NEW YORK ( TheStreet) -- Investors who want to supercharge their portfolios need to look for stocks that have successfully changed their business model, Jim Cramer told his "Mad Money" TV show viewers Tuesday, as the Dow Jones Industrial Average eclipsed the psychological 13,000 barrier.
Cramer said that companies who have changed their model, but are still unrecognized by Wall Street or panned by the pessimists, make for terrific investing opportunities.Consider Priceline.com (PCLN), a stock that soared up $41 a share, or 7%, on the heels of its strong earnings. Cramer said this company successfully changed its business, from a negotiation-centric model, to one where travelers can save on just about everything with no negotiating needed. The result? Not only strong earnings, but also strong upside guidance from the company. Cramer said Priceline now has great earnings visibility and is in control of its own destiny, leaving the analysts with no choice but to upgrade their forecasts. Cramer said this same pattern has popped up in Apple (AAPL), a stock which he owns for his charitable trust,
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