'RealMoney' Radio Recap: Go for Google
Google "deserves to go higher" because of a "paucity" of growth stocks, Cramer told listeners. In his 25 years of investing, Cramer said, now is when he sees "the fewest high-growth stocks available."
Cramer, who has a $350 price target for Google, said the stock will be propelled by mutual funds seeking companies with exceptional growth. Don't listen to the media, he said, which will likely "pooh-pooh" Google as being overvalued.
Google shares traded at $302.93 Thursday afternoon.An emailer wanted to know if it might be time to take profits in GameStop (GME) and Motorola (MOT), two stocks Cramer has been bullish on and which he owns for his charitable trust, ActionAlertsPLUS. Cramer said he was reluctant to sell either stock because he hasn't found any other stocks with similar growth prospects. Cramer added that Motorola CEO Ed Zander is "doing everything right." But if Cramer could find worthy replacements, he "would be selling." An emailer asked if reports of anarchy in the aftermath of Hurricane Katrina might spur more people to buy guns. Cramer said if you believe that will happen, he would recommend Smith & Wesson (SWB), adding that he thinks the stock "should be bought" regardless, based on its fundamentals. A caller wanted to know if Ruth's Chris Steak House (RUTH) was a buy. Cramer believes it is. The company was forced to move its headquarters to Orlando, Fla., from New Orleans and suffered damage to two of its restaurants in New Orleans from the hurricane. The stock is down about 15% since, a "ridiculous overreaction," said Cramer. He believes the company "will recover from the hurricane and will prosper." Ruth's Chris traded at $18.04 Thursday afternoon.
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