TheStreet.com TV Recap: Game Makers People Play

TheStreet.com Staff

Jim Cramer got into the game -- the game makers -- in a Web video for TheStreet.com TV's Wall St. Confidential Tuesday.

GameStop (GME Quote - Cramer on GME - Stock Picks) is "well run," but for a quick trade Electronic Arts (ERTS Quote - Cramer on ERTS - Stock Picks) may be right, Cramer said.

GameStop is a "generational play" and is not going away, but Cramer said he is curious to see where Take-Two Interactive (TTWO Quote - Cramer on TTWO - Stock Picks) could move.

GameStop at its 52-week high of $31 could be a trade here, he said. People can sell some but they will have to buy it back, Cramer advised. "This is the best-in-show demographic retailer and it continues to do the right thing."

On Take-Two, there are two camps, he told Gregg Greenberg, the host of Wall St. Confidential. The bears are saying Take-Two is "worthless," but the people running Take-Two "are too smart to ignore the total battleground."

Further, Cramer said he's been recommending Sony (SNE Quote - Cramer on SNE - Stock Picks) since Michael Price from Mutual Shares sat him down and said there is a lot of value to unlock at the Japanese giant.

On Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks), Cramer said that even though it was able to sell 20 million Vista licenses, its Zune product "has no take-up."

Moreover, Cramer said that while he's been hearing about all these things that Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) (which he owns for his charitable trust, Action Alerts PLUS), eBay (EBAY Quote - Cramer on EBAY - Stock Picks) and Google (GOOG Quote - Cramer on GOOG - Stock Picks) are doing, there is nothing coming from Microsoft's MSN.

Cramer said he believes Microsoft's Xbox is "really good," but says it can't be a driver for the stock.

Opening the Window

In another segment, Cramer told Greenberg there is such a thing as "window dressing," or the act of moving stocks aggressively on the last day of the quarter. However, it is not something people in the financial business generally want discussed, he said, adding that he neither participated in it nor does he condone it.

Some stocks that might catch bids by Friday include luxury-goods sellers Sotheby's (BID Quote - Cramer on BID - Stock Picks), Coach (COH Quote - Cramer on COH - Stock Picks) and Movado (MOV Quote - Cramer on MOV - Stock Picks), Cramer said.

"These are all winning stocks," he said. Sotheby's is a "great way to play inflation," Coach has "consistently delivered" and is a likely candidate to be marked up, and Movado's going to have an "excellent quarter" and it has a very low multiple, Cramer said.

Drugs

In the drug sectors, Abbott (ABT Quote - Cramer on ABT - Stock Picks) has been "on a tear," and Baxter (BAX Quote - Cramer on BAX - Stock Picks), which is in a "sweet spot," has been consistently delivering "great numbers."

Utilities

In utilities, Cramer said FirstEnergy (FE Quote - Cramer on FE - Stock Picks) is not as bad as it used to be, and Con Ed (ED Quote - Cramer on ED - Stock Picks) has a great yield vs. Treasuries.

Steel

In steel, Cramer said he doesn't know how Cleveland-Cliffs (CLF Quote - Cramer on CLF - Stock Picks) has stayed independent in a sector where there has been "tremendous consolidation." U.S. Steel (X Quote - Cramer on X - Stock Picks) has to go buy it, Cramer said.

However, Reliance Steel (RS Quote - Cramer on RS - Stock Picks) is the one stock he has been behind, and it "still has good valuation."

---