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"I'm sticking my neck out and calling the bottom," Jim Cramer told viewers of his "Mad Money" TV show on Wednesday.
With earnings coming in strong across the board, except in the financial sector, Cramer said the markets may finally be leaving the bears behind.
He said the negativity in the market is striking. He cited an investor intelligence survey, which indicated that only 30% of investors are bullish, while 50% are bullish on the markets. "It's always darkest just before the dawn," he said.
According to Cramer,
( MER) blueprint for jettisoning much of the company's bad debt is one positive sign that the markets may be turning upward. "We've been waiting for a blueprint, and that's exactly what they gave us," he said, noting that shares of the company rose 10.6% on the news.
Cramer also noted strength in such diverse companies as
( MOT) as further evidence that the market is beginning to turn.
Furthermore, Cramer said with oil prices falling from $148 to $121 a barrel will continue to bode well for the markets. He predicted oil could continue to fall as low at $110 a barrel before finally stabilizing. With other commodities, like gold, also following suit, Cramer said many industries could continue to provide the market with upside surprises.
Cramer: What Merrill and Lone Star Aren't Telling You
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Finally, Cramer called the Security and Exchange Commission's short-selling protection plan for the financial stocks "monumental," saying that the move will finally stabilize the financial sector. He also praised the Federal government's plan allowing banks to sell bad mortgages to the FHA for just 80 cents on the dollar.
"The next big dip in the market may be the last one," he said.
Ride the Blackberry Bold
Cramer proclaimed that August will be
Research In Motion
( RIMM) month, ahead of the launch of its newest product, the Blackberry Bold. "The iPhone isn't the only way to show off to your friends," joked Cramer, who called Research In Motion a steal at just $119 a share.
Cramer based his Blackberry thesis on a number of new product releases scheduled for the next few months. In addition to the Bold, Research in Motion is set to release the Kickstart, dubbed the
( MOT) killer, and the Thunder, which is said to be the first serious iPhone contender.
In addition to the new products, Cramer noted the company's further expansion into overseas markets. He was not concerned by Research In Motion's recent earnings guide-down, attributing the shortfall due to simply an increase in marketing and research and development costs for the many new products on the runway.
Cramer said he's also not concerned about
iPhone affecting the company's bottom line. "There plenty of room for both companies to grow," he said.
Finally, Cramer cited his past track record with RIMM as another reason to buy the stock. He said the company's shares have risen 117% since he last recommended the stock on June 6, 2007 at $53.04.
A Linux Treat
Cramer talked with Jim Whitehurst, president and CEO of
, a company which Cramer said he's never fully understood or appreciated.
Whitehurst said Red Hat has a special business model that no other competitors have. The company's large developer community provides it with great software at little cost, allowing Red Hat to have higher than average margins.
He further explained that Red Hat's Linux operating systems run in many large, mission critical applications where
just can't compete. He cited the
as one such large customer.
Whitehurst said that
is a partner of Red Hat and not a competitor, saying that the company recently endorsed Red Hat as its operating system of choice.
Cramer called Red Hat an inexpensive stock when compared to its growth rate and recommended looking into the company as an investment.
Am I Diversified?
Cramer talked with callers about their portfolios. The first caller's portfolio included
Cramer said all five companies are very well run and called this portfolio "perfect."
The second caller's top holdings included
Cramer called two of a kind with Vivo and Motorola. He recommended selling one of them in lieu of a defense contractor or large conglomerate.
Cramer was bullish on
Nordic American Tanker Shipping
He was bearish on
Double Hull Tankers
Red Robin Gourmet Burgers
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At the time of publication, Cramer was not long on any stock.
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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