)

"Amazon reported that its profits slipped by 37%, and overnight the stock jumped up 10%," Cramer said, commenting that things like this make the current market so "unfathomable." He feels that the only reason Amazon went up was due to negativity and when AMZN reported a better than expected quarter the shorts were "forced to love it." However, Cramer stands firm on his position: "I believe it will get buried." First, while Amazon's revenue was up its profits shrank and second, AMZN is too focused on becoming the internet's Walmart and is not concerned enough with managing the company, according to Cramer. Amazon is "just too big" and "way too expensive" and Cramer thinks that "people shouldn't go near it."

Brinker International (EAT)

Like Amazon, Brinker also enjoyed a bounce from excessive negativity; "the stock jumped almost seven points yesterday on a declining same-store sales number," Cramer said, adding that same-store sales make or break casual restaurants. However, the stock beat its estimates and Cramer doesn't believe that Brinker's bounce is just a short story but says its a buy. First, it reported a "hold your hand" quarter and unlike Amazon, it is an accelerated growth stock, sells at 17 times earnings, and is cheap. Cramer said that buying EAT is justified because it is cutting its costs, is generating more profit from an improved menu and may buy back stock.

Mad Mail : Sears (SHLD)

On his Mad Mail segment, Cramer told a viewer that Sears' main story is not its real estate but its cash flow.

Stocks discussed in the lightning round session of Jim Cramer's Mad Money TV program, Wednesday October 25

Bullish calls:

Google (GOOG): '... price target $597. You know that Cramer's been on the GOOG horse for as long as it's been riding. Do not get off GOOG.' (now @ $486.60)

Aircastle (AYR): '... that is the aerospace company that is working, because they lease planes. Leasing planes is one great business. 52-week high, going higher. I bless it. Don't sell it. AYR is for me.'
IntraLase (ILSE)
Palomar Medical (PMTI): 'If you're going to play lasers, I'm going to go back to PMTI. I like ILSE, but PMTI is two thumbs up, way up.'
Brocade Communications (BRCD): 'Ever since the news broke, that stock be flying, because the McData acquisition is good.'
QLogic (QLGC): 'I also bless QLGC.'
TD Ameritrade (AMTD): 'AMTD is just okay. I went over that quarter. I was disappointed with the growth. I was disappointed with the integration. I was disappointed with the execution. All this is hard for me, because I think that Joe Moglia [CEO] is money in the bank ... Moglia is worth a second chance. Let's wait until the stock goes to $15, though, before we pull the trigger.'
Gilead Sciences (GILD): 'That's worth owning. That's proprietary. Those guys deliver. That's my suggestion.'
Ford (F): 'We've been on the F horse since $6 bucks. Alan Mulalley - the guy who's running it ... He's is money in the bank He is going to turn around F.'
General Motors (GM): 'GM - We recommended it at $18; it goes to $36. We say take a little schnitzel. It's now pulled back to $34. It's going to get to $40, but it's going to meander.'
Halliburton (HAL): '... the other day we recommended HAL, and is up 10%, but it is still cheap. I'll send you to HAL.'
EuroZinc Mining (EZM): '... the ultimate call on copper. 52-week high today. If you believe in the copper thesis, like I did, EZM goes higher!'
Terex (TEX):
Caterpillar (CAT): 'I don't want to be in the mining equipment business. If I want to, I'll pull the trigger on CAT.'
NuVasive (NUVA): '.... back pain, back injury, probably the biggest market out there. NUVA is the way to play it. If you own it, I would stay in it.'
RR Donnelley and Sons (RRD): 'Commercial printing. It always is a good business. It grows at 10%. The multiple is very low. I'd pull the trigger.'

