Mad Money Recap
Cramer's 'Mad Money' Recap: A Monster Trade
TheStreet.com Staff
04/17/07 - 07:41 PM EDT
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Jim Cramer offered some special advice to Gannett (GCI Quote) on his "Mad Money" TV show Tuesday. Cramer wants Gannett, which he called "a proud newspaper company that's trying to stay relevant," to pick up the phone and tell its banker that it wants to buy Monster Worldwide (MNST Quote). If Gannett doesn't make the "wise decision" to purchase the online job listing firm, Google (GOOG Quote) could beat the newspaper company to the punch and "swallow Monster up," he said. Market players should buy Monster, too, Cramer advised. Monster is a trade because it's a "logical takeover target." Gannett, Cramer said, is slowly falling. "Its business isn't viable long-term anymore." He believes a Gannett acquisition of Monster would make sense because Gannett is already invested in the online job market with CareerBuilder.com. "By buying Monster, [Gannett] can swap from a dying industry to a vibrant one," Cramer said. Monster recently had a "shortfall," he said, but this made it "affordable" for Gannet to purchase it. Moreover, there are two factors that make Cramer believe Monster wants to be put up for sale. First, Monster has a new CEO, Sal Iannuzzi, who Cramer believes was appointed to the position "to make a deal."
plays, Cramer said.
Even if Gannett doesn't buy Monster, Google should, he said.
Two Sun-Powered Stocks
On April 2, with the Supreme Court's decision in the Massachusetts vs. Environmental Protection Agency case, "the government made it profitable for companies to cut down on pollution" and go green, Cramer told viewers. As a result, all green stocks now have to be re-evaluated, he said. As part of his weeklong "Green Day" series, Cramer named his top two solar picks: First Solar (FSLR Quote) and MEMC Electronic Materials (WFR Quote). First Solar, a name Cramer has been recommending since March 7, is "the most economically efficient solar company," he said. Cramer said he's "still behind it 100%" and is looking for a pullback to sink his teeth into First Solar. MEMC Electronic has "a stranglehold on silicon wafers, the key components to most solar panels," Cramer said. The stock, he continued, is up 247% since he recommended it last Halloween. Because both stocks are up, Cramer advised investors to be patient. The stocks "are going to catch a downdraft," he said. "Buy them down, not up here."A Superior Offshore IPO Here
Superior Offshore International, a company involved in subsea-construction services, is set to come public under the symbol DEEP and should start trading this Friday, Cramer said.
There are a few reasons, he told viewers, that he believes this initial public offering deserves consideration. First, DEEP has great earnings and fundamentals, Cramer said, and it has been priced at a "reasonable" range of $14 to $16 a share.
In addition, DEEP's competitors, such as Nabors (NBR Quote) and Halliburton (HAL Quote) -- shares of which Cramer owns for his Action Alerts PLUS charitable trust -- are doing well, Cramer said.
He advised market players to first do their homework and then place an order to buy 100 shares of DEEP by Wednesday or Thursday morning at the latest. Further, Cramer said he would be willing to pay up to $20 a share for the stock.
Most of DEEP's business is in the Gulf of Mexico, but it is expanding to deepwater, he said. And the company is not just about new drilling; it also repairs and maintains current drilling activity, Cramer went on to say.
"There are still years of repair work left after [Hurricane] Katrina, and hurricane season is supposed to pick up this year," he said. "It could be your play for repairing infrastructure after storms hit."
Cramer called it a "great company," with "real profits" in a sector that's doing "increasingly well."
Saks in the Bag
Cramer welcomed Saks (SKS Quote) CEO Stephen Sadove to the show by telephone, asking the chief exec how he turned his company around. Sadove said the retailer's turnaround is "still early in the game" but that its success has a lot to do with a "great team, clear strategies and clear focus on execution." Part of it also had to do with getting people to own equity in the company, understanding customer needs and making stores more productive, he added. Furthermore, Sadove reassured viewers that the appointment of Saks' new CFO is absolutely normal and that Kevin Wills has been internal to the company, has a great amount of experience and is a great asset to the team. Cramer said Coach (COH Quote), Ralph Lauren (RL Quote) and Saks are all companies people "can bet with." People should take the fact that the stock has "flat-lined" as an opportunity to buy Saks, Cramer said. To view Cramer's interview with Stephen Sadove, please click here. During the show's "Sudden Death" round, Cramer was bullish on PDL BioPharma (PDLI Quote), United Online (UNTD Quote) and Vertex Pharmaceuticals (VRTX Quote).Lightning Round
Cramer was bullish on Amgen (AMGN Quote), GOL Linhas Areas Inteligentes (GOL Quote), Bank of America (BAC Quote), Jones Soda (JSDA Quote), American International Group (AIG Quote), Flowserve (FLS Quote), Rigel Pharmaceuticals (RIGL Quote), Nastech Pharmaceutical (NSTK Quote), Cemex (CX Quote), Homex Development (HXM Quote) and Lundin Mining (LMC Quote).Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by clicking here.