Investors are going to be "shocked about how good this Christmas season is," Jim Cramer told his "RealMoney" radio show listeners on Friday.
Several semiconductor companies gave updates or reported earnings this week, and from them we know the electronic gadget business is "smoking," said Cramer. But so too are the retailers, including apparel merchants, although nobody is talking about it, he added. The recent bout of cold weather across the country is giving a boost to sales of high-margin cold-weather gear, said Cramer, and the timing couldn't be better.
Cramer believes this is part of the reason the market is not rolling over. More and more people are coming to his view and are building positions.
Cramer's shopping list for retail includes
Cramer said he is "betting against the house" with his call, as the market is "overrun" with bears who believe there is "nothing cooking in retail." That's "so wrong," he said. Cramer said he has sources "at all these places" that he hears from daily, and he hasn't heard a single negative word this week.
Cramer believes retailers will begin talking about the strength of holiday sales as early as next week, so time is limited to make a move. The "time is now," he said.
Stocks Under $10 co-author Will Gabrielski joined Cramer to talk about stocks that had stumped Cramer on Thursday's show.
Gabrielski said he sees "nothing too exciting" about
. The company is cheap on valuation, he said, but it has little in the way of revenue growth. He would pass on the stock.
Gabrielski said that both a new CFO at
, a so-called hurricane recovery play, and insider selling raise red flags for him. To play the hurricane recovery, he would recommend
( FLE), which just reported a good quarter, he said.
Gabrielski wants to do more homework on
. Financially, the company seems secure, but he wants to find out more details about the effectiveness of the company's products, which use heat to help chemotherapy and radiation treatments to work better, he said.
, Gabrielski said the company has a potentially valuable gas property in Kentucky. But right now, it has little in the way of revenue and is likely to do a stock offering. He would wait until at least after the secondary before taking a look at the stock. Cramer said "that doesn't sound very good... stay away from that one."
Finally, Gabrielski said a stock recently profiled in the
Stocks Under $10
, which has "done a great job" restructuring its business. The company is on track to be cash-flow positive in 2006, he said, and he believes it will be able to positively surprise investors next year as most of its energy production comes from coal, not natural gas, he said.
In response to a question about
, Cramer said the stock is "liked but not loved" on Wall Street. It's also not cheap, but it has "incredible growth" at 45% a year, he said. Cramer believes Salesforce is "taking it to
Commenting on news that George Soros had taken a position in
( LU), Cramer said "I don't think much of Soros' stock picking." Furthermore, the amount of shares purchased is not significant for Soros, he said.
Cramer said he is "not seeing anything short or long term" that makes him feel very good about Lucent. He feels trapped in the stock and hopes it will go up so that he can sell some.
United States Steel
, Cramer said he would never bet against a stock trading at five times earnings, but he is not a fan of steel stocks. If he had to own one, he would own
even though it trades at 8 times earnings. Nucor is a "best of breed," he said.
Commenting on a downgrade of
Thursday by Sandler O'Neill, Cramer said it was a "really bad call," and he would double down on the stock.
Cramer was bullish on
Whole Foods Market
( WFMI) and
Sirius Satellite Radio
Cramer was bearish on
Family Dollar Stores
At the time of publication, Cramer was long GameStop, Halliburton, Lucent, Microsoft and Sears Holdings.
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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