Mad Money Recap
Cramer's 'Mad Money' Recap: Get In the GameStop
TheStreet.com Staff
08/22/06 - 07:51 PM EDT
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The best way to make money off the new Madden NFL 2007 video game that was released today is GameStop (GME Quote - Cramer on GME - Stock Picks), Jim Cramer told viewers of his "Mad Money" TV show Tuesday. Although Electronic Arts (ERTS Quote - Cramer on ERTS - Stock Picks) 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 Quote - Cramer on TTWO - Stock Picks) 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.The Tao of Dow
Cramer said that he has a stock with insider buying that can make you some money. First, he clarified that a stock that has insider buying doesn't necessarily make people money. For example, Cramer said insiders are buying Vonage (VG Quote - Cramer on VG - Stock Picks), but Cramer said that is a stock that's not going to make anybody money. "The insiders are buying it because they want to provide investors with a false sense of confidence," he said. In fact, this is the "worst-performing IPO of the year." On the other hand, when insiders started buying stock at Dow Chemical (DOW Quote - Cramer on DOW - Stock Picks), shareholders there caught a quick gain. Similarly, Cramer said the next stock with insider trading that might make market players money is Dynegy (DYN Quote - Cramer on DYN - Stock Picks). Cramer, who has been a consistent backer of this stock, said it's "still not out of steam." Not only does the stock have "massive insider buying," but upon doing further homework, Cramer believes it is due for a takeover bid because first, its financials are improving, and second, its industry is consolidating. "Right now, Dynegy is going through a complicated restructuring," he said. "It's been selling off its midstream operations and paying off its debt aggressively."At Its Core
Cramer asked his guest, Core Laboratories' (CLB Quote - Cramer on CLB - Stock Picks) Chairman and CEO David Demshur to explain to the viewers what his company actually does. "Core Labs does two things," Demshur responded. First, it helps oil companies produce more oil and gas every day, and more importantly, it helps companies produce more oil and gas over the life of a field, he said. "There are about 4,000 oil fields today, and we work on 800 fields," Demshur said. "We take the core and we bring it back to our labs, analyze it and understand how the fluid runs through the rock so we can extract more from it and leave water behind." Cramer called this the "ultimate play" to get into while oil is up this high. To view Cramer's interview with David Demshur, please click here.