Cramer's 'Mad Money' Recap: What Yahoo! Should Do

10/18/06 - 08:09 PM EDT

TheStreet.com Staff

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


Now that Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) is beginning to stabilize, the Internet giant must "jump-start its growth," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Cramer, who owns the stock for his charitable trust, Action Alerts PLUS, believes Yahoo! can't grow organically and needs to purchase other companies.

Over the next week, Cramer said he's going to give his viewers a list of little Internet companies Yahoo! could buy.

The first of these is Bankrate (RATE Quote - Cramer on RATE - Stock Picks), a financial Internet stock that helps people find the "best loans" and makes money from advertising, he said.

Bankrate could easily be swallowed up and would enable Yahoo! to "expand its long arm across the Net," Cramer said.

He advised buying Bankrate, as he believes the stock will go up as housing returns gradually over the next months.

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