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NEW YORK (
) -- "There are only 35 trading days left in the year," Jim Cramer told the viewers of his "Mad Money" TV show Monday, "and there are no data points left to derail the bulls."
Cramer said investors need to consider where we are on the calendar. The markets have just entered a data void until the end of the year, he said. The companies have all spoken, most with upside surprises. The
has spoken, saying it's not raising rates anytime soon. The hedge funds are done liquidating until the end of the year. There is no major economic data coming out. What does it all mean? Cramer said it means there is nothing for the bears to latch onto, and nothing to stop the bulls.
With the bears out of the way, Cramer said it's time to circle back to the leaders that have been stalled, and back to anyone who exports goods and can take advantage of the weak dollar.
Cramer gave the nod to
, saying that the earnings estimates for these two tech giants are too low. He gave the companies a $300 and $700 price targets respectively.
Cramer said he's also interested in the financials again, mainly
Bank Of America
, all three of which he owns for his charitable trust,
Action Alerts PLUS.
Cramer said Goldman will be headed back to its highs and he sees 15 points of upside in that stock. He said both Bank of America and Wells Fargo have been held down on fears of pending secondary offerings. He said the CEOs of these firms should just carry through with their the secondaries and use the funds to pay back their TARP money, and send their stocks to 52-week highs.
There's a crisis of credibility on Wall Street, Cramer said, and that's good news for the financial audit firm of
Duff & Phelps
He said with increased government intervention into the private sector and no one having a clue have financial instruments are really worth, Duff & Phelps is the perfect "stock for the moment."
Cramer said Duff's specialty is valuation and advisory services, which hedge funds, mutual funds and companies use when they're buying or selling complex assets or businesses.
He said in a typical transaction, a seller might use "mark-to-model" accounting, and value their assets too high, while the buyer would likely use "mark-to-market" accounts, which often values assets too low. Duff & Phelps would act as the referee, and provide both parties with a fair valuation.
Cramer said with the pickup in mergers and acquisitions, and on the flip side, a pickup in bankruptcies and spin offs, Duff's services are in demand. The stellar company is used by 12 out of the top 25 largest global hedge funds and 13 of the top 25 largest private equity funds, he said.
Duff is currently growing earnings at 20% a year, yet trades at just 15 times its earnings. That's too low said Cramer, who is willing to pay twice the growth rate for a stock. He said the stock was stalled ahead of a planned secondary offering, but with that overhang now lifted, Duff & Phelps should be ready to ride the wave of distrust on Wall Street.
Priced Too High
In the "Know Your IPO" segment, Cramer told viewers that it doesn't matter how great a company's IPO is, if it's priced too high. He said this appears to be the case with Dollar General, the country's largest dollar store chain, which is set to come public this week under the ticker "DG" between $21 and $23 a share.
Cramer said the Dollar General IPO is being underwritten by Goldman Sachs, a firm which hurt investors with the overpriced IPO of
last month. Dole came public at $12.50 a share, only to immediately trade lower. The stock is currently trading at only $11.96 a share.
Cramer said there's no question that Dollar General is the best dollar-store operator out there, but the IPO deal is making him nervous. First, he said that insiders are cashing out with nearly one third of the offering. Second, the company will still have a mountain of debt, $3.7 billion worth that it must still contend with. Lastly, he said the company will still be controlled by the company's current investors, which leaves little recourse for shareholders.
According to Cramer, Dollar General should price at a premium that should not exceed $19 a share. At $21 to $23 a share, Cramer said this deal just lines the pockets of the insiders and the bankers, and investors need to stay away.
Cramer followed up on some recent "Lightning Round" stocks that stumped him. He said that
American Capital Agency
is too risky if the Federal Reserve begins raising rates and he'd steer clear.
Cramer said that
( FUQI), a Chinese jewelry maker, may be an interesting way to play the rise of the middle class in China. He also said that
, a cancer diagnostics maker, is a very speculative way to play the fight against cancer.
Cramer told a final viewer that Warren Buffet is a great man, and he'd be a buyer of
( BRK-B), especially given the coming 50:1 stock split, which will make shares more accessible to smaller investors.
Cramer was bullish on
( ALTH) and
He was bearish on
Regeneron Pharmaceuticals Inc
Beckman Coulter Inc
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At the time of publication, Cramer was long Goldman Sachs, Bank of America and Wells Fargo.
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