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Jim Cramer opened Friday's "Mad Money" show with comments about the $253 million verdict against
in the first of thousands of lawsuits pending against the drugmaker over its once-popular painkiller, Vioxx. "We don't know the downside with Merck. Why can't anyone ever say that?"
"We are litigation nuts in this country, and the drug companies are more hated than anyone," Cramer said. "To think that any lawyer, corporate executive or analyst can possibly tell you how low Merck can go is ridiculous."
"But, I believe that for the near term, you can expect
Merck's stock to visit its 52-week low."
reported a "sweet and delicious" quarter Thursday, said Cramer. "I hope you own it, because I think the stock is going up."
But Cramer admonished that if you own the stock and can't explain what the company does and why it's going higher, you should "sell every last share."
Cramer explained Marvell makes chips that go into consumer electronic products and that it's these products that are driving the tech rally.
"It's not a huge part of Marvell's business, yet. But, it's going to get a whole lot bigger."
Marvell makes chips that go into
portable PlayStation, Sony's new PlayStation 3,
new Xbox, and also VoIP products, printers, PDAs, cellular phones and "cutting edge" wireless networking.
"It looks a lot like
, and that stock hasn't been disappointing lately. We like
Marvell because they've got a solid chip business with good growth in the high-capacity storage market and in the networking market. And, they aren't just levered to the Cramer tech rally. They're the reason the tech rally could ever happen. All these tech products you can go and buy at Best Buy have some Marvell in them."
A caller asked how Marvell was different from
. Cramer said that even though Marvell trades at a higher multiple than those two, it has proprietary products. So, it is simply worth more.
Meanwhile, video-game retailer
reported disappointing results Thursday and cut guidance. But the stock closed up anyway and was one of Thursday's biggest percentage gainers. The stock was up again Friday.
The reason the stock was up both days, Cramer said, is that GameStop is acquiring
( ELBO), "which will then turn
GameStop into a
." With GameStop buying ELBO, it is "the
-best way to play the coming video-game product cycle."
A caller asked if there were any other stocks, which despite bad earnings reports, Cramer still liked. Cramer said he likes retailers, such as
, that "are going to be really buyable come September."
Cramer said a "specter is haunting retail" and that specter is
, which reported disappointing earnings this week. That's the only reason he can think of as to why Home Depot and Lowe's are being held back. Specifically, Wal-Mart blamed its problems on oil. But Cramer doesn't believe that excuse because Home Depot and Lowe's reported strong quarters.
"Wal-Mart's excuses are off the mark," Cramer said. "But Wall Street seems to believe them over Lowe's and Home Depot. That's the wrong takeaway."
Lowe's and Home Depot are doing fine because they are more enjoyable places to shop.
"Buy Lowe's and Home
Depot before everyone else realizes gas prices aren't keeping anyone down." But in response to a caller's question, Cramer said he would pick Lowe's over Home "Despot" because it has better growth.
Annaly Mortgage Management's
CEO, Michael Farrell, was a guest on the show. The stock has fallen to $15 from $18 since Cramer recommended it, and Cramer wanted to know if there is "any chance the pain will subside as long as the
"What's going on in the mortgage REIT
real estate investment trust arena is a very predictable position that's happening in the yield curve," said Farrell. "The flattening of the yield curve is going to affect all financials."
What can Farrell do, asked Cramer, to create value in the interim?
Farrell said his company is growing its asset base, increasing its fee income and increasing its assets under management.
Cramer said Annaly is in a tough spot but to sell the stock now is wrong. However, he's been wrong on it so far, and, said Cramer, "You have every right to chop my head off about this one."
Cramer was bullish on
Allscripts Healthcare Solutions
Cramer was bearish on
Pepsi Bottling Group
Building Materials Holding
Protein Design Labs
At the time of publication, Cramer was long GameStop, Intel, Microsoft, Motorola UnitedHealth and Yahoo!.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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