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Might as well spell out the speculative gems here. As I write in
Jim Cramer's Real Money: Sane Investing in an Insane World
, I think that speculation, for at least a portion of your "Mad Money" portfolio, not only can be done, it
But I think that it has to be done on a limited basis and with something that has a real shot at working out. I have been dancing around the names that I think have a chance, but it's time to spell them out now.
My three faves right now are
. Let me explain why these can work and work big here.
First, Qwest is turning around so fast that I think people don't even realize how strong the numbers are. The broadband revolution finally has hit the old-fashioned telcos with a vengeance. We saw the same thing with the
quarters, and Qwest is gaining share and growing again. I don't think anyone realizes how much cash these companies can throw off.
Meanwhile, while lots of people want to play the growth of the Internet through an
-- both very worthy choices -- I think the best way to play it is with Level 3. It's growing as fast as many of these companies when it comes to the Internet, at least, but it needs to fix its capital structure. It will, and the stock could double in 18 months when it does.
Finally, I like Arena Pharma because it has not one but two drugs in formulation, one for diabetes and one for obesity. It cut its revenue forecast this week and freaked everyone out. That's an opportunity. I don't like it because of its revenue, I like it for the approval of the drugs.
I think that these are among the best speculative plays out there and I thought that rather than just haphazardly mentioning them every other week on
radio, I should just spell them out here.
College students, listen up!
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At the time of publication, Cramer had no positions in any of the stocks mentioned.
Jim 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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