The market is experiencing a bout of "profit-taking fever," Jim Cramer said Thursday on his
"RealMoney" radio show.
That's healthy, he said, as the market has had a powerful rally in recent weeks. With so many stocks at or near their 52-week highs, it's reasonable they would take a breather. The important thing is to know your stocks, so you don't get shaken out, he said.
raised its first-quarter outlook Thursday, but the stock was down as of late Thursday.
reported "great news" in its midquarter update Wednesday night, said Cramer, but its stock was also down late Thursday. Likewise,
on Thursday reported rising gross margins and "terrific bookings" in its quarterly report, said Cramer, but its stock was down on the day.
When everyone knows things are good, said Cramer, you tend to have a bit of a selloff. Investors want to lock in profits.
But if you are able to have some perspective, Cramer believes the good news in Qualcomm, Texas Instruments and National Semiconductor will be rewarded. All of them make parts that go into the products that make up the tech gadget revolution, he said.
Cramer believes the "selling squall" will probably last until the
meets and likely raises interest rates next week.
This is day one of the selloff, he said, adding that he likes to buy stocks on day three or four of a selloff.
Cramer On Demand
is in the midst of a turnaround thanks to improvements in the look and feel of its stores.
Cramer disliked Wal-Mart for five years, he said, because its stores had lost their "excitement." People want to feel good when they spend, he said.
But Wal-Mart has put a former
executive in charge of improving the stores. Target "gets it," he said.
Cramer turned bullish on Wal-Mart in September, and the stock has gone to $50 from $43. But it has now pulled back to about $47 in a "classic stair-step" pattern, said Cramer, and he likes the stock very much. Cramer wishes his restrictions would allow him to buy the stock for his charitable trust, Action Alerts PLUS. (Cramer discussed Wal-Mart as part of a weekly feature on TheStreet.com where readers vote on a stock they'd like to hear him discuss -- vote on next week's stock at the end of this article! Choices include Apple, Dell, Ford, Tivo, Toll Brothers and Sun Microsystems.)
In his weekly "Stump Cramer" segment, Cramer was tripped up by
China Techfaith Wireless Communication Technology
Superior Well Services
( SWSI), which he called "one of the best" oilfield services companies.
In response to a question about
, Cramer said Tom Brown of Bankstocks.com called the student loan servicing company "one of the most attractive investment opportunities of 2006." Cramer, reading from Brown's report, said the skeptics are "way, way too negative" and have "concocted arguments that make no sense." Cramer said Brown is a "moneymaker," and "his picks win."
, Cramer said he is a fan of manager Will Danhoff because he buys stocks that go up in good times and doesn't get hurt in bad times.
( LU), Cramer said even though he owns it and is positive on CEO Patricia Russo and CFO Frank D'Amelio, he doesn't believe the stock will do much for the next couple of quarters. Lucent "did one thing right," he said, when it reported its last quarter. It took all the optimism out of the stock, he said. So, Cramer doesn't believe there is much downside in Lucent. But, "I don't know if I can make you money in Lucent right now," he said.
Cramer would buy
before it splits into two separate entities. Cramer is bullish on both CBS and Viacom. He likes CBS because it is a "moneymaker," and he likes the new Viacom, which will have the high growth cable TV channels. Both entities will have excellent CEOs, he said.
( SUF) is a controversial stock and a "highly speculative" company. Critics say management's track record "isn't any good" and that it can't be trusted, he said. The stock does not belong in an IRA or a 401(k), said Cramer.
will do a "gigantic buyback" and implement a "remarkable expansion" of its drilling activities is a boon to drillers such as
, said Cramer. All are going to have up years in 2006, he said, because of Chevron's increase of capital expenditures by 35%. That should prompt other oil companies to do the same, he said.
Cramer likes the oil drillers but said to sell the oil companies.
At the time of publication, Cramer was long Halliburton, Lucent and Qualcomm.
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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