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RealMoney.com: Jim Cramer Blog
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The $5s and $6s Keep Getting Better

By Jim Cramer
RealMoney.com Columnist

1/10/2007 10:43 AM EST
Click here for more stories by Jim Cramer
 

Focus on the $5s and $6s. We've done some yeoman's work on the stocks under $10 here (and if you want more ideas in this group, you've got to check out our service of the same name), but I want to emphasize some of the $5 and $6 stocks that keep getting better and keep going higher.



First, Rite Aid (RAD - commentary - Cramer's Take), which we now know is stealing this Jean Coutu business after that great quarter last night. This deal is going to be a powerhouse, and Rite Aid sneaks upward nearly every day. This company, like the others, simply isn't getting any respect. Too bad; I guess that won't happen until it's at $10.

Next, Blockbuster (BBI - commentary - Cramer's Take). Boy, it put up some aggressive projections Monday: another doubling of online subscribers, an online DVD sales initiative and a cut of inventory and sales size. All of which we like. Management is committed to closing the gap with Netflix (NFLX - commentary - Cramer's Take); they will do it. And they just sold a division no one even knew they had -- Rhino Video -- to GameStop (GME - commentary - Cramer's Take).

Some great momentum there.

Level Three (LVLT - commentary - Cramer's Take) keeps making moves that let analysts raise numbers. The company is picking up little pieces here and there that make it the preferred Internet broadband provider.

And Denny's (DENN - commentary - Cramer's Take) just did it again, a positive -- albeit 1% -- same-store sales, and it makes me think the turn is still on its way. Nobody cares about this one. Big mistake.

So far this year has been crummy, except for this cohort. No wonder: Business is getting better at all of these. That's rocket fuel for these companies. It's just beginning.

Random musings: I've found your new favorite tool: TheStreet.com Ratings Screener. Use it to find exactly the stock you're looking for -- c'mon, I know you resolved that this is the year you get more involved in stocks. This is the easiest way yet to make sense of a universe of more than 6,000 names. It's all here, sorted by market cap, rating and more.

At the time of publication, Cramer had no positions in stocks mentioned.






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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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