Investment

» PEIC - Lightning Round Picks, Dec. 22

Bullish calls:

Bank of America (BAC): 'I like the stock very much here ... good yield, nice growth path, is not going to set the world on fire. ... I say buy Bank of America.'

Level 3 Communications (LVLT): 'Some people think I run hot and cold. ... I like LVLT. ... I endorse LVLT ... gonna close a deal soon with Broadwing (BWNG). I am going to stay behind that thing with a TripleBuy.'

ConAgra (CAG): ' ... run, don't walk, into ConAgra, which is one that we nailed nine ways to Sunday.'

Quest Software (QSFT): 'The jury is still out. ... I like the core business. I want you to stick with it.'

ConocoPhillips (COP)

Denny's (DENN): 'For pecking order, I like Denny's, Brinker Darden ... '

Safeway (SWY): ' I can't get behind a supermarket other than Safeway.'

Bearish calls:

CBOT Holdings (BOT): 'We don't need to put any more money in those stocks. We are now in the 'don't buy' mode until that deal [with the Chicago Merc] closes.'

FedEx (FDX): 'I've been let down by FedEx. ... I thought you were having an Internet Christmas. ... even stuck my neck out ... We are done recommending FedEx on this show.'

Scottish Power (SPI): 'Ring the register. ... Declare victory, nice investing, well done.'

Smithfield Foods (SFD): 'I want you to sell Smithfield Foods.'

American Oriental Bioengineering (AOB): 'Do not buy ... '

Yum! Brands (YUM): 'Tough situation, obviously, they had that Taco Bell problem ... For pecking order, I like Denny's, Brinker, Darden ... and then, only then, do I like Yum.'

Winn-Dixie (WINN): 'Just came out of bankruptcy ... I can't get behind a supermarket other than Safeway.'

Skyworks Solutions (SKWS): 'Ixnay on the Skyworksnay.'

Harrah's (HET): 'You just struck it rich! You go out and you ring the register!'

-- posted by PEIC

» PEIC - Cramer on Speculation - Friday December 29 Show

Cramer on Speculation

Although some might consider speculating to be form of gambling, Cramer says he has made a lot of money with "high risk, high reward" investments which can generate cash in not much time; "I'm telling you it's OK to speculate and make those risky investments that most of the talking heads frown on," he said. "And not only is it OK -- it's entirely necessary. It's prudent and responsible." In fact, he says that a portfolio that lacks speculative stocks is not really diversified. First, Cramer says not to invest retirement funds or more than 20% of one's investment money in speculative stocks. On the other hand, he urges the most conservative investors to devote at least 1% to 2% for speculative stocks in order to "stay interested." He explains that a speculative stock is a small-cap stock, with a market cap from $250 million to $2 billion. Although Cramer is wary about companies with no revenue, he would consider buying a stock with accelerated revenue growth and no current profits if it is a good company. One can either speculate with one stock or with an entire sector with a basket of speculative plays by "casting a wide net" to distribute risk. When speculating on an industry, it is a good idea to pick one that has been unfairly "beaten up." Since small caps fluctuate dramatically, Cramer says that it's important to buy with an exit strategy to avoid losing profits. He tells investors not to give up, even after a major loss. He also warns that the market has corrections occasionally, which can be scary, but it is essential to be patient and wait for the next upturn. Also, Cramer urges his viewers to watch out for multiple contraction, when the market will pay less for the same amount of earnings. When there is a "market nosedive" or a "big, ugly downturn" investors should sell high multiple stocks, since they are the most vulnerable to contraction. Also, he suggests selling high multiple stocks before they report earnings to avoid " a world of pain." Finally, Cramer urges investors to use limit orders instead of market orders: "Limit orders keep you in the driver's seat, they keep you from being totally ripped off, and they're really easy to execute," he said. "Please, if you listen to nothing else I say, use limit orders instead of market orders."

by Mirriam Mettzinger

-- posted by PEIC

» Happy_2 - Top Three Growth Stocks for 2007

In response to Top Three Growth Stocks for 2007 posted by Kirk:

Let's check back Dec. 31, 2007 and see how Cramers three top picks did. Thanks for memorializing them here.

