Cramer's 'Mad Money' Recap: Top Three Value Stocks for '07

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Jim Cramer continued an annual tradition on his "Mad Money" show Wednesday by offering some of his forecasts for the coming year.

He predicted the Dow Jones is going to close 17% higher at 14,582 in 2007 and named his top three value stocks of the year.

Last year, Cramer tapped only one stock of the year -- Allegheny Technologies (ATI), which turned out to be the "single best-performing stock in the S&P 500." But this year, he said he's learned that people don't want one stock of the year; they want a menu to pick from.

As there are three types of stocks -- low-risk value stocks for conservative investors, higher-risk growth stocks, and speculative stocks for "bungee jumpers" -- Cramer said he is going to spend the rest of the week naming his top three in each category.

Howdy, Halliburton

Starting with his top value plays, Cramer named Halliburton (HAL), which he owns for his charitable trust, Action Alerts PLUS, as his third value pick.

"When we look for value, we're looking for stocks with not much downside," he said. "These are stocks that let you sleep at night because the downside is quantifiable."

Everyone should have some value stocks in their portfolios, Cramer went on to say. Although many people hate this stock, he believes it is "too cheap," and if it stays that way, it could go private.