Cramer's 'Mad Money' Recap: Higher Learning

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Professor Gadget

"It's going to be a Best Buy (BBY) Christmas," said Jim Cramer on his "Mad Money" TV show Wednesday.

Whether it's Christmas shopping, Hanukkah or Kwanzaa, kids want electronic gadgets like the iPod, Sony PSP, and Microsoft's(MSFT) Xbox 360, he said.

Adults want high-end TVs, which have come down in price to the point where they're "almost affordable for regular people," said Cramer.

Cramer said a couple things to watch out for, though, when buying the stock of Best Buy, are competition from Wal-Mart (WMT) in the form of lower-priced extended warranties, which are a big source of profit for Best Buy, and possible not-so-hot third-quarter results, scheduled to be released Dec. 13.

If the quarter isn't so hot, said Cramer, he would use that as a 'mon back* buying opportunity.

In response to a question about GameStop (GME), Cramer said the company's stock has sold off this week because it sold out of its supply of Xbox 360s on the first day the game system was released.

However, once supply catches up to demand and people start buying games, "all those video games are going to be for sale at GameStop," he said. "This is a classic 'mon back situation."

Commenting on when to sell Best Buy, Cramer said if one wants to approach Best Buy as a trade, the time to sell would be on the last day of the year. The big money will be made after Christmas but before the New Year, he said.

Honor Roll

Cramer is bullish on ITT Educational Services (ESI) because Congress may repeal a rule that requires for-profit colleges to teach 50% of their classes in buildings.

For-profit schools are growing four times faster than nonprofits, he said, and that means for-profit online schools will be eligible for more "juicy financial-aid money." If the repeal goes through, it is expected to add $3 billion to $4 billion to an $18 billion industry over the next decade, said Cramer.