Investment

» PEIC - Nov. 7 Mad Money

Playing Games: Activision (ATVI), Electronic Arts (ERTS), Sony (SNE)

Cramer says that Activision, which is the second-largest producer of video games after ERTS, is a good buy for the holidays. "Anyone under 30 understands the demand for video games," he said, and likes ATVI because it has the best titles and is an inexpensive stock. Although Playstation 3 is going to be released in December, Cramer doesn't suggest buying Sony which makes the console, and he mentions that Nintendo's platform Wii is also set for release. Although he usually is more confident about video-game distributors than makers, Cramer thinks that ATVI's "Call of Duty 3" and "Guitar Hero II," due for release on Wednesday, will be "monster hits." Cramer calls ATVI a "triple holiday season buy" but warns of the company's "lumpy quarters" and shortfalls, and considers it a trade which should be sold before the end of the holidays. He reminds investors to use limit orders when buying the stock.

esearch in Motion (RIMM) versus Garmin (GRMN)

Cramer says that one advantage of tech is that it is "totally insensitive" to what is happening in Washington, and the sector does not move according to business cycles. He prefers RIMM to GRMN even though RIMM has had a good run, because Blackberry is a "more necessary product" than GRMN's global-positioning systems. "RIMM has the capacity to grow, which Garmin lacks," Cramer said, pointing out new products such as the Blackberry Pearl smartphone. He also noted that RIMM is not expensive when dividing its multiple by its growth rate and should be able to keep its competitors at bay since no one has been able to produce a device to match Blackberry. Cramer suggests taking some RIMM off the table and to let the rest run.

isco (CSCO), JDSU (JDUSD), Conexant (CNXT), Lucent (LU), Comcast (CMCSA), Verizon (VZ), AT&T (T)

Cramer explains why the only stock he likes in the telco market is Cisco. He began to think that stocks in this space would make a comeback after hearing the JDSU conference call and hearing about the "possible turn" at CNXT, but Lucent's decent quarter made him skeptical. "How strong must the telco market be for Lucent to have a good quarter?" he commented. Although CMCSA, VZ and T are all improving their networks, Cramer is still wary from his experience with JDSU and CNXT whose strength seemed invincible but, after a few months, "every last one of them was up in smoke." Cramer calls CSCO "the only game in town" and wishes it were lower so he could encourage more people to buy it.

CEO Interview: Nicholas DeBenedictis, Aqua America (WTR)

Cramer asked Nicholas DeBenedictis why the stock isn't performing better and what improvements are in the pipeline. He replied that the company has been around for 100 years and although "I can't tell you what it's going to do quarter to quarter" long-term shareholders have made a good profit. "We are going to keep trying to grow earnings and revenues through accumulations of real assets ... We're going to continue buying companies, putting investments in new water quality and growing organically in areas we're in," DeBenedictis said. "The fundamentals are strong."

Mad Money Lightning Round

Bullish calls:

Boeing (BA): 'BA's now getting the orders ... Do not leave the table BA. We've liked it this far, we've like it when everyone else had turned on it.'
UAL (UAUA): 'That's the cheapest in the game. I would ring the register on LCC, and move with alacrity into UAUA.'
Level 3 Communications (LVLT): ' I like LVLT. And you know I've been doing 'mon-backs since $3. LVLT is my gift to you.'
Halliburton (HAL): I want to ... roll into a name that I have in my charitable trust that is being given away right now, for fear that the Democrats are going to be subpoena happy, and the name is HAL.'
Genentech (DNA): 'DNA is waffling between $80 and $85 ... because it didn't blow out the number, but it didn't disappoint. I think long-term it's good.'
Amgen (AMGN): ' ... if you want something now in your tank, I am giving you AMGN!'
Celgene (CELG): 'Don't forget the CELG, where my pal, Bob Hugin is blowing out the doors with Revlimid...'
Quest Software (QSFT): ' ... I would say that QSFT is one of those 20% mad money plays, and I will not bless it otherwise because it just ain't doing that good.'
Transocean (RIG): 'I give you RIG! Which has the best offshore profile.'
Bema Gold (BGO): 'I like BGO but ... I still like AUY more than I like BGO.'
Yamana Gold (AUY): ' ... ever since it was at $8 smackers, we like AUY. '
TXU (TXU): 'I think that TXU is so far enough down... Pull the trigger TXU.'
Lowe's (LOW): 'People keep dumping on my LOW. Every day, some analyst comes out and says I don't know what I'm talking about... And what's the stock done during this period? It's been inching higher. Stocks, like kids, do not lie. You stay in LOW. Buy, buy, buy!'
Atheros Communications (ATHR)
Advanced Micro Devices (AMD): 'I also really like AMD - a lot of insider buying.'

Bearish calls:

Hansen Natural (HANS): 'They're not going to report on November 9th, because of an options backdating scandal. The stock has fallen 5 and a half straight points since I told you to take it off the table. I don't know. I don't see any reason to continue to sell it, but 'don't buy, don't buy...'
Emmis Communications (EMMS): 'Welcome to the world of terrestrial radio, which everyday loses more adherence, cuts rates on ads, and is generally in a tailspin that it cannot stop. My advice is this: EMMS pays the big dividend. Nobody cares. You should sell, sell, sell! any terrestrial radio stock you have!'
US Airways (LCC): 'I would ring the register on LCC, and move with alacrity into UAUA.'
Knology (KNOL): ' I don't like that business; this is cable, bundled voice.'
Allis-Chalmers Energy (ALY): 'You know, this stock is actually on a roll. They reported a really good quarter yesterday ... No. I want to ring the register and roll into ... HAL!'
Pacific Ethanol (PEIX): 'I cannot countenance that. I have been saying that ethanol has been dead now for at least six weeks.'
Noble (NE): 'It' s going nowhere, my friend. That stock has flatlined.'
Public Service Enterprise Group (PEG): 'I think that PEG doesn't have a good enough yield.'
Atheros Communications (ATHR)
Advanced Micro Devices (AMD)
Red Hat (RHAT): 'No, man, you know we like Oracle.
Internet Capital Group (ICGE): 'No! Sell, sell, sell! It's overvalued!'

-- posted by PEIC