James Cramer Talks Stocks

The trader discusses highflying stocks that will go even higher in a chat on AOL.
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James J. Cramer chatted on AOL Tuesday, Dec. 7 at 5 p.m. EST. As with all chats, this transcript is unedited.

PF Trader:

Welcome everyone to another edition of TheStreet.com live with JimCramer. Wild day! Let's chat stocks.

PF Trader:

Welcome Jim

TSCNYjjc:

Hello everybody lets get right into it!!

PF Trader:

So ........ let me just start with Yahoo!!!!! WOW.

TSCNYjjc:

This was a one in a million trade as I said a couple of times on the site. But I sold most all of it. I think this stock heads down here and I am waiting to buy more.

Question:

JJC - do you think stocks such as JDSU, EXDS, BEAS, ARBA, etc., have run too far for a position/short-term trade, or is there still some upside to these?

TSCNYjjc:

I think that these are all excellent stocks, and I am long all but exodus (took profits today on that last one) but I think these stocks are so volatile that you will get another chance to get long if you want to.

Question:

Do you think the net stocks are going to cool off or keep going up?

TSCNYjjc:

No, I think the Net stocks will remain hot, I think that there are many worth owning, I bought more AOL today.

Question:

Are we in a new paradyme where tech demand is voracious by fund managers trying to beat the S&P, or will there be a return to the mean/medium, and a big selloff in Feb?

TSCNYjjc:

Yes, absolutely I think that people have to own tech and they don't own enough of it and they own too many of the drugs and the financials and the oils.

Question:

Why is AOL stalled here when Yhoo is ramping-- what are the worries for Aol when T looks like they will open the cable, which was the biggest worry?

TSCNYjjc:

I think that is unfair. I think that Yahoo benefited from the inclusion in the S&P and AOL being "stalled" is kind of a joke frankly. This has been a great great stock to own and I remain long.

Question:

Jim: What if MSFT doesn't settle? How would the stock price be affected long term?

TSCNYjjc:

I think MSFT settles and settles shortly. I bought more of this today as it was one for several stocks that sold off as indexers raised cash to take in yahoo.

Question:

JJC: How about giving us your favorite ONE B2B candidate?

TSCNYjjc:

I think all you have to do is check the site--I gave you a bunch today, and I am on our boards constantly, talking about which ones seem interesting to me, and I always disclose my positions. Why not go there?

Question:

When do you see the market taking a big correction turn downward?

TSCNYjjc:

I don't see one occurring until interest rates spike up and I don't see that happening. In fact I think rates are benign here.

Question:

Your opinion on upcoming IPO, LNUX please?

TSCNYjjc:

That is supposed to be a very good deal and I would try to get some.

PF Trader:

OK So Red Hat hooks up with Dell and the stock's up 52 points or 22% to 284 can it sustain?

TSCNYjjc:

I missed this Red Hat. I could really kick myself. I feel I lost any ability to comment on it because I was negative on it. There are other people much better inclined to discuss this one than me including our own Jim Seymour who has been outstanding on this.

PF Trader:

I missed it too! Maybe we can kick each other for this one :)

Question:

How do you think Qualcomm will perform next year?

TSCNYjjc:

This is another one which I sold 30 points ago and I want to get back in. But I did sell it for Nokia which has been no slouch.

Question:

Jim, You were buying Intel a couple of months ago at 89. It's now down to 77 or so. Are you still buying? What are your thoughts on INTC?

TSCNYjjc:

I think Intel is going to be a great stock next year. It has had a good run and then pulled in on manufacturing snafus. I have to tell you that I think that Intel inside is going to extend to all communications equipment not just p.c.s so there will be many more years of growth.

PF Trader:

What about AMD's new Athlon chip - any effect on INTC?

TSCNYjjc:

I don't like AMD. I have been vocal about it. I know it has had a run but I also know that it has done nothing over the years versus Intel and I don't think chip will change that equation. Right now it is benefiting from the Intel snafus; they will be solved.

Question:

Any opinion why VERT has not really seen a breakout over the past 3 weeks?

TSCNYjjc:

Oh gee, come on, this stock is a rocket. I think that we are getting spoiled :) I am long this one and think it is terrific. They can't go up 30 points a week you know.

Question:

What is your take with regard to online brokers, especially given the trading volume over the last month plus? Am especially interested in your projections on Ameritrade.

TSCNYjjc:

I am still very long EGRP. I guess I could be long any one of them but I think that EGRP has really lagged and I like their business model.

Question:

Comments on ASKJ. Is this just an overpriced dictionary?

