Jim Cramer Blog

Cramer breaks investing vow! Investing in an American Airline is no longer a heresy. The company is Continental Airlines (CAL), which is the fourth biggest airline by revenue. Why is Cramer suddenly a fan? For one, it was up today eventhough the market was crummy. Also, and most importantly, the US and Europe have made an "Open Skies" agreement which will increase demand for international flights across seas making the American Airline companies, especially (CAL) prime takeover targets. Hold on until "Open Skies" is launched.Another note on the airline industry, if you want to make speculative plays on bankrupt airlines, get into bonds. Also, Boeing ( BA ) is the only aeropspace contractor to buy.Tonight Cramer talked about what made Master Card (MA ) good and Vonage (VG ) bad. Starting with the cons of (VG ):
They let investors buy up 50% without money down
Stock opened at $17 and ended at $17.25 then fell to $14 the next day
Verizon brought a patent infringement suit against them
They are getting devoured in a competitve business
The pros of (MA):
They opened strong at $39 and ended strong at $46
They have a strong, sustainable business
They have smart celebrity endorsements (World Cup)
Cramer also recommended trying to get a piece of the up and coming J.Crew IPO due to come out in a few weeks.
Lightning Round
Bulls:
SMSI sell at 16
NRB
HAL
NOK
XTO
RIO patience
CNX
TXU ride to 59 and buy more
GW
DIS
Bears:
HERO
TKLC
NKTR sell at 21
TIE
ZZ
To close things up, Cramer talked about how he was wrong about the long term outlook for Urban Outfitters (URBN ). They are a victim of their own succes. The bottome Line: not all stocks that go down, even the one's that Cramer liked, are cheap. Stay away from (URBN ), but stay with Cramer.