Cramer's 'Mad Money' Recap: Broker Bargain Bin

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

---

A week from now, it will be time to buy Bear Stearns (BSC Quote - Cramer on BSC - Stock Picks), Lehman Brothers (LEH Quote - Cramer on LEH - Stock Picks) and Goldman Sachs (GS Quote - Cramer on GS - Stock Picks), Jim Cramer told viewers of his "Mad Money" TV show Friday.

Goldman Sachs (a stock Cramer owns for his Action Alerts PLUS charitable trust), Lehman and Bear report earnings on Tuesday, Wednesday and Thursday, respectively. Cramer believes that one week from now the analysts that follow these "big three" brokerage firms will have given all the downgrades they're going to give. He predicts that on Friday, when the three are "painfully low," market players will be able to get "incredible bargains" in these stocks.

Cramer believes the bears will have to push the brokers down even if they report good numbers "in order to frighten people into selling."

"Stocks react to whoever shoots first, not how good the numbers are," Cramer explained. "And right now the bears have to shoot first."

When a quarter comes out, it becomes "imperative" for the bears to lie and spread rumors to send the stock down, he said. For those who believe that Cramer's being "too cynical," he reminded viewers that he's been in this game for decades and that "when the bears are out to destroy a stock, they will do it."

"The bears will paint the tape in bright red, which is sell," Cramer said. Then on Friday, people will be able to buy "some of the best companies around."

Other than this, according to Cramer's game plan for the coming week, J. Crew (JCG Quote - Cramer on JCG - Stock Picks) "is the only other company worth banking on next week." Cramer said people should consider getting into J. Crew before it reports on Tuesday, because, even though this trade involves some risk, he believes the retailer is set to have a great quarter.

« Previous Page

1 2 3 4

Next Page »