Jim Cramer Blog

Breaking up is Good to Do, Sony (NYSE: SNE - News) and Apple (NASDAQ: AAPL - News)
Now that everyone is talking about Apple, Cramer suggests looking at companies that are not so well-loved but have potential upside. Cramer notes that Sony is the polar opposite of Apple, since it seems incapable of doing anything right and is being written off. Sony is worth $45 billion and should have a revenue of $70 billion while Apple is worth $82 billion and should have a $23 billion revenue. Judging by the numbers, Cramer says that Sony is too cheap and would be even more valuable if it would break itself up. Even if Sony doesn't take that step, the widespread perception that Sony could be worth more after a split-up is enough to raise the stock. Cramer estimates the breakup value would be $61 to $72 and he would buy Sony before it reports on January 30.
Blockbuster Comeback (NYSE: BBI - News), Netflix (NASDAQ: NFLX - News)
Blockbuster was getting trounced by Netflix, but Cramer praises CEO John Antioco who fought back by developing an online business. Now customers can drop videos rented online off at a Blockbuster store which means a "big leg up." Cramer added that the company had 700,000 new customers in November and December, and that customer satisfaction is at an "all time high." Cramer declares that 2007 "will be the year of Blockbuster" and invited the company's "heroic" CEO onto the program. "We've always had a great brand and great retail locations,"Antioco commented, adding that the Total Access campaign, which allows customers to return videos by mail or at stores, has been a success. Cramer concluded that BBI will go higher and he doesn't consider it a speculative play anymore.
Sell Block: Intercontinental Exchange (NYSE: ICE - News), NYSE Group (NYSE: NYX - News), InnerWorkings (NASDAQ: INWK - News), Atherogencis (NASDAQ: AGIX - News) and J. Crew (NYSE: JCG - News)
Cramer commented that he likes NYX better than ICE, even if the latter's "supply pressure" problem were not a factor. In spite of "massive insider selling" going on at INWK, he would sell the stock because it is better to "cut and run." Cramer would also sell AGIX and would buy JCG.
CEO Interview: Mark Shapiro, Six Flags (NYSE: SIX - News)Cramer praised Mark Shapiro for selling seven theme parks for $312 million, and asked how low gas prices would affect SIX. Shapiro replied that this would be "fantastic" for business and predicted a solid year for his company, based on strong early season indicators. He added that Six would "earn itself a new reputation." Cramer added that SIX is a good $5 to $6 speculative stock.
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Labels: AAPL, AGIX, BBI, ICE, INWK, JCG, Jim Cramer, Mad Money, NFLX, NYX, SIX, SNE

Four Dividend Gifts: U.S. Bancorp (NYSE: USB - News), National City (NYSE: NCC - News), Asbury Automotive (NYSE: ABG - News), and United Online (NASDAQ: UNTD - News)
Cramer listed four stocks that "keep on giving" with their great dividends. U.S. Bancorp has a 4.4% yield and a 35 year history of consistently raising its dividend, Cramer observes, adding that it has a good buyback program and a "pristine balance sheet." In addition to National City's 4.2% dividend and its "big fat buyback" Cramer applauds the company for getting rid of its low-margin mortgage business and setting up a position in Florida. ABG, which sells cars in the $30,000 to $35,000 range has good earnings growth, comments Cramer, and has the money to raise its 3.3% dividend. Finally, Cramer calls UNTD "the big one" with a 6.1% dividend and a "serious growth business."

Hot and Cool: Omniture (NASDAQ: OMTR - News), InnerWorkings (NASDAQ: INWK - News), Riverbed (NASDAQ: RVBD - News), DivX (NASDAQ: DIVX - News) and Acme Pocket (NASDAQ: APKT - News)
Last week, Cramer discussed "hot stocks" and said that OMTR, INWK and RVBD were not "too hot to buy," and are good for the next six to nine months, but on Friday he emphasized that he would sell DIVX. Cramer's fifth hot stock is APKT, which is a pioneer in the Internet telephony business and "hasn't even started to run yet." Cramer notes that it has reported good profits for four consecutive quarters, has "massive revenue growth" and, since it is covered by only five analysts, APKT has upgrade potential. Although those who hold the stock on the April 10th expiration of its share lockup will be hurting, Cramer assures investors that they have a few months to watch the stock rise and says ACME is "too cool not to handle, and it is far from being too hot."

Desperate Hedgies: Apple (NASDAQ: AAPL - News), Google (NASDAQ: GOOG - News), Goldman Sachs (NYSE: GS - News), Research In Motion (NASDAQ: RIMM - News), AIG (NYSE: AIG - News), Devon Energy (NYSE: DVN - News), Johnson & Johnson (NYSE: JNJ - News) and Halliburton (NYSE: HAL - News)
Hedge fund managers whose funds have not been doing well in the past year are frantically selling stocks such as APPL, GOOG and GS which are "symbolic of the market" to make it seem as if the performance of their funds is related to the health of the Dow. Instead of worrying, Cramer suggests investors use this "short-term, rumor-down market" to pick up some good quality stocks such as RIMM, AIG, DVN, JNJ and HAL at low prices; "After buying them on the cheap next week, take them in 2007 and enjoy it," he said.
CEO Interview: Bruce Williamson Dynegy (NYSE: DYN - News)
Bruce Williamson said that his company's deal with LS Power will increase assets under management by 70% and will add more cash flow. When asked how the deal will affect DYN's exposure to natural gas, Williamson replied, "With LS Power, it is going to to drop our exposure of a dollar move of natural gas down from 10% of EBITDA to a 4% move in EBITDA... It stabilizes the platform." Cramer applauded Williamson and called him a "winner."

