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just took an aim at


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with its Zune music player, but Apple is still the leader of portable music, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

First of all, compared to Apple's iPod product, the Zune is too big and bulky, he said. And second, it comes in three colors, one of which is brown, a hue that is not likely to be popular among the younger set.

Reason No. 3 why Cramer believes the Zune is likely to fail is that its music store is not good compared to iTunes, which is easy to use.

In addition, although he likes Microsoft, Cramer said the company has been unable to reach the right demographic, which is the younger generation, whereas this demographic loves Apple.

He said he finds the Zune, which doesn't even have an original design, "pathetic." Moreover, the rankings for the product, which just

debuted Tuesday, are much lower than expected.

However, none of this is to say Cramer doesn't like Microsoft, because he does. He said he believes the company has done well and people should like it because of its new Vista operating system, not because of the Zune. However, it is no competition for the iPod, Cramer said. The iPod is just one reason among many to own Apple.

"Its laptops are very popular with the college generation," he said. "When you buy a Mac, you are buying a beautiful, easy-to-use machine."

Apple is "the most differentiated brand and only has a tiny bit of market share," Cramer continued, adding that he has never seen an empty Apple store.

Also, when Microsoft launches Vista, people might get frustrated with having to update their systems and turn to Apple.

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In the end, "Apple is an iPod story," which is never-ending, he said. Plus, it has "a ton of financial flexibility," which could translate to buybacks and dividends in the future.

"It could go to $100 by the end of the year," Cramer said. "Apple is invincible thus far." Apple closed at $84.05 on Wednesday.

Am I Diversified?

In the "Am I Diversified" segment of the show, Cramer's first caller held the following five stocks in his portfolio:

Cramer told the caller he could not bless the portfolio as diversified because there was a pair with AU Optronics and Ingram Micro, both of which are tech stocks. He suggested swapping out of Ingram Micro and getting into a financial stock.

Cramer's second caller owned the following five stocks:

Cramer blessed the portfolio as diversified, although he said he doesn't care too much for the exposure to


( CMX), a health care company CVS recently agreed

to acquire.

The third caller named the following five stocks:

Because Duke Energy and Energy East are both utility stocks, Cramer suggested the caller sell Energy East and get into a financial.

Denny's Discussion

Cramer welcomed


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CEO Nelson Marchioli to the show and asked him how quickly the restaurant chain could clean up its balance sheet with its sales.

"Not only have we been positive for the last three months for customer counts, but we have also had positive same-store sales for the chain for 12 consecutive quarters," Marchioli responded. "We have to continue to deleverage, and it shouldn't be much longer.

"We are in the midst of balancing our debt, and we think we will be successful in this quarter," he went on to say.

The fact that Denny's is going to refinance means the stock could go from $4 to $6, Cramer said, adding that it is a better story than he thought.

To view Cramer's interview with Nelson Marchioli, please click here.

In Canada, Trusts

In response to all the email he gets regarding Canadian energy trusts, Cramer told viewers these stocks are worth owning now.

In fact, he said he would rent a U-Haul and back up the truck. Cramer believes two Canadian energy trusts,

Canetic Resources Trust

( CNE) and

Enterra Energy Trust

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, are done going down and ready to bounce.

Even if these stocks don't move one bit, they are worth owning because they are "dividend-ilicious," he said, adding that Canetic offers a dividend of 19%, while Enterra has a 20% yield.

The dividends alone make these stocks attractive to Cramer.

"For years Canada had a rule that allowed any company turned into a trust that passes its income to investors without double taxation of dividends," he explained. But then oil began to fall and the government backtracked on a campaign promise not to tax the trusts as corporations.

The government recently announced that all these energy trusts would get taxed as corporations in four years and so these stocks fell.

Canetic has lost 30% of its value over this one piece of legislation that won't even go into effect until four years from now, he said. "It is way too cheap."

There is also a chance the government might change its mind and retract the law, an event that could cause both Canetic and Enterra shares to jump, Cramer said.

Another Canadian energy trust that Cramer says players could consider getting into is

Pengrowth Energy Trust


, which Merrill Lynch just upgraded this morning.

In addition, Cramer also likes

Baytex Energy Trust

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Precision Drilling Trust

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All five of these stocks are Canadian energy trusts that are bouncing, he said, adding that he believes that market players could catch a bottom here.

In the "Sudden Death" round, Cramer was bullish on

Lundin Mining

( LMC) and


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Lightning Round

Cramer was bullish on





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Yamana Gold

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Tween Brands

( TWB),

J.C. Penney

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Best Buy

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Dick's Sporting Goods

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Procter & Gamble

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Cramer was bearish on

Hewitt Associates

( HEW),

Men's Wearhouse




( TXU),

Pacific Sunwear




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Abercrombie & Fitch

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Genesis Microchip

( GNSS) and


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For more of Cramer's insights during the most recent Lightning Round,

click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


At the time of publication, Cramer was long Altria, Schering-Plough and Sears Holdings.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.