TSCNYjjc:

Ph man, I was just talking to Matt "Jeeves" Jacobs about this one and he thinks the lock-up expiration is weighing on it. Also it is just a search engine, no more than that!!

Question:

Where do we see the next downdraft coming from-- interest rates, oil, or what? Also, when do you start taking money off the table?

TSCNYjjc:

I don't like to look at the world like that. I don't look at my shadow and get spooked. I look at individual stocks and I hope the macro environment causes dislocation that lets me buy my faves cheaper.

Question:

Hi, how do you think of Jacob Internet fund? Thanks.

TSCNYjjc:

I don't know which is why I am looking forward to grilling him on our show soon. We are having him on our weekend show, which if you are not watching is red hot. We had Blodget last week and the guy kept pushing Yahoo! Caught a hundred point move IN TWO DAYS!!

Question:

Jim. I am huge fan and miss you on CNBC. What are your thoughts on BRCM? My initial investment was in the 60s. Thanx.

TSCNYjjc:

Oh boy, I swapped out of Broadcom today because I have a big position in CNXT, which is less promotional but just as good.!!

Question:

Do you think NOK can double in the next year given its 200 billion market cap?

TSCNYjjc:

Oh man, I guess the answer would be, yes, if they execute their browser strategy, which would make them the primo hand held computer.

Question:

Hi, Cramer....would you buy Cisco today?

TSCNYjjc:

YES.

Question:

Opinion on ATHM.

TSCNYjjc:

No thanks to this one. It is all over the map. I like AOL and Yahoo and then Lycos if I had to rank them.

Question:

I bough Pfizer at 39 ... should I bite the bullet and take a lose or should I wait it out?

TSCNYjjc:

I think that you should bite the bullet. Frankly these stocks are over owned and I don't think you should be in them.

Question:

Will PFE win the battle for Lipitor?

TSCNYjjc:

They have the firepower to do so.

Question:

Would you be a buyer of egrp, amtd here and what type of price projections do you have for each?

TSCNYjjc:

I don't do much price projecting as you know from the site, as I am really just saying that this is a well run company that is facing an acquisition that has kept its stock in the doghouse. That too shall pass.

Question:

How long will INTC hang between 65-80?

TSCNYjjc:

15 days, 14 hours and 29 minutes. Oh come on!! This is a great company and a great stock.

Question:

What will aol, yahoo, and other internet big shots be doing in 2 years from today?

TSCNYjjc:

If they execute they will go higher, these are great companies with great business models and if they do a good job they will go higher.

Question:

Would you be buying SUNW after the split?

TSCNYjjc:

I bought more sunw today as I said on the site this morning and I don't need to buy any more because I already own it!!

Question:

Jim, What gives with the package transfer companies? My Atlas air (CGO) and FDX are drifting...mostly lower!

TSCNYjjc:

They are leveraged to oil which is still too high. I own UPS and I own it for the long term. These companies should do well when oil goes down.

Question:

Hi Jim. What do you think of the weakness in EBAY today? Also, I think that people should have to use their names on the TSC boards.

TSCNYjjc:

Two questions there: first we scrambled the jets all day looking for reasons why EBAY was down and couldn't find any. I wish I had bought it. As far as anonymous posts go, weigh in on our boards please. As I said today I don't know myself, but I want more people involved. Our boards are winners, they really helped me today in Ariba--which I am long.

Question:

Based on today's news story regarding VISX, do you think that the market reaction was way oversold?

TSCNYjjc:

I think this stock must have been in all the wrong hands. I wanted to buy some but I didn't know enough and I use Gary B Smith's rules here, I say, don't buy the first break. Gary has made me a fortune with this; he is really the best. My wife says he may be better than she was at TA!

Question:

Jim, will Exds continue higher next year?

TSCNYjjc:

I wish I hadn't sold this today. You know I sold it because I am trying not to be too greedy between here and yearend. That sure has hurt me more than helped me though!!

Question:

Will yahoo hit 400 or 500 in next 90-days.....Do you see a split soon and what kind of split?

TSCNYjjc:

I think that historically they have split it up here but you have to understand this was a very very artificial move, as I said all day today--this was not REAL buying., it is at 339 right now!!

Comment:

Jim, from Philadelphia, I've profited big from your insights. Thanks. Thoughts on ADBE, has sold off big on volume, trendline broken.

TSCNYjjc:

That Iggles game broke my heart on Sunday. My girls couldn't believe how depressed I was. I wanted to kill my daughter's snake! ADBE seems to really be getting it right these days and I wish I owned some.

