Jim Cramer Blog

Google (GOOG): Today's show started with Cramer talking about Google. He talked about all the Google non-believers, and then talked about the reasons that he thinks the stock will keep going higher. He has set his price target at $750, and believes it's not too late to get into the stock right now. He thinks it is a great company and has been undervalued every day "of it's existence." He told viewers that if they're afraid to buy such an expensive stock, divide it by 10 and think of it in that sense. Buy Buy Buy!
Next Cramer listed medical device makers that he likes by building a theoretical bionic woman. The first stock he listed was Alcon (ACL) which makes eye care products. He also recommended Smith and Nephew (SNN) and Stryker (SYK). His favorite one is Stryker, which he thinks could give you a 36% gain. Stryker has some litigation pending, but once that is settled he thinks the stock will take off. He also believes that the stock will do well if the economy slows. A caller asked about BioScrip (BIOS), and Cramer said that BIOS is an interesting takeover play with solid fundamentals.
"Are You Diversified?"
The first caller asked about his core of Google (GOOG), eBay (EBAY), Wachovia (WB), Nastech (NSTK) and Southwest (LUV). Cramer said he prefers United (UAUA). He said eBay overlaps with Google. He recommended selling eBay and buying a defensive stock.
A second caller's portfolio included Wells Fargo (WFC), Lockheed Martin (LMT), Texas Instruments (TXN), Exxon-Mobil (XOM) and Dover (DOV). "Hallelujah," Cramer said. There is a picture of this caller in the dictionary next to the entry for "diversification."
He also said "hallelujah" to the third callers portfolio which included Wachovia (WB), Research in Motion (RIMM), Schlumberger (SLB), Lockheed and Lundin Mining (LMC).
BioMarin Pharmaceutical (BMRN) CEO was on the show. Cramer discussed the prospects of an upcoming drug from BioMarin and said that he is bullish on the stock.
Finally, Cramer came back and said that he was wrong about Downey Financial (DSL), which was down big today.

Labels: ACL, BIOS, BMRN, GOOG, Jim Cramer, LUV, Mad Money, Mad MOney Recap, NSTK, SNN, SYK, WFC

Time Heals all Wounds: Kinetic Concepts (NYSE: KCI - News) and Smith & Nephew (NYSE: SNN - News)
Although Cramer usually prefers medical stocks which are a "pastiche," he likes KCI as a speculative stock even though it is levered only to wound-care and therapeutic service products. He is not concerned about the "nasty beating" KCI has taken, since the bulls and bears tend to fight it out over companies like KCI, and Cramer thinks the bulls will win. Another concern is KCI has reached 90% saturation in wound care and now has to compete for market share with SNN which recently acquired Blue Sky Medical. Cramer believes KCI has many competitive advantages, its 3% drop was "overdone," and only 10% of its revenue comes from bandages. He is confident KCI will bounce back.
On the Mend: Micrus Endovascular (NasdaqGM: MEND), Boston Scientific (NYSE: BSX - News) and Johnson & Johnson (NYSE: JNJ - News)
While those holding the stock may be in the "House of Pain" after MEND failed to get approval in China for its cerebral aneurysm treatment, Cramer thinks its $2 fall is a good opportunity to buy. He believes approval has been postponed and not cancelled, and would sell into strength once the treatment is approved. Cramer is not worried about large competitors BSX and JNJ. He also notes MEND could be a takeover target; "It either makes you money or it will get bought out." Cramer would buy the stock in increments andwould use limit orders.
Game Plan for the Coming Week: Thermo Fisher Scientific (NYSE: TMO - News), J.C. Penney (NYSE: JCP - News), Kohl's (NYSE: KSS - News), Home Depot (NYSE: HD - News), TJX Companies (NYSE: TJX - News), Jack in the Box (NYSE: JBX - News), Deere (NYSE: DE - News)
Cramer would look into buying scientific-instruments producer TMO before its analyst meeting on Tuesday. He also likes retailers JCP, KSS which report Thursday, and he thinks the downside has been priced into the stocks. Cramer is currently bullish on retail, and would buy half a position in HD before its Tuesday report, since he believes its management is developing "retail-savvy." Tuesday is also the day Cramer believes investors will see a "terrific" report from TJX and a "gigantic beat" from JBX, and he would buy ahead. However, Cramer would wait until after DE's report on Wednesday before buying, because the stock has increased, and he would wait for a selloff and a price drop.
CEO Interview: Mark Shapiro, Six Flags (NYSE: SIX - News)
Mark Shapiro is looking forward to an "extremely good summer season" given the number of group sales and season passes SIX has already sold. Meanwhile, the company has been investing in more aggressive marketing, employee training and recruiting. Although the weather is an unknown variable, Shapiro's aim is to "increase value proposition for our guests." Cramer remarks Shapiro is "good to go" and is sticking with Six Flags.

