Jim Cramer Blog

Bullish calls:
Apple (NasdaqGS: AAPL): 'I think bears are ultimately going to turn into bulls, or at least turn into pandas, and get extinct.'Abercrombie & Fitch (NYSE: ANF - News): 'You know we nailed that at 50. ... I feel that it can go a little higher. ... It's at 78 -- when it gets to 85, please, please don't be greedy.'MasterCard (NYSE: MA - News): 'I liked Master Card at 40, then I got cold feet at 60. Then I came back at 65. ... You know what, it's still too cheap? I think Master Card is going to blow the doors off the quarter. It's a 'nine buy.'W.W. Grainger (NYSE: GWW - News): 'A great American institution ... you're in the restaurant business, you're in the plumbing supply ... Grainger 76 still a buy. ... well-run company.'Melco PBL Entertainment (NasdaqGM: MPEL): 'I cannot believe that MPEL has fallen below 20 ... I am still endorsing.'Gmarket (NasdaqGM: GMKT): 'Had a major run and then pulled back. Buy it back for another trade to the long side, perhaps with a $26 price.'
Published by SeekingAlpha

Labels: AAPL, AN, ANF, GMKT, GWW, Jim Cramer, MA, Mad Money, MFC

Jones Soda (NASDAQ: JSDA - News), National Beverage (AMEX: FIZ - News) and Hansen Natural (NASDAQ: HANS - News)
Hansen Natural "ran out of fizz last summer," says Cramer, who now likes Jones Soda since it is "just beginning to run." Although the stock has been doing well, it is not too late to buy, and Cramer says he would pick some up on Monday afternoon after Thursday's buyers throw it back. Jones is a "relatively unknown stock" and the two analysts who cover Jones give it a "neutral" rating, but Cramer thinks that the company will have 100% earnings-per-share growth by next year thanks to the fact that retailers like Jones for its high premiums. Cramer thinks that Jones is a good regional to national story and has a "cultlike following" which is growing. Finally, Jones' winning deal with National Beverage will save Jones money. Cramer likes this company because it not only knows how to make a good soda, it also knows how to distribute its product.
Riverbed Technology (NASDAQ: RVBD - News)
Since Riverbed has climbed 80% since Cramer's recommendation in October, he suggests investors ring the register a bit, but to hold their position. The company "has a product that saves businesses a lot of money on their bandwidth costs and infrastructure costs," and while it is not a "hot" stock, since of the nine analysts that cover it, there are six holds and three buys, Cramer believes "they will be pressured to change their view." He predicts Riverbed will earn 25 cents a share as its market grows and comments that it has a 90% win rate with its WAN contracts. In addition, the company has beaten its estimates every quarter since its IPO.
Sell Block: Federated Department Stores (NYSE: FD - News), Activision (NASDAQ: ATVI - News), Gmarket (NASDAQ: GMKT - News), Nuance Communications (NASDAQ: NUAN - News), HealthSouth (NYSE: HLS - News)
Cramer regrets having recommended FD and says that it is a sell. Since ATVI is up 7%, he would ring the register. Cramer would take a "schnitzel," or sell a portion of a stock while retaining a position, on Gmarket, since it is up 20%, but "under no circumstances" should anyone buy Nuance, since it is moving into speech recognition, and Cramer does not think this is a good business. HealthSouth which is selling off its divisions to fund its core business is "selling off its winners to fund its loser," and Cramer would get rid of the stock.

CEO Interview: Douglas Brooks of Brinker International (NYSE: EAT - News)
When asked if people should be worried about his company, Douglas Brooks replied, "It has been a tough macroeconomic environment," Brooks responded. "But what we've tried to emphasize is innovation ... and we've been trying to work on value." He went on to discuss the company's share buyback program, its dividend increase, and new restaurants opening nationally and internationally. Cramer says that Brinker has a "limited" downside and would buy the stock.

Labels: ATVI, EAT, FD, FIZ, GMKT, HANS, HLS, Jim Cramer, JSDA, Mad Money, NUAN, RVBD

Hot Stock #1: Omniture (NASDAQ: OMTR - News)
Cramer devoted the program to discussing "hot stocks," and began with Omniture which produces software that allows websites to collect and analyze user-generated data; its clients include Time Warner's AOL, Expedia, and Ford. Omniture was a "sleepy, ignored -- even disliked -- IPO that came out last summer," he said, but later started to run, and Cramer thinks that a disappointing IPO which later picks up steam is a stock people are not likely to abandon. The company is a best of breed in a growing business and is expanding faster than its rivals. However, Cramer warns that since the stock went public in June, analysts have "rolled out buy and buy after buy" on OMTR which has just three holds, and he believes that this situation sets OMTR up for downgrades. Cramer also notes that the share lockup expires on December 26, when holders may start to sell. Those who already own the stock should hold it, according to Cramer, and buyers should wait until after December 26 to take advantage of low prices following a selloff.

Hot Stock #2: Gmarket (NASDAQ: GMKT - News) with Yahoo (NASDAQ: YHOO - News)
Although Cramer has recommended eBay, he suggests investing in a company that has more growth potential, and suggests taking a look at South Korea's answer to eBay, Gmarket, which Cramer says is "viscerally more pleasing than eBay" and whose revenues in Korea have already surpassed those of its larger rival. Not only is Gmarket's revenue up 125% year over year, but it has no debt, and is "massively undervalued" compared to eBay and Amazon, says Cramer. In addition, Yahoo owns 10% of the company and is helping it expand beyond Korea. Gmarket is an IPO and its share lockup expires on Wednesday. Cramer suggests doing some homework and buying shares after Wednesday.
Hot Stock #3: Melco PBL Entertainment (NASDAQ: MPEL - News)
Cramer has talked alot about Macau, a city off the coast of China where gambling has flourished, and many companies including Las Vegas Sands have set up casinos there. Since the gambling industry is still in "the early innings of the Macau story," Cramer believes that it is worth looking at MPEL, the first pure play on Macau. Cramer recommends buying the IPO which may open between $16 and $18, but would be cautious after $25, and suggests selling at $40.

Mad Mail: Baker Hughes (NYSE: BHI - News) and Halliburton (NYSE: HAL - News), Best Buy (NYSE: BBY - News) and Costco (NASDAQ: COST - News)
Cramer told a viewer that he likes both BHI and HAL, but noted that HAL is less expensive. He said that BBY it "too cheap" and would stay with it, although it has been hurt somewhat by competition from COST which is also doing well.

Labels: BBY, BHI, GMKT, HAL, Jim Cramer, Mad Money, MPEL, OMTR, YHOO