Question:

Opinion on KO & T.

TSCNYjjc:

KO is a sore point. I bought some yesterday and today but I am knocked out by it (that is a joke on the symbol). ATT is pretty good but just had too big a move, and I await a pullback.

Comment:

How do you feel about AKAM. jpm just picked up coverage and recommended a "buy" w/ a 270 target in 12 months. This market reminds me of the eagles. Just close your eyes and bet em. Even though it doesn't necessarily feel right, it usually comes up a winner.

TSCNYjjc:

Please the eagles are the worst team in the league save Cleveland!! This market is great!! I am long Akamai and I thought the report was an excellent one. I like the analyst very much.

Question:

Your opinion on CNXT, positive news out today.

TSCNYjjc:

I am long CNXT, this is a rival to broadcom that doesn't get the story out well enough. I do like them very much. There is an active discussion of this Red Hot on our boards that I welcome you to.

Comment:

Jim do you like PCLN. It has lagged other nets.

TSCNYjjc:

PCLN has lagged and I am not sure why and I am not crazy about it. I would buy more Intel but I don't want any p.c. exposure right now.

Question:

What do you think of Martin Weiss who is predicting a huge correction.

TSCNYjjc:

Who the heck is martin weiss? I guess that about answers that one!

Question:

Will E*Trade ever rebound and what's holding it down??!!!

TSCNYjjc:

There is a very negative arbitrage going on in etrade. It is buying telebanc. To close that purchase as is there are fears that Softbank has to sell its EGRP. That would hurt the stock. I think all of that nonsense is IN the stock in the 20s, so I bought it and I remain long it.

Question:

Is INKT still a good buy???

TSCNYjjc:

Yes, I think it is. They are doing very well. I am long INKT.

Question:

What about JNPR?

TSCNYjjc:

When it was up 20, I, like a moron, sold it. How could it go up another 20 without me!! I want my Juniper!! This company is smoking!!

Question:

What is your outlook on the canle modem business?

TSCNYjjc:

I am not into it that much frankly. I like Portal Software as a way to play the whole DSLAM Cable modem biz and I am long MOT and CNXT which is another way to play it.

Question:

You mentioned on the show that you were looking to get back in to Intel, what is your reasoning?

TSCNYjjc:

I am long it, I don't have to get back into it. But I like the communications chip strategy because it is not contingent on Personal computers.

Question:

Data is flowing increasingly through Linux based servers--comments Jim...

TSCNYjjc:

Read Jim Seymour last night. I defer to him. He knows more than me about this. He is the man on this stuff and we are lucky, very very lucky to have him.

Question:

Do you believe Y2k fears will bring the market down, toward end of year?

TSCNYjjc:

Oh man, is that ever boring. At this point I would even fly an airplane that night -- in china -- that is how confident I am nothing will happen.

Question:

Should I hold on to stocks like GNET and other internet stocks? What are some stocks you see on the rise?

TSCNYjjc:

Those guys are great operators. You know who told me about that one? Bill Fleckenstine. He told me it was well run.

Question:

What is your opinion of the bio-tech stocks?

TSCNYjjc:

The only one I am long right now is corr but I wish I were long millennium phrama.

Question:

Can (INTU) maintain the momentum of the past 6 weeks?

TSCNYjjc:

Yes

Question:

Do you have a post Y2K list?

TSCNYjjc:

Yes, it is the same as the pre list!!

Question:

Your opinion on Cisco and Lucent and Worldcom.

TSCNYjjc:

I am long all three but I like csco best of the three and I think it is the strongest.

Question:

Who's the next one to get entry to the S&P among the internets ???

TSCNYjjc:

Oh man, I have lost more money than I have made speculating on that-- until Yahoo of course! The likely one will certainly be found in the Red Hots!!!

Question:

What do you think about the CD settlement today. Would you buy?

TSCNYjjc:

I have a blind spot toward that company but this was encouraging and I would not blame people for buying it.

Question:

Why is AMZN stalled here???

TSCNYjjc:

Because there are many competitors nipping at it. But it does a great job. I have to admit that I am totally torn on this one and don't own it but find myself drawn to it like moth to a flame!!

Question:

James, your top picks for the next 6 months please?

TSCNYjjc:

I think that you will have to go with csco, sunw, yhoo, aol and Nokia as that is the allstar team for now.

PF Trader:

Once again Jim, our thanks you for discussing stocks, good night.

TSCNYjjc:

Thanks David, thanks Laura, and thanks all of you watchers. I am going to do a couple more pieces tonight cause I am pumped!!