Cramer's 'Mad Money' Recap: GameStop, Look and Listen
08/22/07 - 07:59 PM EDT
TheStreet.com Staff
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When there's a trade that is "too good to miss," I have to point it out, said Jim Cramer on his "Mad Money" TV show Wednesday. Though Cramer likes "fun short-term plays," he cautioned viewers that the whole picture needs to be looked at before the trigger is pulled. Cramer called the Sept. 25 release of Halo 3, the flagship franchise of Microsoft's(MSFT Quote - Cramer on MSFT - Stock Picks) Xbox video-game system, the "biggest video game event of the year." Cramer believes that Halo 3 will not only sell video games but also Xbox 360 consoles. But because its games division makes up a small part of the company, profit from Halo won't really move Microsoft's needle. The play here for investors is GameStop (GME Quote - Cramer on GME - Stock Picks), the largest video-game retailer in the U.S. Cramer likes the company, which is up more than 33% since Cramer called it a buy in March, because of the "great season for tech" to come and because in video-game culture, games are a "staple" like toothpaste and will be bought regardless of economics. However, Cramer told viewers not to buy GameStop "today or tomorrow" but to buy it on any weakness after Thursday's postearnings conference call -- provided it makes its numbers. But if the company misses the EPS estimate of 9 cents to 13 cents, Cramer said to forget the trade.
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