Mad Money Recap
Cramer's 'Mad Money' Recap: The Next Big Pop Stock
TheStreet.com Staff
03/30/07 - 07:40 PM EDT
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Jim Cramer kicked off Speculation Friday by telling viewers of his "Mad Money" TV show that he wants to find them the next Hansen Natural (HANS), a beverage stock he "nailed." Hansen, he said, "is the kind of grand slam everyone wants a piece of." Now Hansen is "played out," Cramer said, especially because JPMorgan gave it an "untimely upgrade" this morning. But the next "big play" he sees in the beverage market is Jones Soda (JSDA). Cramer said he sees a lot of similarities between the two beverage makers. For example, like Hansen, Jones Soda sells alternative beverages targeting a younger demographic, which is likely to be more loyal to the beverage brand, he said. Also, both Hansen and Jones Soda grew out of the western U.S. and have western-centric markets, Cramer said. In the beginning, Hansen had only a couple of analysts covering it; similarly, right now there are only three analysts covering Jones Soda, but this number should increase as the company gets bigger and its stock goes higher, he said. And because Cramer believes "it pays to be a cynic," he pointed out the dissimilarities between the two as well. Jones, unlike Hansen, hasn't participated in the "energy drink craze," he said. Instead it is "capitalizing on a laggard soda industry," as the alternative to Coca-Cola (KO) and Pepsi (PEP).
BOD: RadioShack, Sears
On Friday's installment of Cramer's new "Benefit of the Doubt" series, he focused on two retailers: RadioShack (RSH) and Sears (SHLD), which he owns for his Action Alerts PLUS charitable trust. RadioShack's Julian Day and Sears' Eddie Lampert are two company heads who are "hated by Wall Street for trying to make money rather than making analysts happy," he said. Starting with Day, Cramer said the CEO is "restoring profitability" before he starts thinking about new strategies. First RadioShack needs to be run as a business regionally, he said, rather than sell all the same products in all the stores, whether it's practical to do so or not. Cramer said he won't argue that both RadioShack and Sears are "broken" retailers, but RadioShack is trying to make money while it tries to fix itself. Day gets nothing but disrespect from the Street, but he's doing what he should be doing, said Cramer, who added him to his BOD list. Meanwhile, Lampert is fixing Sears "brick by brick," Cramer said, but critics can't give him the benefit of the doubt because they think he couldn't resuscitate Kmart. Lampert applies Wall Street strategies to his business to hedge, which Cramer believes is a smart move.
With Lampert at the helm of Sears, investors are getting not just a retailer but someone with a Wall Street edge. Sears will soon be resolved, said Cramer, and he believes people should get in.
Cramer's Game Plan
During the show's "Game Plan" segment, Cramer told viewers there are three things worth looking out for next week: two initial public offerings and a quarterly report. Veraz Networks is a telco equipment company going public next week under the ticker VRAZ. "I want you in this one," Cramer said. The IPO should price between $10 and $12, but Cramer said he would be willing to pay up to $14 a share for the stock. He advised getting into the IPO via its lead bookrunners, Credit Suisse and Lehman Brothers. The second IPO will be for Comverge, an energy technology company that will trade under the symbol COMV. This is an offering Cramer said he'd be attracted to if the bookrunners lowered the entry price. Its price range is currently $15 to $17, but Cramer said he can't endorse buying it for more than $12.50. Finally, Best Buy (BBY) reports its quarterly results on Wednesday, and now that Circuit City (CC) is "blinking" and cutting stores, Cramer said, people need to see how bad Best Buy's quarter is. He advised buying the retailer after it goes down but said he doesn't like it as much as he likes GameStop (GME).Mad Mail
In his "Mad Mail" segment, Cramer told a mailer he believes Dell (DELL) is "totally dead money." He recommended Hewlett-Packard (HPQ), which he owns for his charitable trust, as a "better, cheaper" PC company. He told another viewer he likes AAR (AIR), has liked it for many years and is not backing away from it. Further, Cramer told a separate mailer he believes GOL Linhas Areas Inteligentes (GOL) is going from $30 to $40.Lightning Round
Cramer was bullish on Supervalu (SVU), Safeway (SWY), ValueClick (VCLK), American Capital Strategies (ACAS), Allscripts Healthcare Solutions (MDRX), United Technologies (UTX), Goodyear Tire (GT) and NYSE (NYX). Cramer was bearish on Ahold (AHO), Blockbuster (BBI) and Acadia Pharmaceuticals (ACAD).Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by clicking here.
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