Cramer's 'Mad Money' Recap: All Roads Lead to Navteq
Click here for an archive of Cramer's "Mad Money" recaps.
Navteq (NVT) missed earnings estimates by a penny two weeks ago, and the stock went down 10 points. "That's an overreaction," said Jim Cramer Tuesday on his "Mad Money" TV show.
Cramer applauded a Piper Jaffray upgrade of the stock Tuesday, but the stock is still below where it was the day after it announced earnings. "Maybe no one heard [Piper Jaffray]," said Cramer. "Maybe I can help. You need to buy Navteq."
Road RangeCramer is bullish on Navteq, which makes on-board navigation systems for vehicles, because it is the kind of "gadget" stock that fits his fourth-quarter tech rally thesis. Navteq is making inroads into the mass market, he said, as more and more lower-priced vehicles are equipped with the service. The stock also historically does well in the fourth quarter, he said. Additionally, Google (GOOG) uses Navteq's database to power its mapping Web site. Cramer said Piper Jaffray is predicting 30% earnings growth for Navteq. If that happens, "growth junkies" will return to the stock, he said. Commenting on GPS handheld-device maker Garmin (GRMN), Cramer said he believes the company is also right, but he's not sure where to do a 'mon back.* The stock got "shelled" last week, he said. "Navtech has less hair on it" and has the edge right now, he said. In response to a question about telecom GPS plays such as Nextel with its GPS phone, Cramer said he is not a fan of the telecoms right now. Sprint Nextel (S) is being squeezed by Verizon (VZ) and SBC Communications (SBC), which are spending fortunes on their systems right now, he said. BellSouth (BLS) has its "head in the sand." And, Cramer indicated that Qwest (Q) is a disaster.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV