Jumping Jakks
"Going into the holiday season, how would you like to own the next
Mattel (MAT Quote - Cramer on MAT - Stock Picks)?" Cramer asked viewers.
Jakks Pacific (JAKK Quote - Cramer on JAKK - Stock Picks), which has a lot of great toys, is that stock, he said. People should want this stock for its Hannah Montana,
World Wrestling Entertainment (WWE Quote - Cramer on WWE - Stock Picks) and Pokemon figurines.
Usually Cramer doesn't like to talk about trades on his show because people often don't have the time to monitor trades, but Jakks is "irresistible," he said, and could be bought as a trade or investment.
On Wednesday, Jakks is hosting a big analyst meeting, and if the company preannounces better-than-expected numbers for the fourth quarter it could shoot higher, Cramer said.
The stock closed Monday at $26.65 -- that's the price Cramer said he likes. If it leaps up, the trade will not work, he said, warning market players not to buy it for a trade if it climbs above $28.75. "Any higher you will lose money," even if it preannounces great numbers on Wednesday.
Cramer said he likes how Jakks is positioned right now. The company has $83 million in net cash and its free cash flow could reach $100 million soon, he said. With that, Jakks could buy smaller stores or buy back shares. Plus, it's trading at its growth rate and at "a big discount" to
Hasbro (HAS Quote - Cramer on HAS - Stock Picks) and Mattel, Cramer continued.
Trends come and go, but Jakks brands have staying power. It's possible Jakks could lose its right to market WWE toys, but Cramer said he's not that worried about it.
He advised people to buy it for the long term or the short term, but not for both.
TheStreet.com Staff
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