Jim Cramer Blog

A Good Call: AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Sprint Nextel (NYSE: S - News) and Qwest (NYSE: Q - News)
Four companies are poised to become the candidate for the government's largest ever telecommunications contract, Networks Universal, and Cramer believes this contract is significant if it will "move the needle." He comments T and VZ are already so large that even though the deal will mean $68 billion over the next 10 years, it shouldn't move these stocks more than 50 or 60 cents upward. Sprint would be a likely candidate, but although the company reported a good quarter, things look less rosy for Motorola, Sprint's supplier. This leaves Qwest; "I think you'll see a gigantic move, as the permanence of Q is no longer in doubt," said Cramer. Even if Q doesn't get the deal, it is in the "fast-growing part of the country" and may be a takeover target. Cramer would do a mon' back!
Water the Odds? Pico Holdings (NasdaqGM: PICO)
A student at the University of Texas gave Cramer the idea to look at water stocks, and while he is not hitting the bull button yet, Cramer suggests doing homework on PICO, a small speculative play. While Cramer is not thrilled with the water utility market, he likes the fact that PICO sells its water at a premium and has a 35 mile water pipeline under construction. While only one analyst is covering the stock, but Cramer says, "Water is becoming too hot for it to stay under the radar." He urges investors who have done their homework to use limit orders when buying PICO.
Sell Block: Blockbuster (NYSE: BBI - News), GSI Commerce Inc. (NasdaqGS: GSIC), Motorola (NYSE: MOT - News), Nokia (NYSE: NOK - News)
Although Cramer has been bullish on BBI, he was essentially bullish on CEO John Antioco, and would sell the stock on the announcement of Antioco's departure, because "he was the one who gave us our double in the stock" and "exceeded handily" his promises. Although some are critical of Antioco's long-term performance, Cramer pointed out that he saved BBI from Netflix, and he would take gains in the stock now. Cramer notes GSIC is up 28% since his December recommendation, and he would do a schnitzel (sell the gains) on its large increase. Cramer then discussed the "unbelievable Barnum and Bailey stuff" that occurred when some "joker" of an analyst suggested buying Nokia after Motorola cut guidance. "What's bad for MOT is going to be bad for NOK," said Cramer, because MOK's problem is an indication of an industry-wide problem.

CEO Interview: Angelo Mozilo, Countrywide Financial (NYSE: CFC - News)
When Cramer asked why CFC stopped giving out "bad loans" at a time everyone was doing it, Angelo Mozilo said he was talking about problems with loan quality and margins at New Century and Ameriquest a year ago. The companies had a bad business model, Mozilo continued, stating there will be consequences for minority and first-time prospective homeowners because of disappearing liquidity, and this trend will impact the housing market. However, he added the subprime mess has cleared the field of many of CFC's competitors, and the company will be in a dominant position at the end of this painful subprime ride. Cramer commented its time to pick up survivors like CFC ahead of a Fed rate cut in May. Cramer aimed to reassure viewers about Muzilo's stock-selling; "He's an older fellow... It's time for him to do a little insider selling... and I would start doing some outsider buying!"
Published By SeekingAlpha

Labels: BBI, CFC, GSIC, Jim Cramer, Mad Money, MOT, NOK, PICO, Q, S, T, VZ

Pick #3: Yahoo! (NasdaqGS: YHOO)
People have been asking Jim Cramer what is happening to Google (NasdaqGS: GOOG), and he replies that it is stalled. When it falls from $465 to $450, he says it might be worth buying again, since Cramer still thinks it will reach $900. In the meantime, Cramer suggests taking a look at three dot-coms, and his third favorite pick is Yahoo!. Although Yahoo! is a distant second after Google, Cramer believes when Fidelity Investments will finish selling its massive stake in the company, the stock will get a bounce. He also notes Legg Mason is buying Yahoo, its Panama search engine is "for real" and its estimates are too low and can be beaten easily.
Pick #2: IAC/Interactive Corp. (NasdaqGS: IACI)
Cramer notes that this stock has risen 60% since he recommended it in August when it was "one of the most hated stocks." He praises its acquisition of CollegeHumor.com, a "quiet moneymaker" and notes that it is gradually "nibbling up the whole internet one bite at a time." While many people consider the company's combination of businesses as random, Cramer sees the company as developing more efficient web services and notes IAC's "real buyback," is a vote of confidence.Pick #1: eBay (NasdaqGS: EBAY)
Cramer called eBay his "primo, absolute favorite" internet stock because it is an essential part of the culture, and in spite of the fact that its acquisition of Skype was "the single dumbest purchase of the decade," Skype seems to be improving and the negativity is already priced into the stock. Cramer thinks its most recent purchases, such as StubHub, are smarter, notes that it has an improved search engine coming, and its "international growth is en fuego. Cramer likes the fact that eBay owns PayPal, "the Visa, Mastercard and American Express of the Internet," and that it is "pretty much a monopoly" with accelerated growth.CEO Interview: Michael Rubin, GSI Commerce (NasdaqGS: GSIC)
Cramer asked Michael Rubin why investors should stay with GSI, and he said its services are just "kicking in" and it has an advantage over a company like Amazon because "everything we do is about supporting our partners ... we don't compete with them in any shape, way or form." Cramer commented on the company's "fabulous growth" and suggests staying with it.
Published By SeekingAlpha

Labels: Ebay, GOOG, GSIC, IACI, Jim Cramer, Mad Money, YHOO

Play it Cool: Global Sources (NASDAQ: GSOL - News), J. Crew (NYSE: JCG - News), and the Gap (NYSE: GPS - News)
Cramer urged investors to "check their enthusiasm at the door" when it comes to investing. He recommended GSOL last week, but told investors not to buy it after hours before doing their homework. He also said that people got too excited when J. Crew rose after it reported, and Cramer commented that people should have expected a decline. Now that the stock is at $39.99, Cramer says that it's time to pull the trigger, but to do so gradually. He likes the fact that the company underpromises and overdelivers, and applauds CEO Millard "Micky" Drexler who left Gap in 2002 and brought that company up 368%. Cramer thinks there is time to get into J. Crew because he doesn't envision that the pullback will be over until December 27.
Subtle Seasonal Strategy: Safeway (NYSE: SWY - News), GSI Commerce (NASDAQ: GSIC - News)
Cramer likes to find indirect ways of playing the holidays, such as Safeway, which he discussed earlier this week. Another subtle strategy is to buy GSI Commerce which provides Web-related marketing, design and management for companies such as Dick's Sporting Goods and Burberry. Cramer comments that GSIC has growth like Google but it is trading at a 35% discount to Amazon. In addition, the stock is "criminally undervalued" and has a "truly incredible business" which plays on the secular growth of web retail.
Mad Mail : J.C. Penney (NYSE: JCP - News) and SAIC (NYSE: SAI - News)
Cramer advised not to take the fact that JCP is offering a dividend as a sign that it is stalled, and concerning SAI, he comments that people who sold the stock because they were disappointed with the quarter will regret getting out. On a general note, Cramer said that uranium and nuclear fuel are too speculative.

Labels: GPS, GSIC, GSOL, JCG, JCP, Jim Cramer, Mad Money, SAI, SWY