-- posted by Happy_2

» PEIC - Top 3 Speculative Stock Picks

Miriam Metzinger submits:

No. 3# Savient Pharmaceuticals (SVNT)

Cramer says that everyone has room for speculative stocks, but that they should not be purchased with retirement funds or occupy more than 20% of a portfolio. Cramer suggests buying about five different speculative plays rather than relying on one or two. His 3rd favorite speculative stock is Savient which takes the "risk factor up a dozen notches." Cramer says the company has been a "tear" but it has room to rise because it has great management, Oxandrin, which promotes weight gain after surgery and Puricase, a Phase III treatment for gout. Puricase will be the first medicine for gout developed in 40 years, and 3 to 5 million Americans have this condition which is often resistent to treatment. Cramer predicts SVNT could double if Phase III results will be positive.

No. 2. Rite Aid (RAD)

Cramer says this "unloved" stock which only has 10 analysts covering it should be picked up on Monday, since it is a "sizzling" speculative play. He notes that its deal with Brooks-Eckerd will save RAD $150 million, RAD is the one drugstore which is immune from the "Wal-Martdisease," it is a great inner-city play, and it can't go much lower without "catching a takeover bid." Cramer invited CEO Mary Sammons, the "architect" of RAD's turnaround, onto the program, and she commented that the $150 million savings from the merger was a conservative estimate, which doesn't take into account increased revenue and productivity. She added that every new store acquired entails "strong double-digit gains for five years." In addition, Sammons commented that the company is "well covered" on integration risk.

And the Winner is ... Level 3 Communications (LVLT)

Level 3 Communications is Cramer's top speculative pick for 2007 because he believes it will benefit from the bandwidth shortage. Although the stock is up 35% since Cramer's initial recommendation in September, he sees potential for a more dramatic jump because of its deal with YouTube and NBC. In addition, LVLT's deal with Broadwing was completed on Thursday, and the stock has a "big risk, big reward." Although the company also has $6.8 million debt and investors may lose money on the stock, Cramer comments "if you're gonna stay interested in stocks, you gotta take a few risks, and one of those risks is taking LVLT, even at its $6 level."

-- posted by PEIC

» PEIC - Lightning Round Jan 5

Bearish calls:

Yamana Gold (AUY): ' I happen to think that AUY is the best gold stock but, if I'm right about commodities, gold is about to have a leg down ... only at $10, do you pull the trigger.'
Ultra Petroleum (UPL): 'That house of pain is absolutely going to continue for some time ... I suggest that you take a long-term view, but understand that there could be 15% more downside in UPL.'
Deere (DE): 'Coming down a little. The stock was an unbelievable performer last year ... Let's ring the register. Those who want to be in DE... I may suggest that $85 is where I'd feel comfortable recommending it.'
EarthLink (ELNK): ' ... you have to understand, it's really speculative, and that terrific CEO just died of cancer. So the stock has kind of lost its way.'
Cleveland Cliffs (CLF): ' ... the problem here, is that all the mineral stocks are in free fall in America, but CLF has 8% growth. Its stock is just too cheap. If you can wait until the cycle turns - it may be 18 months - you can hold onto CLF. But, if you bought it much lower, ring the register, because it's going to have some downside.'
Amylin Pharmaceuticals (AMLN): 'We rang the register at $47 and we said stay away, and I mean stay away. Sell, sell, sell!'
AngioDynamics (ANGO): ' ... the news that came out this week ... - is a fantastic opportunity to take profits. I want to distance myself from that speculative stock right now.'
Sonus Networks (SONS): 'That's had a good run. Let's take it off the table.'
Shanda Interactive (SNDA): 'Don't get me in that cauldron ... I say take the profit. Make the money. I've had enough of it. Sell, sell, sell.'
Sun Microsystems (SUNW): ' No, no, no. Sell that. I want you to buy HPQ.'
Harrah's Entertainment (HET): 'You already won. Ring the register. Let's move on. Sell, sell, sell.'
MGM Mirage (MGM): 'Take the win. Sell, sell, sell!'

