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NEW YORK (
) -- "The time when
Chairman Ben Bernanke knew nothing has long since past," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.
Cramer said it's been over two years since his infamous 2007 "they know nothing" rant, and today he said that
magazine's "Man Of The Year" moniker is much more fitting for Bernanke.
Cramer said in retrospect, Bernanke didn't see the apocalypse coming. The Fed chair was raising interest rates right up until the crash, and even ridiculed Cramer for his incendiary remarks. Shortly thereafter, a wave of foreclosures overtook the markets, unemployment rose up over 10%, and high profile companies, such as Washington Mutual, Lehman Brothers,
, began to fail in spectacular fashion.
But Cramer said after the crash began, Bernanke did "get it," and swung into action in a big way. He said the Fed chair called the bottom in March, when he assured the markets there would be more bank nationalizations. Bernanke lowered interest rates, added liquidity, bought over $1 trillion of mortgage back loans, and offered whatever assistance he could to save failing companies, he said.
"Yes, he was late," said Cramer, "but he got it right when it really matter." And that's why he said he's not quick to criticize Bernanke now, as did the markets today, for not taking a more aggressive stance on inflation.
Cramer said Bernanke is a student of history, and knows well the problems associated with taking away stimulus too soon. He said with the president not helping the country's economic agenda, Bernanke needs to act alone. "Bernanke knows more than you and me," said Cramer, "and deserves his 'Man Of The Year' award."
Sticking With Best Buy
"Did we blow it? Were we wrong?" These were just two of the questions Cramer asked himself after recommending electronics retailer
in last week's game plan segment.
Cramer said he recommended Best Buy on Dec. 2, calling the company the best retail play for the holiday season. He again called the stock a buy last week, encouraging viewers to buy the stock ahead of the company's earnings this week. These recommendations were wrong, he said candidly.
Cramer said while Best Buy did exactly what he expected, beating expectations by 10 cents a share, raising guidance, and announcing strong same-store sales, the stock still tanked 8.5% on the news.
The bears cited conservative margin guidance, slowing international sales and increased competition as reasons not to like the stock. But Cramer disagreed, and said he still likes the stock, even though his timing in recommending it was flawed.
After thoroughly reviewing the company's earnings, Cramer said his thesis for liking it is in tact, and he's sticking with his $50 price target on the stock. He said the company's lower margins are stemming from low-margin netbook computers and entry-level TVs, not from extensive discounting.
Cramer also noted several new product cycles helping to boost sales. And while international sales may have weakened, sales in Canada are already on the rebound.
Cramer said he was definitely wrong to recommend Best Buy ahead of the quarter, especially given its history of selling off on earnings news. But given the strength of the company's business, Cramer said the stock will have no trouble getting to $50 a share, which is nine points higher than his original Dec. 2 recommendation.
Dreamliner's Pin Action
new 787 Dreamliner finally in the air, a new aerospace cycle is upon us," Cramer told viewers. But the easy money's been made in Boeing, he said, which means it's time to look for the pin action.
Cramer said the way to play Boeing's new flagship, fuel-efficient plane is through its suppliers. He said the suppliers are more levered to new plane models, and will participate the most in this new aerospace cycle, which will likely span the next seven years.
remains Cramer's favorite parts supplier. He said the company makes fasteners and engine components for the Dreamliner, and is estimated to earn $5.5 million for every plane produced. Trading at just 14.5 times its earnings, Precision Castparts is cheap, he said.
Also on the list is
, which is likely to derive 22% of its revenues from the Dreamliner. That's $1.3 million to $1.6 million in revenue for every Dreamliner made, he said.
Rounding out the group, Cramer also likes
, which makes the nose-cone and and wing components,
, which makes wheels and brakes, and
, which provides cockpit controls.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Procter & Gamble
Cramer said Apple and IBM are not two of a kind, adding he thinks this portfolio is fine.
The second caller's top holdings included
Energy Conversion Devices
Cramer said he'd bless this portfolio, although it's a little too speculative for his taste.
The third caller had
as their top five stocks.
Cramer said the portfolio was picture perfect.
Cramer was bullish on
He was bearish on
Research In Motion
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Cooper Industries, Procter & Gamble, Pepsico.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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