Mad Money Recap
Cramer's 'Mad Money' Recap: What Yahoo! Should Do
TheStreet.com Staff
10/18/06 - 08:09 PM EDT
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Now that Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) is beginning to stabilize, the Internet giant must "jump-start its growth," Jim Cramer told viewers of his "Mad Money" TV show Wednesday. Cramer, who owns the stock for his charitable trust, Action Alerts PLUS, believes Yahoo! can't grow organically and needs to purchase other companies. Over the next week, Cramer said he's going to give his viewers a list of little Internet companies Yahoo! could buy. The first of these is Bankrate (RATE Quote - Cramer on RATE - Stock Picks), a financial Internet stock that helps people find the "best loans" and makes money from advertising, he said. Bankrate could easily be swallowed up and would enable Yahoo! to "expand its long arm across the Net," Cramer said. He advised buying Bankrate, as he believes the stock will go up as housing returns gradually over the next months.
Peruvian Play
Southern Copper (PCU Quote - Cramer on PCU - Stock Picks) is "a great way to play one of the last capitalist countries [Peru] standing in Latin America," Cramer told his viewers. One of the best reasons to buy this stock is the yield. In fact, if market players bought Southern Copper and it did nothing for a year, they would be up 8% because of its "glorious" dividend, he said. "Even if copper is cheaper, it's in demand," said Cramer, who added that Southern Copper has a "monster upside surprise" coming. The company just opened a big mine and settled a major labor dispute favorable to Southern Copper's management, he said. Plus, this year the company is not hedging. Removing the cost of hedging should cause an "earnings explosion," Cramer said. He advised people to buy Southern Copper on a pullback.Mail It In
In Cramer's "Mad Mail" segment, when a viewer asked him what keeps a stock like Smith & Wesson (SWHC Quote - Cramer on SWHC - Stock Picks) going, Cramer said it did well because its expectations were low, and it got backed by the government on litigation risk. It turns out a lot of Smith & Wesson's money went to lawyers, so when that ended, it had more money, he said.Unhealthy
Cramer told another viewer he has been hurt by UnitedHealth Group (UNH Quote - Cramer on UNH - Stock Picks), which he owns for his charitable trust, Action Alerts PLUS. He said he backed William McGuire, the company's CEO, and McGuire ended up letting him down. He warned one viewer to stay away from after-hours trading and told another that he prefers FedEx (FDX Quote - Cramer on FDX - Stock Picks) to UPS (UPS Quote - Cramer on UPS - Stock Picks).Diversificated
In the "Am I Diversified?" segment of the show, Cramer's first caller owned the following five stocks: Sears (SHLD Quote - Cramer on SHLD - Stock Picks), Apple (AAPL Quote - Cramer on AAPL - Stock Picks), Time Warner (TWX Quote - Cramer on TWX - Stock Picks), AT&T (T Quote - Cramer on T - Stock Picks) and Cephalon (CEPH Quote - Cramer on CEPH - Stock Picks). Cramer said he was "enamored" of the portfolio and that the caller was completely diversified. The next caller named the following five stocks: Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks), Sirius Satellite Radio (SIRI Quote - Cramer on SIRI - Stock Picks), Under Armour (UARM Quote - Cramer on UARM - Stock Picks), Ford (F Quote - Cramer on F - Stock Picks) and Chiquita (CQB Quote - Cramer on CQB - Stock Picks). As the portfolio contained two speculative stocks, Chiquita and Sirius Satellite, Cramer said he could not bless it. Cramer's last caller had these five stocks: Altria (MO Quote - Cramer on MO - Stock Picks), Ford, Valero Energy (VLO Quote - Cramer on VLO - Stock Picks), Yahoo! and Schering-Plough (SGP Quote - Cramer on SGP - Stock Picks). He told the caller his portfolio was well played and well done and blessed it diversified.Lightning Round
Cramer was bullish on Genentech (DNA Quote - Cramer on DNA - Stock Picks), Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), CSX (CSX Quote - Cramer on CSX - Stock Picks), Sinclair Broadcasting (SBGI Quote - Cramer on SBGI - Stock Picks), CBS (CBS Quote - Cramer on CBS - Stock Picks), Disney (DIS Quote - Cramer on DIS - Stock Picks), Wendy's (WEN Quote - Cramer on WEN - Stock Picks), Monsanto (MON Quote - Cramer on MON - Stock Picks), Varian Medical (VAR Quote - Cramer on VAR - Stock Picks), Cognizant Technology (CTSH Quote - Cramer on CTSH - Stock Picks), Reliance Steel (RS Quote - Cramer on RS - Stock Picks), Borders Group (BGP Quote - Cramer on BGP - Stock Picks), Kaydon (KDN Quote - Cramer on KDN - Stock Picks), E*Trade (ET Quote - Cramer on ET - Stock Picks), J.C. Penney (JCP Quote - Cramer on JCP - Stock Picks), Staples (SPLS Quote - Cramer on SPLS - Stock Picks), Nucor (NUE Quote - Cramer on NUE - Stock Picks), LM Ericsson Telephone (ERIC Quote - Cramer on ERIC - Stock Picks), Nokia (NOK Quote - Cramer on NOK - Stock Picks) and Hershey (HSY Quote - Cramer on HSY - Stock Picks).
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