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Cramer's 'Mad Money' Recap: Get In the GameStop

08/22/06 - 07:51 PM EDT

TheStreet.com Staff

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


The best way to make money off the new Madden NFL 2007 video game that was released today is GameStop (GME - Cramer's Take - Stockpickr), Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

Although Electronic Arts (ERTS - Cramer's Take - Stockpickr) makes the Madden game, Cramer does not believe it is the best stock to buy here; it is being sued for options backdating and is suffering from competition from well-funded companies.

GameStop, the largest video-game retailer, is going to be moving a lot of new merchandise, he said. For one, the game lineup for the Xbox 360 is a lot stronger than it was last year. In addition, according to Game Informer, Take-Two Interactive's(TTWO - Cramer's Take - Stockpickr) Rockstar Games is coming out with a new controversial game called Bully, which means big sales, Cramer said.

Also, the company's bad numbers from last year should make this year's good numbers look even better, he said.

Cramer predicts a "blow-away fourth quarter," and suggested maybe hanging on to it through the first quarter of 2007 because new games such as Halo 3 and Grand Theft Auto are scheduled to come out then, too.

"Forget the software guys and consoles," Cramer said. The stock to buy in the video-game boom is GameStop, he said.

Secular Healing

The current economic cycle tells market players that they should be in secular growth stocks right now, Cramer said.

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At the time of publication, Cramer was long Schering-Plough.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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