Get Even More Bullish on the Dow, Part 3

JPMorgan Limited by management

JPMorgan(JPM): Maybe in 2007 we will remember why we liked Jamie Dimon so much. We sure haven't seen anything yet out of the man. His company's stock has languished even as the stocks of other banks, particularly investment banks, have made a good move. I believe the lag in JPMorgan is caused by the combination of the worst of banking and the least impressive work of investment bankers who carry themselves as if they were the best of both. That's a lethal combination of arrogance and not as much competence as they think they have. I see the stock only advancing to $52, max, unless the company gets a bid, which certainly could happen if you are a European bank. I just can't see Dimon going for it, because he is pretty sure of himself -- too sure to be sure!

McDonald's Chronically undervalued

McDonald's(MCD): Even after the move in McDonald's, there's more ahead, maybe much more. I believe this company suffers from chronic undervaluation, given how much better it is than all of its competitors. I see it giving shareholders ever-higher dividends and receiving a much higher multiple on weak-dollar-related earnings. I see the company trading to $55. I'd love to buy this one.

Editor's note: This is Part 3 of Jim Cramer's review of the prospects for the stocks that make up the Dow 30. Be sure to read Part 1, Part 2 and Part 4.

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