Bearish calls:

Brightpoint (CELL): 'I just don't think that they have a proprietary enough business model. It's like a wireless service... I know what they do, which is non-proprietary stuff; commodity stuff for cell phones. Sell, sell, sell!'
OraSure Technologies (OSUR): 'And one of the rules is that we will not go back to the well on a serial disappointer like OSUR.'
Bronco Drilling (BRNC): 'This group just had its move. I'm worried. We get one warm day, it gives it back. Let's look elsewhere.'
Joy Global (JOYG)

-- posted by PEIC

» PEIC - Oct 26 Mad Money Lightning Round Stock Picks

Mad Money Lightning Round Stock Picks, Oct. 26

Thursday October 26. Click on a stock ticker for more analysis:

Bullish calls:

General Motors: (GM): 'GM is resting here. It's had such a run from $18 to $36, it can't just be expected to keep going. The quarter was very good. Let it take a little nap, and then it will start going higher.'
Blue Nile (NILE): 'Another company that YHOO would do well to buy. We have liked this company, because it is a diamond company with no inventory; a tremendous play on the huge population growth in weddings and diamonds ... it's down 2% year to date. Let's reiterate my buy right now.'
Abercrombie & Fitch (ANF): ' I have felt that ANF started this great retail run; it's at its 52-week high. I reiterate, if you haven't taken any profits, you should, but the stock's still probably going to creep a little higher.'
Allergan (AGN): 'I would swap out of EYE and go right back into AGN on any weakness.'
Nokia (NOK): 'I like NOK.'
Enterprise Products Partners (EPD): 'It's a limited partnership; it's got a really good yield. 6.5%. It moves energy around. That is actually immune to any decline in energy. I always like nice and safe with 6%. So I'll give them one thumb up. Why not two thumbs up? Not a lot of growth.'
Nordstrom (JWN): 'I'll give you high-end retail, which would be JWN.'
Garmin (GRMN): 'I'm going to give you high-end growth which should actually be GRMN.'
Monsanto (MON): 'I recommended MON early on in the 30s. And then I reiterated at $46. The stock is just marking time here. I think that the seed business is really a biotech business. People think the stock's expensive. I think on its growth rate of 22%, it deserves to sell at 30x earnings ... I am sticking with MON.'
Cisco (CSCO): 'Telephone equipment... We're going to stick with CSCO, not the Chinese.'

Bearish calls:

Advanced Medical Optics (EYE): 'They just cut their forecast today; I don't want to touch that.'
Texas Instruments (TXN): '... And, when it comes to TXN, that was a disappointing quarter too. I am worried about that group, and it's probably one of the few, if not the only groups I am worried about in the whole market.'
Motorola (MOT): 'MOT reported a so-so quarter.'
Tiffany (TIF): 'When I think about all the terrific high-end plays, TIF ... disappointed me.'
Express Scripts (ESRX): 'It was just simply not a great quarter. ESRX said the profit margins could be in trouble. Again, I have so many companies where the profit margins are exploding, why do I need ESRX?'
Constellation Brands (STZ): 'I feel that STZ has been disappointing.'
Qiao Xing Universal Telephone (XING): 'Telephone equipment... We're going to stick with CSCO, not the Chinese.'
LifeCell (LIFC): 'Disappointing quarter.'

-- posted by PEIC

» PEIC - Oct 26 Mad Money In-Depth Stock Picks

ConAgra (CAG):

Conagra is a "joke" on Wall Street, says Cramer, but investors may end up laughing all the way to the bank. "There are two kinds of companies: tragedies and comedies," Cramer said. A tragic company falls all the way to zero and a comedy will keep messing up but cannot ruin itself, and this is "ConAgra in a nutshell," according to Cramer, since it keeps making brands that don't work. However, the stock has been going up since it has a new CEO Gary Rodkin to manage its brands. Analysts are skeptical, but Cramer comments that the company has always been "a good box with bad packaging" and "it is going to make people some mad money and is a turnaround story with a bright future."

Buffalo Wild Wings (BWLD):

Cramer says that it is not too late to pick up BWLD and the stock might be an even better buy at $50 than it was at $42; although this may seem counter intuitive, "it is completely and utterly true," he said. Although BWLD is not a good stock for those who are worried about volatility since the bears are after BWLD, the company will benefit from an ESPN ad campaign and its family-friendly image. In addition, the shops offer 14 different sauces and are located in 36 states, mainly in the Midwest, with plenty of room to grow, according to Cramer who concludes, "this is a story in its adolescence, if not in its infancy," he said. "It's better to be in late than not get in at all."

