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There are brighter days ahead for the
, Jim Cramer told viewers of his "Mad Money" TV show Thursday.
It may seem unlikely after today's "horrible action," but Cramer said he still believes the Dow will reach his target of 14,548 by year-end. Annually, Cramer gives his predictions for the Dow, and last year
the Dow closed at 12,463, only 7 points below his target of 12,470.
The 30 stocks that the Dow comprises should take this index higher, he said, and all week Cramer has been assessing six Dow stocks a day.
He started today's segment with
At the beginning of the year, he'd said that it could trade at $110.
IBM has a "strong, smart" dividend and buyback program, and looking at its accelerated growth rate here, Cramer now feels it could go to $114.
Johnson & Johnson
, on the other hand, despite Warren Buffett's buying of the stock, has been a "loser," he said. The stock is "flatlining," and Cramer believes that nothing can save it here. "It should remain where it is, $63."
is a stock that has already taken out Cramer's price target. He called the company's CEO Jamie Dimon "a great banker" but said Dimon hasn't been able to bring out the stock's true value because he's been "handicapped" by
Chairman Ben Bernanke.
Cramer said he expects three more points of upside at JPMorgan, and then he would declare victory.
, Cramer went on to say, is also "capped." He called it a "single-digit grower" and predicted that it would top out at $55.
, he said, is a Dow stock with "real momentum." However, this stock has also surpassed Cramer's original price target, and he feels its valuation is "stretched." It's probably done going up here, Cramer said.
Moving on with
, Cramer said he had been "so bullish on" Mr. Softee and thought it could trade at $35. But he was "clearly" wrong.
Cramer said that "$35 is a stretch," but not so much that he's changing his target. Cramer sees more underpromising and overdelivering (UPOD, in Cramer-speak) going on at Microsoft in the future.
A Tale of Two Internet Stocks
is on its way up because
is going higher, Cramer told viewers.
He believes that Google, on the conservative side, could see $600. Amazon going higher serves as a catalyst for Google because of one word, Cramer said: "contrast." Google has become the "cheapest" of all the Internet stocks Cramer follows, and by contrast, Amazon's ascent makes Google look cheap.
"We use metrics to value," and on those metrics, Amazon is way more expensive now than Google, even though Google has better growth and better prospects, Cramer explained. "The momentum may be back for Google -- and you have to anticipate it because of what happened to Amazon."
Amazon has a sales growth of 33% and an operating margin of 4.8%, he said. In comparison, Google has 63% sales growth and a 33% operating margin. "Google is the better, higher-growth company," Cramer said. "It's half as cheap as Amazon."
If Google were to get the same valuation as Amazon, Google would be trading at $704, he said. At the same time, Cramer advised against selling Amazon, because there are "way too many shorts that need to cover" the stock. "That said, the time is finally the right time to buy Google," Cramer said.
Sell Block: Lock Cramer Up
During his "Sell Block" segment, Cramer said he got "cocky" last week because lately he had nailed a few of his weekly game plans. And in last week's "hubris"-filled game plan, Cramer said he "broke the rules" because of this cockiness.
"Technology cannot be purchased before we get to August," he said. But because he was blinded with overconfidence, Cramer recommended
. Accounting irregularities aside, CA's fundamentals are not those of a stock worth owning, he said.
The silliness didn't stop there. After CA, Cramer recommended "one of the worst-performing stocks of the week,"
He said he liked ADI because
had one of the best quarters on the Street, and he thought ADI could follow.
The key word Cramer said he forgot about here was "competition." TXN is doing well, but it's at the expense of ADI. Plus, ADI was downgraded Wednesday because "opportunities in its core markets are shrinking," he said.
"Don't get arrogant, and you won't repeat Cramer's stupid mistakes in CA and ADI," he said, taking bites out of a couple of toy crows.
In his "Mad Mail" segment, Cramer told a viewer not to sell
and that he likes it.
Responding to another mailer, Cramer said he considers
National Oilwell Varco
still the "best in show."
During the "Sudden Death" round, Cramer was bearish on
Cramer was bullish on
Cramer was bearish on
For more of Cramer's insights during the Lightning Round, click here
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At the time of publication, Cramer was long NYSE Euronext.
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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