Bullish calls:

Toyota Motor (TM): 'This was going to be my stock of the year... It's taking big share from GM and F. I think the stock, ultimately, could go to $200 ... Let's wait until it goes down below $130, and then we pull the trigger.'
Spectra Energy (SE): ' If you got this through the Duke spinoff, I would tell you to keep buying it. I think it's going to be one of the best natural gas distribution stocks out there and those yield a lot and have very, very steady dividend increases (sound of truck doing a 'mon-back).'
Kinder Morgan Energy (KMP): 'Richard Kinder is the smartest man in the oil business.'
Cisco (CSCO): ' We are just so solemnly behind CSCO, that we are not going to even think about being in another stock.'
Saks (SKS)
Time Warner (TWX)
Hewlett-Packard (HPQ): 'I want you to buy HPQ.'

-- posted by PEIC

» PEIC - Lightning Round Jan 8

Bullish calls:
.
Thermo Fisher Scientific (TMO): ' May I suggest - if you're going to do medical diagnostics ... it's TMO.'
.
Marvell Technology (MRVL): ' ... I think it's got one down and five up. They make the controllers for disk drives, among other things, and also the PS2 ... I think it's six months before it explodes, but it will explode to the upside!'
.
Companhia Vale do Rio (RIO): 'The only one that I will still sanction, was my last one that I recommended, which was RIO.
.
Hewlett-Packard (HPQ): 'The only one [personal computer company] that I've actually been recommending - it's got big revenues this company - is the HPQ.'
.
USG (USG): 'I think USG is maxed out by Warren Buffet. It's at $52 bucks and, if housing turns, it goes right to $65. And, if housing doesn't turn, no real downside - maybe $49. That means 3 down, and it means 7 up. 7 up wins.'
.
Community Bank System (CBU): 'This one's very cheap off the book value. Why? Because the book value's actually cash, when it comes to banks. I like it. 3.4% yield. I'm not concerned about the inverted yield curve ... You've got a winner.'
.
Daktronics (DAKT): 'They were beat up, and it was a fallacy! ... This was classic profit taking ... I like DAKT very much on this pullback, and I want to pull the trigger, and then I want to stay with it.'
.
Bearish calls:
.
Mindray Medical International (MR): 'Oh, there's a man who likes to go to China and look for nothing but problems. We got a lot of companies who do the same thing - in terms of the internet - right here ... TMO's better than MR.'
.
Internap Network Services (INAP): 'It is time to ring the register INAP.'
Intuitive Surgical (ISRG)
.
Amphenol (APH): 'I never find these companies to be anything that special, but they always trade cheap. I have no catalyst to recommend APH, so I'm going to say, 'don't buy, don't buy.'
.
Rio Tinto (RTP): 'The commodity boom is over. NEM - the last of the big gold stocks - is rolling over. I do not want be associated with RTP, or BHP anymore. '
BHP Billiton (BHP)
.
Systemax (SYX): 'We liked this stock before; it's had a really nice run. I am not going to tell you that it's necessarily cheap ... SYX is kind of one of these [ one sideways thumb].'
.
Peabody Energy (BTU): ' ... coal is plummeting, plummeting. No one wants to own coal. Plus, we have the Democrats ... they are not of, by and for the corporation. They are concerned with the air. You can't make any money off of that game - the air game. Therefore, I think that BTU remains a cheap stock with no catalyst. Not for me.'
.

-- posted by PEIC

» davey52 - Booyah

In 05 Cramer also said DNA was going to par and never quite made it. Good earnings today so we'll see. "Taste of America" says Booyah is some kinda weird soup. Go figure:)

-- posted by davey52

» davey52 - Booyah

In response to Booyah posted by davey52:

FWIW; Cramer says the tech bull markets on hold until august. More of a correction than I'd figure.

-- posted by davey52

» TomFi - Jim Cramer guest speaker

One of my sons, who works for Bank of America, called me last night. He was at a private sitting at the Ritz-Carlton Hotel in NYC where Jim Cramer was the guest speaker.

Cramer told them he likes BAC but did not like commerce bank because to many things were going on internally.

The bank paid him a fee and donated a sum of money to his charity. I just checked the stock prices and I see CBH is up more than BAC. (?)

-- posted by TomFi

» davey52 - Right or wrong call

Cramer's sure getting a lot of air time today, right or wrong. He says the evening show doesn't use call screeners so there should be some interesting calls tonight. Cost some folks big bucks so far today. Bodyguard comes to mind:)

-- posted by davey52