Labels: AAPL, ABG, AIG, APKT, DIVX, DVN, DYN, GOOG, GS, HAL, INWK, Jim Cramer, JNJ, Mad Money, NCC, OMTR, RIMM, RVBD, UNTD, USB

Four Dividend Gifts: U.S. Bancorp (NYSE: USB - News), National City (NYSE: NCC - News), Asbury Automotive (NYSE: ABG - News), and United Online (NASDAQ: UNTD - News)
Cramer listed four stocks that "keep on giving" with their great dividends. U.S. Bancorp has a 4.4% yield and a 35 year history of consistently raising its dividend, Cramer observes, adding that it has a good buyback program and a "pristine balance sheet." In addition to National City's 4.2% dividend and its "big fat buyback" Cramer applauds the company for getting rid of its low-margin mortgage business and setting up a position in Florida. ABG, which sells cars in the $30,000 to $35,000 range has good earnings growth, comments Cramer, and has the money to raise its 3.3% dividend. Finally, Cramer calls UNTD "the big one" with a 6.1% dividend and a "serious growth business."

Hot and Cool: Omniture (NASDAQ: OMTR - News), InnerWorkings (NASDAQ: INWK - News), Riverbed (NASDAQ: RVBD - News), DivX (NASDAQ: DIVX - News) and Acme Pocket (NASDAQ: APKT - News)
Last week, Cramer discussed "hot stocks" and said that OMTR, INWK and RVBD were not "too hot to buy," and are good for the next six to nine months, but on Friday he emphasized that he would sell DIVX. Cramer's fifth hot stock is APKT, which is a pioneer in the Internet telephony business and "hasn't even started to run yet." Cramer notes that it has reported good profits for four consecutive quarters, has "massive revenue growth" and, since it is covered by only five analysts, APKT has upgrade potential. Although those who hold the stock on the April 10th expiration of its share lockup will be hurting, Cramer assures investors that they have a few months to watch the stock rise and says ACME is "too cool not to handle, and it is far from being too hot."

Desperate Hedgies: Apple (NASDAQ: AAPL - News), Google (NASDAQ: GOOG - News), Goldman Sachs (NYSE: GS - News), Research In Motion (NASDAQ: RIMM - News), AIG (NYSE: AIG - News), Devon Energy (NYSE: DVN - News), Johnson & Johnson (NYSE: JNJ - News) and Halliburton (NYSE: HAL - News)
Hedge fund managers whose funds have not been doing well in the past year are frantically selling stocks such as APPL, GOOG and GS which are "symbolic of the market" to make it seem as if the performance of their funds is related to the health of the Dow. Instead of worrying, Cramer suggests investors use this "short-term, rumor-down market" to pick up some good quality stocks such as RIMM, AIG, DVN, JNJ and HAL at low prices; "After buying them on the cheap next week, take them in 2007 and enjoy it," he said.
CEO Interview: Bruce Williamson Dynegy (NYSE: DYN - News)
Bruce Williamson said that his company's deal with LS Power will increase assets under management by 70% and will add more cash flow. When asked how the deal will affect DYN's exposure to natural gas, Williamson replied, "With LS Power, it is going to to drop our exposure of a dollar move of natural gas down from 10% of EBITDA to a 4% move in EBITDA... It stabilizes the platform." Cramer applauded Williamson and called him a "winner."
Published By SeekingAlpha

Labels: AAPL, ABG, AIG, APKT, DIVX, DVN, DYN, GOOG, GS, HAL, INWK, Jim Cramer, JNJ, Mad Money, NCC, OMTR, RIMM, RVBD, UNTD, USB

InnerWorkings (NASDAQ: INWK - News)
Continuing his week-long discussion of "hot stocks," Cramer discussed InnerWorkings, which outsources printing services and has gone up 87% since its IPO in August. The company has had a record of positive profit and net income and has a "right to exist" in spite of its competition. Cramer says that this stock has room to rise, but suggests that investors keep its Feburary 11 lockup expiration date in mind and to buy half of a position now and half after Feb. 11 or to swap out of the stock during that period. Cramer suggested taking 48 hours to do research on the stock before buying.

Adobe (NASDAQ: ADBE - News)
Cramer comments that Adobe "through no fault of its own, got pummeled on Monday in a vicious Nasdaq selloff," and he would use the opportunity to pick up this "indispensible" stock. Adobe was down because investors were afraid that it would report lower guidance, but when it didn't, the stock spiked. Cramer also mentioned that negative speculation by short-sellers might have kept the stock down. He would buy Adobe which is "too cheap for the wrong reasons" ahead of its Creative Suite 3 release, and ride it on a "four month magic carpet ride."

Verifone (NYSE: PAY - News)
Although holiday stocks have been played out, Cramer likes ancillary seasonal play, Verifone, which makes credit and debit card swiping machines and is "by far the market leader" in this business. The company is going to have a big upgrade in the U.S. and will replace their machines. In addition, Verifone has tremendous growth potential in the developing world, and is a cheap stock which is " one part ancillary Christmas play and 10 parts great stock," according to Cramer.
CEO Interview: Dr. Paul Berger, Nighthawk Radiology (NASDAQ: NHWK - News)
When asked about the company's hospital growth, Dr. Berger commented "At the end of the third quarter this year, we have approximately 981 hospitals which send us images every night, or approximately 18% of the hospitals in the U.S. And that's been a growth of 121 hospitals over the first nine months of 2006." He also discussed the world-class radiologists on staff and the technology which enables physicians to be more efficient. Cramer said he likes Nighthawk, but would not be against ringing the register since he is tired of defending a winning stock which investors are not thrilled about.
Published By SeekingAlpha

Labels: ADBE, INWK, Jim Cramer, Mad Money, NHWK, PAY