Brocade Communications (BRCD), CNET Networks (CNET), UnitedHealth Group (UNH)

Options backdating scandals are not devastating companies involved observes Cramer, but these stocks come back up after a temporary let-down. Brocade dipped from $8 to $4 during the scandal, but climbed back up to $5 and is now sitting at $8.64. CNET and BRCM also went up after a post-scandal downturn. Even UNH which Cramer said had "by far one of the worst backdating-option scandals" has also recovered. Investors could have used the scandal as an opportunity to buy some good stocks since "backdating options isn't something you do when business is bad."

CEO Interview: Richard Dugas, Pulte Homes (PHM)

Cramer asked Richard Dugas how homes were moving and he replied, "We're having a slowdown across the board .... I wouldn't call a bottom yet." However, Dugas added that he has seen "signs of stabilization" and said that the cancellation rate was unchanged for three months. Cramer suggests taking a little of PHM off the table since it has had a good run.

-- posted by PEIC

» PEIC - The Imminent Collapse of the Jim Cramer Show

Jim Cramer's Mad Money: The Imminent Collapse of the Jim Cramer Show: Issue # 528
By Dr. Mark Skousen, Chairman, Investment U

I predict the Jim Cramer show will bite the dust...

I ran into an exec at CNBC last week, and asked him about Jim Cramer's Mad Money show. Cramer gets so excited that he could collapse from exhaustion at any time. I asked, "Do you think he'll last another five years?" "Oh, less than that!" he confided.

If you are like me, you can take only so much of Jim Cramer and the Cramer Effect. (I personally can't watch his show for more than five minutes before getting a headache.) This wild man of CNBC is a walking disaster, who willy-nilly makes speculators millionaires one day and bankrupts them the next.

I've never seen anything like it in my 40 years on Wall Street. I'm surprised the government hasn't shut him down. A good company with solid earnings can crash in a day if Cramer pushes the "sell, sell, sell" button, or a lousy company with no earnings can skyrocket if Cramer hits the "bull" horn on the screen.

Madness, you say? Boo-yah! This pied piper is not only mad, he's an egomaniac. Harvard Law School must be terribly embarrassed by its most outlandish graduate. As a colleague on Wall Street, I certainly am...

In short, Cramer has taken Wall Street down a drunken road ever since the refined and eloquent Louis Rukeyser sadly left the scene. Lou, come back and save us from this crazy bobble-head!

What's Wrong With Jim Cramer?

Why would I oppose the likes of a Jim Cramer on CNBC? What's wrong with a little entertainment? Plenty. We here at Investment U aim to help you become better investors yourself. In each issue, we preach against relying on one financial guru for your investment decisions, or following the latest hot tip. Too many naïve investors are hooked on the likes of Cramer and his dog-and-pony show.

Instead, we urge you to become educated, and make your own investment decisions. This is fundamental. We recommend that you read the best books and attend the best conferences to learn everything there is to know about the business of investing.

One of my favorite financial books is J. Paul Getty's How to Be Rich. (Note: The title is distinct from Donald Trump's ramshackle How to Get Rich). Getty's book is an educational powerhouse of business and investment wisdom from cover to cover. He must have had Mad Money in mind when he wrote years ago in his must-read chapter "The Wall Street Investor"...

"...Get-rich-schemes just don't work. If they did, then everyone on the face of the earth would be a millionaire. This holds true for stock market dealings as it does for any other form of business activity.

Don't misunderstand me. It is possible to make money - and a great deal of money - in the stock market. But it can't be done overnight or by haphazard buying and selling. Thus big profits go to the intelligent, careful and patient investor, not to the reckless and overeager speculator.

The seasoned investor buys his stocks when they are priced low, holds them for the long-pull rise and takes in-between dips and slumps in his stride."

Let me tell you something: Jim Cramer is no J. Paul Getty.

As many of you know, for the past 26 years I've been making predictions in my newsletter. Well, I have a forecast for all you crazy Cramer fans out there. The Terror of Wall Street is about to run out of gas. Everybody is talking about it. He works up such a sweat that people are wondering when he's going to collapse and end his show for good.

First of all, I don't want to be crass, or wish anyone any ill will, but this madness has got to stop sometime - for his own good and for the good of all investors.

