Cramer's 'Mad Money' Recap: Coaling a Bottom
SanDisk's Music Appreciation
SanDisk (SNDK - Get Report) CEO Eli Harari joined Cramer by telephone on the show. Cramer asked Harari why his company was getting into the MP3 music player market when every company except Apple (AAPL - Get Report) has failed with it.
Harari said he believes the biggest market for music worldwide will ultimately be cell phones equipped with music capabilities.
Cramer said he agreed and asked Harari if SanDisk's competitor, Samsung, is possibly losing money on its deal with Apple to supply chips for Apple's new iPod nano given the nano's pricing.Harari said he did not believe Samsung was losing money on the deal. But, he said through the nano, Samsung was upstaging and displacing micro-hard drives with its flash memory chips, which is good news for SanDisk in that it helps open up new markets. Cramer asked Harari what percentage of cell phones will have slots for flash memory cards in 2006. Harari said 150 million out of roughly 700 million handsets produced in 2005 would have flash memory card slots, and the market would continue to grow in 2006. Music downloads should fuel that growth, he said. Commenting on its multilevel-cell (MLC) technology, Harari said SanDisk had licensed the technology to Intel (INTC - Get Report), Samsung, Toshiba and Hitachi (HIT), and his company is suing STMicroelectronics (STM - Get Report) over the technology. Cramer summed up the interview saying SanDisk "is the best-performing stock in tech," and it is going higher, he said.
Lightning RoundBullish Cramer was bullish on Sirius Satellite Radio (SIRI - Get Report), Lucent Technologies (LU), Lowe's (LOW - Get Report), Exxon Mobil (XOM - Get Report), Intermagnetics General (IMGC), GenCorp (GY - Get Report), LeapFrog Enterprises (LF), Sonic (SONC - Get Report), America Movil (AMX - Get Report), Pike Electric (PEC), St. Jude Medical (STJ - Get Report), Weyerhaeuser (WY - Get Report), Dresser-Rand Group (DRC - Get Report), Netflix (NFLX - Get Report), National Oilwell Varco (NOV - Get Report), Aqua America (WTR - Get Report) and Chesapeake Energy (CHK - Get Report). Bearish Cramer was bearish on Home Depot (HD - Get Report), Amylin Pharmaceuticals (AMLN), TransGlobe Energy (TGA - Get Report), Fastenal (FAST - Get Report), Applied Materials (AMAT - Get Report), Petrobras Energia Participaciones (PZE - Get Report), First Marblehead (FMD), Brightpoint (CELL), Synovus Financial (SNV - Get Report), Vail Resorts (MTN - Get Report), Forward Industries (FORD - Get Report), Hewlett-Packard (HPQ - Get Report), Nortel Networks (NT) and Blockbuster (BBI).
Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|
|Check back for more of Cramer's Rules|
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