Mad Money Recap

Return to Article

Cramer's 'Mad Money' Recap: Switch On ValueClick

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.

Many people dream of holding a stock that will blow through the roof overnight. Jim Cramer, who believes it's his job to make this dream a reality, offered his best bet for such a rocket stock play to viewers of his "Mad Money" TV show Monday.

Immediate, enormous gains happen all the time, whenever a company gets taken over, Cramer said. One of the companies he believes is next in line to get bought out is online marketing firm ValueClick (VCLK Quote).

ValueClick, he said, belongs to the same family of stocks as DoubleClick(DCLK Quote), which Google (GOOG Quote) is buying, and aQuantive, which Microsoft (MSFT Quote) bought earlier this year.

Back in April, Cramer said aQuantive and ValueClick could get bought. He was right about aQuantive and he believes he will be right about ValueClick.

Before Microsoft's acquisition of aQuantive, aQuantive was in merger talks with ValueClick, Cramer explained. Now Brian McAndrews, the former CEO of aQuantive, is a "key player" in Microsoft's online ad business, and Cramer believes ValueClick still has a chance of getting bought out.

Microsoft might make this "defensive acquisition" of ValueClick, or there's a possibility Yahoo! (YHOO Quote) could pick it up if it wants to stay competitive, he said. Either way, ValueClick should get a "gigantic takeover premium."

In the case that ValueClick doesn't get taken over, the stock should still perform well, Cramer said. Its fundamentals are good and it's in the sweet spot of a hot industry: Internet advertising. "It is a triple buy."

Jumping Jakks

"Going into the holiday season, how would you like to own the next Mattel (MAT Quote)?" Cramer asked viewers.

Jakks Pacific (JAKK Quote), which has a lot of great toys, is that stock, he said. People should want this stock for its Hannah Montana, World Wrestling Entertainment (WWE Quote) and Pokemon figurines.

Usually Cramer doesn't like to talk about trades on his show because people often don't have the time to monitor trades, but Jakks is "irresistible," he said, and could be bought as a trade or investment.

On Wednesday, Jakks is hosting a big analyst meeting, and if the company preannounces better-than-expected numbers for the fourth quarter it could shoot higher, Cramer said.

The stock closed Monday at $26.65 -- that's the price Cramer said he likes. If it leaps up, the trade will not work, he said, warning market players not to buy it for a trade if it climbs above $28.75. "Any higher you will lose money," even if it preannounces great numbers on Wednesday.

Cramer said he likes how Jakks is positioned right now. The company has $83 million in net cash and its free cash flow could reach $100 million soon, he said. With that, Jakks could buy smaller stores or buy back shares. Plus, it's trading at its growth rate and at "a big discount" to Hasbro (HAS Quote) and Mattel, Cramer continued.

Trends come and go, but Jakks brands have staying power. It's possible Jakks could lose its right to market WWE toys, but Cramer said he's not that worried about it.

He advised people to buy it for the long term or the short term, but not for both.

On the Defensive Line

New York Giants defensive lineman Michael Strahan joined Cramer in the studio to tackle finance together.

The seven-time NFL Pro Bowler talked to Cramer about his new book, Inside the Helmet: Life as a Sunday Afternoon Warrior. The book, Strahan said, answers a lot of questions fans have always asked him, not only about money and his divorce, but also about player injuries and what really goes on in the locker room.

"If you're going to write a book, you tell the truth," he said. "I would rather tell the truth than figure how to lie about a lie."

Regarding his finances, Strahan told Cramer he is very conservative and realistic about investing. "I don't want to take a dollar and make a million off of it," he said. "I'm in mutual funds. I'm global."

Strahan also owns one stock, Under Armour (UA Quote), which he said he got into during the company's initial public offering. Since buying Under Armour, Strahan said, his costs have been covered and he is operating on profits.

When Cramer asked if a lot of players are broke when they retire, Strahan said he wouldn't be surprised if many were. "When you're a player, you have to trust people," he said. There are a lot of schemes out there. Strahan said he has been fortunate, but he's sure there are some players that might be in a lot of financial difficulty.

Despite the injuries and pain associated with the game, Strahan said it has all been worth it. "I'm 35 and I could retire," he said. "It's been a long journey to get where I am and I appreciate everything I have."

Mad Mail

In his "Mad Mail" segment, in which Cramer answers viewer letters, he explained that a global company like Caterpillar (CAT Quote), which has substantial international exposure, is not a hostage of the U.S. GDP. This is part of the reason he likes Caterpillar so much. It's a stock he owns his Action Alerts PLUS charitable trust.

Responding to another viewer query, Cramer warned against trading after hours. "Everything you do will be completely wrong if it's done after hours," he said. "Wait until the next morning and use limit orders."

Lightning Round

Cramer was bullish on Indevus Pharmaceuticals (IDEV Quote), Nastech Pharmaceutical (NSTK Quote), Foster Wheeler (FWLT Quote), Halliburton (HAL Quote), AT&T (T Quote), Consolidated Edison (ED Quote), Verizon (VZ Quote), GameStop (GME Quote), Transocean (RIG Quote), Diamond Offshore (DO Quote), China Digital (STV Quote), McDonald's (MCD Quote), Yum! Brands (YUM Quote), Intel (INTC Quote) and ConocoPhillips (COP Quote).

Cramer was bearish on Great Lakes Dredge & Dock (GLDD Quote) and InterDigital (IDCC Quote).

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the most recent Lightning Round, click here.