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"For everyone who missed out on the 400-point rally yesterday and today, I have one thing to say: It's not too late, you've barely missed a thing," Jim Cramer said on his "Mad Money" TV show Wednesday.
The 50-basis-point rate cut is a reason to get in the game and stay in it, he said. As proof that it's not too late for people to get into the market, Cramer pointed out similar moments in history.
realized the extent of the problems in 1990, for example, it was a great time to get in
the market, he said. "Since then, the
is up 10,000 points."
In addition, looking back at 1998, when the Fed blinked, the
rallied 110% straight off of that, Cramer said.
A lot of people are trying to talk this market down because they either were sitting on the sidelines, or were shorting, or thought the market was going to go down, he said. But now is not the time to get scared out of the market. People should not pay attention to these "Negative Nancies," Cramer said.
Don't listen to the theoretical issues people are going to talk about to try to get others out of the market, he advised. "We don't care about theory, we care about practice: the practice of making money." It's not that the theories are wrong, Cramer said, but they are irrelevant.
"The rate cut is great for stocks, so many stocks," he said. It's been great for
, as well as the banks, Cramer said.
People should consider buying
, he said.
Moreover, maybe the cut can and maybe it can't save the homebuilders. Cramer said that while he still wouldn't touch the
, he also wouldn't short them anymore.
, Cramer told viewers, is a company with a good dividend that has "totally reinvented itself as a growth business."
It "boldly" took on the iPhone deal without even seeing the demo version and has made some "gutsy acquisitions," he said. But while AT&T is willing to invest in growth, it won't just purchase anything, Cramer said. It's doing it the right way by building its triple play with telco companies.
Calling AT&T a "sexy and cheap" company, Cramer welcomed CFO Rick Lindner to the show and asked him how he views the telecommunications business.
The telco industry, Lindner responded, is making a resurgence. He said he believes AT&T has the best assets in the business and he is seeing great performance across all the company's segments. Sales of the
iPhone, said Lindner, have been great, and have not only brought the wireless company new customers, but it has also increased store traffic for AT&T.
Wireless data revenue is growing significantly, and Lindner said he's seen nice margin expansion in the wireless segment. Further, there's been good demand for broadband, and the company's video division is taking off as well, he added.
Lindner said that since Apple has cut the iPhone's price by $200, he has seen a dramatic increase in demand as customers continually come in from other networks.
From a financial standpoint, Lindner said AT&T has a strong balance sheet and no credit concerns. So the choppiness of the market and interest rate environment has not been much of a factor in financing the business, he said.
Cramer remained bullish on AT&T, and told viewers that if they're looking for one stock to buy for their children, AT&T should be it.
In the "Mad Mail" segment, a writer commented on
recent acquisition of wireless solutions company Cognio and asked if all WiFi companies are headed down the bandwidth road to the extent that
Level 3 Communications
will soon experience explosive revenue and profit growth.
"I hope so," Cramer responded. But remember, LVLT is stalled here.
Am I Diversified?
In his "Am I Diversified?" round, Cramer's first caller asked if he was diversified with the following five stocks: Apple,
Research In Motion
Cramer pointed out two pairs with Apple and RIMM, and Noble and Schlumberger. He advised the caller to make some changes.
Throw out Noble and Apple and add a defense play like
and a financial like Wachovia, he suggested.
Separately, Cramer said he prefers
His second caller named these five picks:
L-1 Identity Solutions
Cramer told the caller she had too much of a gambling portfolio with too many speculative stocks like ID, FTEK and UXG. He suggested getting out of those and into less speculative names.
Cramer was bullish on
RRSat Global Communications Network
Superior Offshore International
, Northrop Grumman,
Cramer was bearish on
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At the time of publication, Cramer was long Transocean and XTO Energy.
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