Cramer's change of heart in Starbucks came after Schultz called him to assure him he would do whatever it takes to turn the company around. Cramer said he believes him.
According to Cramer, the best way to scale a position in Starbucks is to buy one-quarter of the position now, another quarter a week from now, and the remaining half after the company reports at the end of January.
A Lot More to Do
Next on the list of "resignations" is Jimmy Cayne, CEO of
Bear Sterns (BSC Quote - Cramer on BSC - Stock Picks), who was just replaced by Alan Schwartz. This stock has fallen from $172 to $71.
Bear is a firm that's now known for its exposure to mortgage-backed bond trading, Cramer points out, "and changing the CEO won't fix that." Bear Sterns is a stock that investors should not touch, Cramer said. The company has a lot more work to do to clean up its reputation and balance sheet.
Cramer recommended
Merrill Lynch (MER Quote - Cramer on MER - Stock Picks) as an alternative to Bear Sterns. Merrill, he points out, is a stock with solid management, an indestructible brand, and a substantial retail network. Cramer feels Merrill has already cleaned house and is laying the ground work for future success.
Broken Companies
Cramer reminded viewers that he still prefers
Goldman Sachs (GS Quote - Cramer on GS - Stock Picks) over all other brokers, but now feels Merrill is getting attractive.
TheStreet.com Staff
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