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The average video-game player last year was 33 years old, and gamers under 18 made up less than a third of all players, Jim Cramer said on his "Mad Money" show Thursday. That means the video-game market is much bigger than people think, he said.
Cramer said Mark Penn's book,
Microtrends: The Small Forces Behind Tomorrow's Big Changes
, has "a gold mine of ideas" that can be used for investment purposes.
Cramer noted Penn's chapter on "video game grown-ups" and said the way to play that trend is to invest in
Video-game makers are holding back the release of certain games until next year even though the holiday season is usually the time to release these games because manufacturers don't want them to get lost in the mix, he said.
This older demographic also means that gamers are willing to pay more for games, which is good for GameStop, he said. While he believes the game makers themselves are "too inconsistent" to buy as a stock, a retailer of video games like GameStop is a pure play on this trend.
Moreover, while GameStop is not an international play yet, it's poised to grow, he said. Beyond that, Cramer said he likes its used-game business, where margins are up 50%.
Usually the way to trade GameStop is by buying it in the summer, but with it currently at $56.61, the stock has pulled back enough to make it a "BuyBuyBuy" right now. GameStop has more than doubled in the past year, but people haven't missed the opportunity in this one yet, Cramer said.
Psychiatric Solutions for Portfolio
In a market as nutty as this one, people should invest in stocks with growth stories, Cramer said.
, the largest provider of psychiatric services, has everything market players need to feel secure about this market, he said.
It has absolutely no relation to anything subprime. "It is just a solid, consistent medical services provider," Cramer said. Plus, its business has secular growth, which means it is immune from the economy.
One in five people have a mental illness, he continued. This means there is a large number of people that might, at some time or other, want to take advantage of Psychiatric Solutions' services.
In addition, as Congress is trying to increase coverage for mental health, Psychiatric Solutions is a great stock to own going into the election season, Cramer said. It is also in an industry that is "ripe for consolidation."
This up-and-down market is enough to drive anyone crazy, but that doesn't mean people should stop looking for ways to make money, said Cramer, noting Psychiatric Solutions is "a serious bargain."
Intuitive Surgical Shows Strength
CEO Lonnie Smith of
joined Cramer on his show; Smith said his company's strong first quarter was a continuation of what it's been doing in the past.
When Cramer asked if its surgical systems are a harder or easier sell overseas, Smith said it depends on the country. The structure of the health care system and the amount of flexibility the country gives the patient to choose his or her own preference of a procedure all factor in, he said. But universally, it is true that patients prefer the least-invasive procedure, Smith added.
On Intuitive's sale of its stake in
, Smith said it happened because the company decided it would not hold minor positions over the long term.
"This stock is for real and this company is for real," Cramer said. "We're sticking with it, it goes much higher."
During the "Sudden Death" round, Cramer was bullish on
( LIFC) and
He was bearish on
Delta Air Lines
In his "Sell Block" segment, Cramer told viewers that
blew up in his face today. He recommended buying it last Tuesday, but he said it is "one of the worst calls" he's made all year.
Although it reported better-than-expected earnings, it guided down "rather low," Cramer said. On top of that, Align announced its CFO is leaving, and the stock dropped nine points.
"Its growth story is in jeopardy," he said. "This is a big mea culpa" and there is no reason to hang on to it here.
Moving on, Hansen Medical has gone up and it's time to walk away from it now, Cramer advised. "Sell all of it."
Research In Motion
( RIMM) are both up more than 50% since he recommended them, "sell half of your positions" in them, he said.
There's been some selling action in
; however, Cramer said he still thinks it's a triple buy.
To clear things up, he welcomed Bob Hugin, Celgene's president and COO, to the show and asked about the company's Revlimid rollout in Europe.
Hugin said he believes sales were "pretty solid and strong," but people expected more. However, Europe is not like the U.S., he explained. "You roll out in one country at a time" and so far the only major European country it's rolled out in is Germany. The prospects in Europe, he said, "are strong."
Further, the actual revenue didn't reflect the full underlying demand for Revlimid, even in the U.S., he continued. "Things are looking very promising."
Hugin has been "bankable" and remains so, Cramer said.
Cramer was bullish on
Thermo Fisher Scientific
Cramer was bearish on
Vasco Data Security
Odyssey Marine Exploration
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At the time of publication, Cramer was long Goldman Sachs.
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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