Search Jim Cramer's Mad Money trading recommendations using ourexclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game videoexclusively on TheStreet.com.
NEW YORK (
) -- "Those who do not know their history are doomed to miss the move," Jim Cramer announced to the viewers of his "Mad Money" TV show Wednesday, as he boldly predicted a double for semiconductor giant
, a stock which he owns for his charitable trust,
Action Alerts PLUS.
Cramer said Intel is amidst the most impressive product cycle he's ever seen, and he sees no reason why the stock shouldn't double right here. But only through the lens of history does such a move make sense, he said, and unfortunately, many Wall Street analysts simply weren't around in the 1980s and 1990s to truly know the company that is Intel.
Cramer explained that in 1982, when Intel introduced its then revolutionary 286 chip, the stock doubled. When it introduced the 386 chip is 1985, the stock doubled. When the 486 rolled off the assembly line in 1989, there was another double, and again in 1993 with the introduction of the Pentium. Likewise with the advent of the Internet, a double, followed shortly thereafter by another.
However since the dot-com boom of 2000, Intel's stock has wallowed, with no real new products to drive it higher. But not anymore, said Cramer. He said Intel's not only benefiting from a new product cycle, but also from one that includes consumers as well as businesses and plays domestically and internationally.
Cramer said all of the techs can be bought on Intel's strong news, including stocks like
, and of course
, another Action Alerts Plus name.
Cramer said unlike the doubles of the past, investors have a rare opportunity to get in at a good price, at just 12 times earnings. An 18 multiple would be more like it, said Cramer, as Intel no longer just makes chips for PCs, but a whole host of new products.
On Solid Ground
In the "Executive Decision" segment, Cramer spoke with Peter Georgiopoulos, chairman of
, a dry bulk shipper that Cramer panned a few weeks ago and told investors to steer clear of.
Georgiopolis defended his company by saying that Baltic Freight is not an unknown entity, its parent,
, has a long track record of returning capital and doing right by its shareholders.
Georgiopolis also defended the fact that Baltic had no ships when it launched an IPO last month. He said the move was simply a timing issue, and the company could not take possession of its ships without proceeds from the IPO. He said that all of Baltic's ships are being bought from third parties and are not simply moving from Genco to its subsidiary.
When asked about the IPO itself, Georgiopolis noted that the IPO was not marked up, and represented the cost of the ships it was purchasing. He said that with Baltic's share price now below the IPO price, investors can buy shares for less that the net asset value of the company.
Finally, Georgiopolis defended Genco's stake in the business as its biggest shareholder by saying that investors should want a big shareholder with a track record of making money.
After hearing Georgiopolis' arguments, he said that Baltic is probably OK to buy, given its shares have fallen below its IPO price.
On the heels of a strong quarter from
, Cramer said investors need to plant a little money into
, the market leader in lawn and garden products.
Cramer said Scotts is the king of do-it-yourself lawn and garden care, with great brands including Miracle-Gro, Ortho and Round-Up. The company receives 70% of its sales from the big retailers, including
But unlike traditional vendors, Scotts has regional offices throughout the country and tailors its products for local markets, making them far more effective.
Cramer said the shares of Scott have risen 43% since he last recommended it on May 1, 2009. The company has sold its underperforming divisions, like its Smith & Hawken line of outdoor furniture, and is focusing on its core businesses. Cramer said this $47 stock could hit $55.
Am I Diversified?
Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included
Johnson & Johnson
Cramer said that this portfolio was "hitting it out of the park."
The second caller's top holdings included
Bank of America
Cramer said that Baytex and BP were too similar and one had company had to go.
The third caller had
as their top five stocks.
Cramer said that UPS and Union Pacific were both transports, and Union Pacific has to go after it reports earnings.
Cramer was bullish on
Advanced Micro Devices
Carrizo Oil & Gas
He was bearish on
-- Written by Scott Rutt in Washington D.C.
To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC
Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by
For more of Cramer's insights during the Lightning Round, clickhere
At the time of publication, Cramer was long Intel, Apple, BP, Bank of America, UPS.
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."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast