Cramer's 'Mad Money' Recap: PortalPlayer a Play

Click here for an archive of Cramer's "Mad Money" recaps.

---

Sales of Apple's (AAPL) iPod nano were huge this weekend in its debut on the market, Jim Cramer said on his "Mad Money" TV show Monday. That means good things for PortalPlayer (PLAY), which makes audio chips for the device.

Thomas Weisel Partners raised year 2005 sales estimates Monday for the iPod to 10 million units, up from 7 million to 8 million units. That means upside for PortalPlayer, said Cramer.

The next big thing on the horizon, Apple's video iPod, also is likely to use PortalPlayer's chips, said Cramer, although some believe the contract will go to Sharp. Should that happen, said Cramer, he would simply ring the register.

Cramer said insiders have been selling PortalPlayer's stock but Cramer is not concerned. Insiders "sell for a million reasons," he said, and stock sales by insiders are rarely a reliable indicator of where a stock is headed.

Cramer said there is no reason to buy PortalPlayer immediately if you're cautious, as the stock has had a bit of a run. And, if Cramer had bought the stock before its run, he probably would be taking some profits now. However, he believes the stock is still headed higher.

In response to a question about disk-drive makers Seagate Technology (STX) and Komag (KOMG), Cramer would sell Seagate and doesn't want anything to do with Komag.

Commenting on flash-memory plays, Cramer likes Lexar Media (LEXR) and SanDisk (SNDK), but don't overlook Silicon Motion Technology (SIMO), he said.

Foster Wheeler the Real Deal

Cramer is bullish on Foster Wheeler (FWLT) even though the stock already is up nearly 275% in the last year. The company has dealt with its asbestos liability, said Cramer, and business is roaring. The company is in three bull markets, he said: oil engineering and construction, power generation facility construction and the biotech plant construction. Foster Wheeler has no Wall Street analyst coverage, which is another reason Cramer likes it.

A caller asked if other asbestos-plagued companies might be worth buying. Cramer said companies such as Federal-Mogul (FDMLQ), Owens Corning (OWENQ) and W. R. Grace (GRA) are "not as far along in the healing process." He said he would rather stick with companies that are totally healed from asbestos, so that there are no surprises.