Anyone who has watched his show knows that Cramer goes ballistic during his 10-minute "lightning round," when listeners eager for a hot tip call in and Cramer gives a 10-second summary of the stock. During this crazy segment, his blood pressure goes through the roof.

I predict Jim Cramer will soon run out of gas and collapse in exhaustion during a future "lightning round." This gives new meaning to the word D-Day.

May Jim Cramer recover and repent of his wicked ways!

Good investing,

Mark

-- posted by PEIC

» muckdog - The Imminent Collapse of the Jim Cramer Show

In response to The Imminent Collapse of the Jim Cramer Show posted by PEIC:

Cramer may just be a sign of the end of the current bull market. To me he represents the crowd. I've noticed coworkers are talking about stocks again instead of real estate. Nobody wants to talk about that anymore.

I noted on my blog the other day having lunch with a guy who wanted some technical analysis tips. Why? He wants to trade options. Because (I'm quoting exactly) "If you buy calls before a stock goes up, you can make a lot of money!"

People feel this excitement. Cramer embodies this excitement on his show. It'll end badly again. Always does.

But IT IS an entertaining show. Carnival barking aside, Cramer knows a lot about stocks and fundamentals, then combines that into one heck of a sideshow.

-- posted by muckdog

» PEIC - Oct. 27 Mad Money In-Depth Stock Picks

Lowe's (LOW), Stanley Works (SWK), Black&Decker (BDK), Masco (MAS), American Standard (ASD) and Fortune Brands (FO)

Cramer suggests picking up LOW's since it has bottomed and has figured this out by "doing homework." First SWK, a supplier to Lowe's, reported excess inventory while BDK said the opposite. MAS and ASD also commented that business was slowing down, but while housing seems to be in a slump, FO said that remodeling is stable, and since LOW's market is mainly repairs and remodeling, Cramer thinks that LOW is on its way up. He adds that the strength in casual dining demonstrates consumer confidence.

Palomar Medical Technologies (PMTI) and Johnson&Johnson (JNJ)

Observing that "people will always pay up for their vanity," Cramer suggests holding onto PMTI which has increased since its earnings report, and adds that while those who bought it below $40 should sell some, "the best is yet to come" for PMTI. The company has recently made a deal with JNJ and Gillette to manufacture home lasers, however the shorts don't think the FDA will give its seal of approval. Cramer disagrees, and adds that even if the deal doesn't go through, the stock is still a buy since Palomer excels in products and patents and sells at just 30 times forward earnings.

Picks for the Coming Week: Deckers Outdoor (DECK), SPDR Pharmaceuticals (XPH), Sun Power (SPWR), Evergreen Solar (ESLR), FLIR Systems (FLIR), Essex (KEYW), NICE Systems (NICE), L-3 Communications (LLL) and Raytheon (RTN)

Cramer suggests taking DECK off the table and adds that, since many think the Democrats are going to win, investors should sell XPH because the party wants to cut drug prices. "If you own a big drug stock, big defense contractor or big oil stock, you should sell them this Monday and buy them back next Monday, as they will be beaten down by then," he said. Since the Democrats tend to like alternative energy, Cramer suggests looking at SPWR and ESLR. Both parties are interested in security, and FLIR,KEYW, and NICE Systems are buys as well as LLL and RTN.

Mad Mail: PF Chang's (PFCB) and Crocs (CROX)

Cramer admitted that it was a mistake to have been bearish on PFCB before its 4 point rise, and added that he was taking a long-term view of the stock. He told another viewer CROX is expanding and "the bears have been wrong and will stay wrong on this stock," he said

Lightning Round Picks, Oct. 27

Bullish calls:

WellPoint (WLP): '... had a terrific quarter this week. ... I would ... get into WellPoint, the new best of breed in the managed-care business.'
AU Optronics (AUO): 'I would ... get into AU Optronics ... because of the big-screen TV demand as the holiday season approaches.'
Intel (INTC): 'I still want to buy Intel here ... I have to eat crow and eat a semiconductor now, but I'm sticking with Intel.'
Yamana Gold (AUY): '... buy Yamana.'
Cisco Systems (CSCO): 'Opportunity is so knocking in Cisco because all technology is getting sold off because of a Goldman Sachs call.'
Best Buy (BBY):'Swap out of the Circuit City and get into the BBY.'
Game Stop (GME): 'that's gonna be better [than GigaMedia].'

