Ever want to be someone else? Video games let you do just that, and games are the "new motion picture for the 11-to-17-year-old crowd that every advertiser wants," Jim Cramer said on his
"RealMoney" radio show Tuesday.
That's why he said it's time to look at
"Now understand, I have been saying for the last week that this stock should be bought, that it has bottomed and that you need to get in ... and sure enough Electronic Arts is up a couple of bucks," he said.
But the stock used to be at $67 and it's now near $54, so Cramer believes that it can go higher. And he believes that the release of its newest game,
, is big and going to get bigger.
Plus, he said, the whole industry cycle is big, with the coming of the PlayStation 3, the new Nintendo hardware and the recently released Xbox 360.
Electronic Arts is only now thinking about exploring the possibilities of advertising, and when it does, that will give the stock a huge lift, Cramer said.
game, and how successful Cramer believes it will be, also makes him think of buying
, a stock he used to own for his
ActionAlerts PLUS charitable trust portfolio.
After the stock rose 9 points, he worried that he was greedy, so he sold his position in keeping with one of his most oft-recited rules, "bulls make money, bears make money, and hogs get slaughtered."
"Little did I know there would be another 3 points," Cramer said.
But both stocks are up, so Cramer said to wait for a pullback. It's only March, and this trend will last all year, he said. "When we get a pullback, you do a 'mon back."*
"For a lot of you out there, your cell phone is your constant companion," Cramer said, as the phones enable users to send text messages, pictures and even hop online. "Now
your cell phone could replace your wallet," he said.
Cramer said that in Asia and Finland, "cash is a thing of the past ... if you want to buy a Diet Coke in Finland, you just point your cell phone and shoot."
The U.S. is well behind in this advanced technology because our infrastructure was built on wireline, not wireless.
But Cramer said that the upgrade is coming. "And when it does,
will understand this world."
The company is very forward-looking, will lead the revolution and be the long-term play, he said. Shorter term he likes
for its slick products and its management. But longer term, the trend "is Nokia's to win."
Let's think about deadly self-defense, Cramer said, referring to a
report that Florida will now allow the use of deadly force against muggers, carjackers and other attackers. Plus, 15 other states are considering such proposals.
This says to Americans that they should go get armed, Cramer said. "When I see that, I think of
Smith & Wesson
The company's chief executive bought tons of shares right around the time this story broke, he said.
Not only is there a new catalyst out there to spur growth at the gun manufacturer, but also many of its lawsuits are now behind it. So the money that once went into litigation will be able to boost the company's bottom line, he said.
Now imagine you're a cigarette company and the Supreme Court just ruled that you have to pay millions to the family of two-pack-a-day smoker who died of cancer, Cramer said. It's easy to do if you're
because that's what just happened to the company.
With this news, one might assume that the stock of its parent company
But an hour after the story broke, the stock rallied, Cramer said. "This is a lesson in counterintuition."
"This is one of the last court suits to wend its way through the legal system, and as tobacco companies put litigation behind them Cramer believes that their stocks will rise.
He owns Altria for
"Like with Smith & Wesson, when you put litigation behind you, earnings go higher," because for the longest time lawsuits were a major cost of doing business at companies like Altria.
Cramer believes that the stock, which trades near $73, could go to $105 after its major Illinois and Justice Department suits end. He sees the company breaking up into Kraft, Philip Morris International and Philip Morris, and he likes it for both the short and long term.
Hurricane season begins on May 15, and meteorologists are predicting a particularly active season, Cramer said.
"This can be gamed, too," he said. "The system has ways to make money off of everything. You have to think like the system."
that make money from hurricane season, he said.
"These are two companies that everyone finds themselves at both before and after a hurricane. ... They make all their big extra money during hurricane season," said Cramer.
And even though insurers are virtually in price wars at all times, periodically they get to raise rates, including after the destruction of a hurricane, he said.
in the insurance sector. It's the best, he said, adding that he believes it can go higher.
Cramer told a caller that he chose the right stock when he picked
, if for no other reason than because the price of natural gas has come down so much.
Energy used to make plastics is one of the company's largest expenses, he said. And now that natural gas has hit a 52-week low, the company should have "easy comparisons," meaning that its current quarter will look substantially better than the same period a year ago because costs fell significantly.
But because the caller bought options, Cramer said that the stock may not rise on the good news in time.
He added that he rarely recommends that callers buy options because it requires devoting so much time and energy to the investment in order to succeed.
Cramer also said that he likes
, which just reported earnings that were better than what he was expecting and raised its guidance for the upcoming quarter.
"When we look at why
isn't doing well, why
are stuck in a rut, it's because they do not make the chips of the future," Cramer said.
These chips are the ones that make color graphics fast and video games lifelike. "Rambus makes those chips," he said.
The stock has run higher, he said. And even though he doesn't like to buy strength, he said he doubts that Rambus will dip after its upbeat earnings news.
The stock is just now taking out its 52-week high, he said. "I think the stock could go to $40."
Cramer also said that he liked
as another way to make money off of geopolitical strife.
When people blow up oil and gas infrastructure, it's Willbros that fixes the stuff, Cramer said. He believes that it's a cheap stock relative to its earnings, and "unless you know something I don't know, I think the terrorism game of blowing up oil is here to stay."
He told another caller that oil companies do have low price-to-earnings multiples but that there may be reasons for that.
Wall Street measures growth, he said; when growth is above average, we pay more.
both have price-to-earnings ratios that are well below the the average price-to-earning of the
, which is at 16.
That's because Wall Street sees oil prices holding steady, so he does not anticipate accelerated growth from any of these companies.
And if the democrats take Congress, Cramer said they could try to "tax the profits of the oil companies into oblivion."
He said that now that so many airlines have declared bankruptcy,
"now dominate the friendly skies."
They have taken up the slack from bankrupt airlines and now people think that they'll also do well because oil prices have come down.
Whether or not oil prices fall, Cramer said that the two companies will likely pick up routes and business from fallen competitors but that he will never recommend an airline. "I've lost too much money in airlines."
He told a caller that if he must buy an airline, than his picks strictly for a trade would be AMR, Continental and
GOL Linhas Aereas Inteligentes
*For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.
At the time of publication, Cramer was long Altria.
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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