Published By SeekingAlpha

Labels: BSX, DE, HD, JBX, JCP, Jim Cramer, JNJ, KCI, KSS, Mad Money, SIX, SNN, TJX, TMO

U.S. stocks are poised to extend their stunning year-end rally in the coming week as more evidence that the economy is headed for a soft landing is expected to come out as well as higher earnings from the likes of Morgan Stanley and Oracle Corp.
Revived hopes for a rate cut - or least a continuation of a pause in the central bank's campaign to raise interest rates - pushed blue-chip shares to two record closing highs this past week after the Fed left rates unchanged, and took the S&P 500 Index to its highest level since the end of 2000.
"We will see some profit taking and some choppy trading until December 31," said James Park, managing director at Rodman & Renshaw, "but my bias is toward the upside."
The last full week of trading of the year will feature another raft of economic data. Housing starts, durable goods, and the central's banks preferred reading on inflation, the core personal consumer expenditure index, are on tap.
The Christmas holiday on Monday, Dec. 25 will shorten the final week of equity trading.
On the earnings front, Morgan Stanley (NYSE:MS - News) Circuit City Stores Inc. (NYSE:CC - News) , Bed Bath & Beyond Inc. (NASDAQ:BBBY - News) , FedEx Corp. (NYSE:FDX - News) , and Nike Inc. (NYSE:NKE - News) are scheduled to report.
Database software maker Oracle Corp. (NASDAQ:ORCL - News) on Monday is expected to post higher quarterly profit and sales, helped by revenue from a number of acquisitions.
Biomet Inc.'s (NASDAQ:BMET - News) report is due Wednesday. The S&P 500-listed orthopedic implant maker's shares jumped earlier this week on market speculation of a takeover bid from Smith & Nephew Plc (NYSE:SNN - News) .
On hold
Stronger-than-expected retail sales and a tame consumer inflation report for November this past week eased concerns that the Fed will find reason to resume tightening rates early next year.
The Fed on Tuesday left its key overnight lending rate at 5.25% but in its accompanying statement reiterated its concern that core inflation is too high for its taste, which is no more than the 2% on an annualized basis.
But the market ended higher on Friday after data showed consumer prices were unchanged in November in the headline reading and the core reading, which excludes volatile food and energy prices. The core reading was the lowest since June 2005.
Alec Young, equity market strategist at Standard & Poor's, said it's evident that the economy is decelerating. However, he expects investors to remain in buying mode because the slowdown is still "healthy enough" to drive earnings growth and hasn't forced consumers to dramatically rein in spending.
Young said many investors are still looking for a rate cut from the Fed, but he thinks it's better for them to stay on hold for now.
'We don't think [a rate hold is] a negative for the market. That just validates this whole not-too-hot, not-to-cold scenario," for both the economy and inflation.
After the release of the CPI figures, the odds of an interest rate cut by the end of the first quarter of 2007 doubled. April fed funds futures now imply a 24% chance rates will be lowered to 5%.
"I see people dressing up and marking up some of their portfolios at the end of the year," said Park. Trading is likely to be volatile due to lack of liquidity in the final days, he said.
Paul Nolte, director of investments at Hinsdale Associates, said next week he'll be on the lookout for weekly data from Chicago-based Shopper Trak RTC to see how the holiday shopping season is holding up.
Nolte will also focus on developments in the housing sector. There has been debate this week about whether the market is close to a bottom, and it will be "important to either confirm or deny that."
The housing starts figure from the Commerce Department due Tuesday is expected to rise to 1.52 million from 1.49 million.
Nolte said "the bond market is not yet so sure," whether the economy is headed toward a soft landing or a hard landing.
However, it's clear to him that the equity market believes the slowdown has worked itself out successfully, and that the large amount of corporate and private equity cash "floating around from the merger and acquisition arena," has been underpinning strength.
What's not clear to Nolte is when stocks will take a sustainable break from their advance.
"The markets are well extended here and way overdue for a modest, if not normal, correction of 5% to 10%. The big question is when does that occur, and I have no idea."
Dow hits record high; crude futures rises
The lack of evidence of inflation, sizzling earnings from the likes of Goldman Sachs Group (NYSE:GS - News) and Bear Stearns Cos. (NYSE:BSC - News) , and more mergers and acquisitions speculation in the airline industry helped stocks post their best five-day stretch in a month last week.
The Dow Jones Industrial Average (^DJI - News) on Friday rose 29 points to close at a record 12,445.52. The S&P 500 Index rose 1.6 points to 1,427.09, and the Nasdaq Composite (COMP - News) gained 3.35 points to 2,457.20.
For the week, the blue-chip index gained 1.1%, the S&P 500 added 1.2% and the Nasdaq Composite rose 0.8%.
Treasury prices were unable to sustain a rally that sent the yield on the 10-year Treasury note to an intraday low of 4.5%. Prices closed unchanged, leaving the benchmark note with a yield of 4.597%.
The U.S. dollar recovered from a sharp selloff after to end at a one-month high versus the yen and a three-week high against the euro Friday. The dollar advanced 1.6% for the week against the yen and 0.9% versus the euro. As the greenback dropped, gold futures fell almost $12 an ounce Friday, while silver lost 7% and copper prices sank to a six-month low. Gold ended with a 1.9% for the week.
Crude futures rose above $63 a barrel on Friday and logged a weekly increase of 2% for the week. The higher prices were supported by concerns that the Organization of the Petroleum Exporting Countries had pledged on Thursday to cut production in February.
By Carla Mozee

Labels: BBBY, BMET, BSC, CC, FDX, GS, MS, NKE, ORCL, SNN