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NEW YORK (
) -- "Don't fear a correction, pray for one," Jim Cramer announced to the viewers of his
TV show Wednesday, as he told investors that the stock market is done doing nothing, and they need to be in it.
Cramer said after 10 years of the markets moving sideways, he feels it's time to get bullish on stocks. He said investors need to stop worrying about 3% to 5% corrections and learn to love them, as they may be the only time to get into the markets at a great price.
Cramer cautioned that investors who sell at these levels might not be able to get back in as stocks surge ever higher.
Cramer said he's seeing signs of strength, whether it's
, a stock which he owns for his charitable trust,
Action Alerts PLUS, or
. Cramer said it's clear that the industrials are on fire.
Likewise with the banks, said Cramer. While the bears fret that
Bank of America
, another Action Alerts PLUS name, is up too much in the short term, Cramer reminded viewers that this $15 stock once traded over $50 a share before the 2008 crash.
Cramer was also bullish on
and Action Alerts PLUS favorite
Other bullish names included
, a company Cramer said could become the world's No. 1 auto maker.
"Don't let a correction scare you," Cramer concluded, "do some buying."
"Most losers stay losers," Cramer told viewers, as he examined the dogs of the
for 2010. Just because a stock has come down, said Cramer, doesn't make it cheap. While may big losers eventually snap back, bad companies are not worth owning at any price.
When Cramer last looked at the dogs of the S&P back in July, the results were incredibly positive. Cramer identified
, three stocks that are up 55%, 44% and 42% respectively.
But this year's dog are a different story, said Cramer. They include
With each of these stocks declining between 24% and 55% over the past year, Cramer said investors may be tempted to buy into these stocks.
But secular trends are working against each and every one, said Cramer, from Dean Foods, which is fighting overcapacity, to Diamond Offshore, which has the wrong type of drilling rigs, to Supervalu, which is struggling with its Albertson's acquisition.
Cramer said in the oil patch, stocks like
, or Action Alerts PLUS name
, would be better plays. Investors looking for housing exposure need to consider Bank of America, said Cramer.
Of all of the dogs he examined, Cramer said he wouldn't be a buyer of any of them.
A Second Look
Some dogs can be winners, said Cramer, as he uncovered three stocks that are worth a second look.
Coming in third was memory chip maker
, a stock that was down 24% last year.
Cramer said this company is rapidly moving from old school DRAM memory into the hot new flash memory that goes into tablets and other mobile devices. He said at eight times earnings, Micron is a speculative way to play the continued growth of
, an Action Alerts PLUS bellwether.
Coming in second, steel maker
, who saw its shares slide 23% in 2010. Cramer said AK Steel is a cyclical play, and with aluminum and steel being late in the recovery cycle, AK may be in the sweet spot for 2011. He also liked AK for the possibility of a takeover.
And the winner of Cramer's dogs of the
, a provider of natural gas that was down 22% in 2010.
Cramer said Southwestern got crushed by falling natural gas prices, but with prices now stabilizing, Southwestern should recover. While the stock was down for 2010, the company has delivered a 2,600% gain over the past decade. "Don't count this one out," said Cramer.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer called this portfolio "perfection."
The second caller's top holdings included
Cramer said "wow," calling the portfolio "beautiful."
The third caller had
Enterprise Products Partners
SPDR Gold Shares
as their top five stocks.
Cramer said he'd bless this portfolio since Devon finds oil and gas and Enterprise moves oil and gas.
In the Lightning Round, Cramer was bullish on
He was bearish on
In his "No Huddle Offense" segment, Cramer opined on investigation of
investment in Facebook.
He said in just 72 hours, Goldman has gone from accusations to praise for its handling of the deal. This is not by accident. Goldman has a history of reinventing themselves and pioneering new financial products.
Cramer said Goldman doesn't deserve to trade at the discount it currently receives. He feels the company could earn $20 a share in 2011 and deserves a 12 times multiple, for a price target of $240 a share by the end of 2011.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Caterpillar, Bank of America, Weatherford, Apple.
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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