Bearish calls:
Grupo Simec (SIM): 'Even though this is close to its 52-week high, I don't want to buy it. But I do not want to sell it. Let's just hold it.'
Bebe Stores (BEBE): 'Let's wait to see another month. I urge you to wait.'
Syntax-Brillian (BRLC)
Watson Pharmaceuticals (WPI): 'I have lost so much money in my time trying to buy Watson ... I want you to stay away from Watson. ... We will see the buys of a lifetime in Big Pharma.'
Simpletech (STEC): 'Another one of those flash-memory stories. ...I don't want to own Simple Tech.'
SanDisk (SNDK): 'I don't want to own SanDisk, I don't want to own Simple Tech. But if it had to be one or the other, Cramer said it would be SanDisk.'
Goldcorp (GG)
Circuit City (CC)
GigaMedia (GIGM): 'I'm gonna say wait for a pullback.'

-- posted by PEIC

» PEIC - Oct 27: Avoid Semi Stocks says Cramer

Recap of Jim Cramer's comments on Stop Trading! Friday October 27.

Atheros (ATHR) : Cramer warns investors against semiconductor stocks because of unimpressive earnings reports and the negativity of analysts and says that the evasiveness of Atheros' CEO is not a good sign. He adds that chips have had the worst performance of any sector apart from housing. "Lots of areas are rolling," Cramer said, "Why be in something that's rolling over?"

Brinker (EAT), Darden (DRI) and Denny's (DENN): Cramer generally likes casual dining plays and notes that DRI an EAT have been performing well. However, Cramer is not thrilled with Denny's which he calls a "crummy company" because its management tends to make excuses rather than improve the restaurants. "Maybe it only rains on their side of the street," quipped Cramer.

intc=21.10
amd=20.86
athr=21.87
dri=41.00
eat=46.79
denn=4.24

-- posted by PEIC

» PEIC - Nov 1 Mad Money In-Depth Stock Picks

Comeback Kid:Time Warner (TWX)

Cramer dedicated the first part of his show to celebrating the success of Time Warner, since it accomplished a major turnaround after many people had given up on the company because it was "caught up in too many agendas." Cramer gives the credit to CEO Dick Parsons for the decision to spin off 18 magazines and for making TWX a triple play of digital cable, digital phone and broadband. Cramer interviewed Dick Parsons via satellite, and when congratulated on a great quarter, he replied,"There are 87,000 of my colleagues that did it, and I just have the privilege of leading the company," Parsons said, and discussed three things going on at the company.

First, Parsons said that TWX has the best cable company in the country and that it is "poised to fly." Second, AOL has successfully made the transition from relying on subscriptions to using more advertising, and third, TWX has bought back 16% of the company in 10 months. Cramer asked if activist shareholder Carl Icahn, who has a large stake in Time Warner, wielded influence, and Dick Parsons responded that Icahn encouraged him to listen to other shareholders and was behind the buyback scheme. In regards to the possibility of spinning off Time Magazine, Parsons replied that he would "never say never... The current thinking is we want to manage our costs, make sure we have plans to move our big brands onto the Internet, but we're hanging on to this one." However, he adds that the good content is "finding its way to the internet." Concerning AOL, Parsons commented, "it appeared to be a bold move to say we are going to give up billions of revenues in subscriptions, but we thought it through." Although he acknowledges Warner Bros. has faced some challenges recently, he is prepared for a "gangbuster year." Cramer compares TWX to Comcast when it was at $34 and people had lost their faith in it. "Buy Time Warner," he said. "You will not regret it."

dentity Crisis: Lundin Mining (LMC)

Cramer says that Eurozinc Mining benefited from its "identity crisis" when it merged with Lundin Mining and became LMC. "Lundin Mining has a wider base of assets, which makes it more reliable," Cramer said, adding that it is the "single way to play the single two hottest minerals in the world: zinc and copper." When it joined forces with Lundin, Eurozinc added two mines that produce over 70 tons of zinc, a metal which is going to increase 70% as supply dwindles. The merger should make LMC a "prime takeover target" and Cramer predicts that the stock will go higher than expected.

-- posted by PEIC