Cramer's 'Mad Money' Recap: The Desired Dozen

05/10/07 - 07:46 PM EDT

TheStreet.com Staff

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


"Tonight's show is dedicated to my favorite Disney (DIS Quote - Cramer on DIS - Stock Picks) attraction: It's a small world," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

On Wall Street, it is a small world because there's a small universe of stocks that are so loved that the hedge funds and mutual funds just can't get enough of them, he said. On most days, these stocks go higher, but now the market is coming down, so "it's time for you to get a piece of them," Cramer told viewers.

In the last half-dozen years, things have changed radically on Wall Street, he explained. There are some big trends that have contributed to making up this small world of stocks every fund manager wants to buy.

The first trend is that positions taken by mutual funds need to be bigger when they come into the market, Cramer said. They can't just buy 100,000 shares. It doesn't work anymore, he said. Instead, they need to buy millions of shares to make an impact.

And second, the stocks of the companies everyone wants to own are shrinking as companies continue to retract their stocks, Cramer said. As fund- and company-buying overwhelms supply, these stocks are soaring higher.

This is the anatomy of stocks that are going up, he said. "It's supply being overwhelmed by demand." And given that everyone knows that the funds are "rapacious" about these stocks, nobody wants to sell them, Cramer said.

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