RealMoney Radio Recap: Best Buy Beaming
There are three things about
Best Buy
(BBY) - Get Best Buy Co. Inc. Report
that make it a best-of-breed company, Jim Cramer said on his
"RealMoney" radio show Thursday.
The company is growing like wildfire, it just increased its dividend and the company has been buying back stock. Obviously, Best Buy sees many good things coming down the pipe, Cramer said, adding that he believes it will return to $59 through the end of summer. (The stock was trading recently at $53.21).
Cramer advised a caller to swap out of
L-3 Communications
(LLL) - Get JX Luxventure Limited Report
and into
URS
(URS)
, which he owns for his charitable trust,
Action Alerts PLUS.
As for
Goldman Sachs
TheStreet Recommends
(GS) - Get Goldman Sachs Group Inc. (The) Report
, Cramer said it is a "remarkable conundrum."
The company is growing at 16% and trades at eight times earnings, he said, yet people still don't trust it because they feel it makes money in a way that isn't sustainable. But Cramer believes Goldman Sachs' earnings are even more sustainable than
Bear Stearns
(BSC)
.
He told the caller he wouldn't be dissuaded and recommended buying Goldman, especially because it is currently cheaper than Cramer said he's ever seen it.
People are dropping out of
eBay
, Cramer said.
Not only has it paid too much for Skype, but Cramer sees the company having major problems going forward. eBay does not have a good risk reward and is a sale, he said.
Cramer blessed
Qualcomm
,
(QCOM) - Get QUALCOMM Incorporated Report
, which he owns for his charitable trust,
Action Alerts PLUS and recommended buying it.
Allegheny Technologies
(ATI) - Get Allegheny Technologies Incorporated Report
is no longer a great stock, but it manufactures steel for aircraft, which is a great sector, he said. However, Cramer believes the stock should only be bought during severe weakness, i.e., when the stock is extremely low, therefore he said he would hold off on buying it for now.
Cramer was impressed with
Bed Bath & Beyond's
(BBBY) - Get Bed Bath & Beyond Inc. Report
quarter, he told a caller.
The stock is flat year over year and has a 16% growth rate. Cramer said it's a buy even though the company said it planned to cut back on its growth.
When a caller asked about
Oracle
(ORCL) - Get Oracle Corporation Report
Cramer said he is not a fan of the company.
Even though the stock may look cheap to people, he doesn't believes it is. Although Oracle finally delivered on its promises, it is basically inconsistent, Cramer said, advising the caller to get into
Citrix
(CTXS) - Get Citrix Systems Inc. Report
, which he owns for his charitable trust,
Action Alerts PLUS, instead.
Citrix has a more solid growth rate than Oracle and he said he sees a bright future for Citrix multiple years.
Cramer called
Amazon.com
(AMZN) - Get Amazon.com Inc. Report
perennially overvalued and said it is no longer a special company, bur just a retailer.
Cramer instead recommended buying
Barnes & Noble
(BKS) - Get Barnes & Noble, Inc. Report
.
Trading Places
As long as we have a higher inflation backdrop, the market will be a good place to trade, but not to invest, Cramer said.
We are currently in a good trading environment, he said, recommending
Alcoa
(AA) - Get Alcoa Corporation Report
and
Alcan
(AL) - Get Air Lease Corporation Class A Report
, which he owns for his charitable trust,
Action Alerts PLUS, as his best trades.
The market won't see a good investing environment until the
Fed
meets on June 29, Cramer said. Both of these aluminum stocks have fallen, he said, and offered them as the best trades between now and the beginning of the quarter.
We are in a big aluminum cycle, he said.
Garmin Gush
Garmin
(GRMN) - Get Garmin Ltd. (Switzerland) Report
is "the most fabulous company I have ever followed," Cramer said..
Headquartered in the Cayman Islands, Garmin makes navigation, communications and information products for the consumer and aviation industries.
Cramer called the company consumer-friendly and said that it's a company that people become impressed with after using its products.
Garmin has a 14% growth rate, sells at 27 times earnings and has been up more than 128% year over year, he said. Even though, the company is currently three points from its high, Cramer said.
It is a good trade until the last day of June, he said.
Cramer also recommended
Rite Aid
(RAD) - Get Rite Aid Corporation Report
, which he said has been up dramatically, although it was down badly on Thursday..
Rite Aid might be down today because it reported a light quarter and didn't deliver, he said. Although Rite Aid's expense structure seems to be a little out of line, the company has raised their sales guidance and Cramer believes the company will turn around, he said.
In the end, a $4 stock often says it's going bankrupt, but Cramer does not believe that will happen to this company, he said. With $17 billion in sales, there is a chance that it might be a takeover target. But even if it's not taken over, it will rebound on its own with a better quarter, Cramer said.
At the time of publication, Cramer was long Alcan, Citrix, Qualcomm and URS.
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
Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here.
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