When referring to
Level 3 Communications
, Jim Cramer on his
"RealMoney" radio show Thursday, advised a caller never to buy calls on a $4 stock
Level 3, a company that provides bandwidth to Web sites, just signed a deal with
, Cramer said.
He said it's a $16 stock because of its 2009 free-cash flow of $1 billion.
"Level 3 is a company that is literally five times bigger than it is right now," Cramer said. "You cannot catch a quadruple in most stocks."
He told people to buy it because it won't be under $5 for long.
Responding to his next caller, Cramer said
has turned and made some positive changes.
"It's gone from a stock that I disliked to one that I have warmed up to," because oil is down, and the retailer has fallen behind many other companies in its sector, he said.
"I want to own it," Cramer said. "It is going high."
, to Cramer is "a great fourth-quarter play."
The company produces GPS products, which "are like rich people's toys," he said.
Cramer said when he thinks about what does well in sporting goods stores, he keeps coming back to Garmin. He believes that the stock will do well this holiday season.
Cramer said it reminds him of
as expensive stocks that have been hammered.
He told another caller to wait on
to make a pullback before buying it, as it has gone up since Cramer recommended it a couple of days ago.
When a listener called inquiring about
, Cramer said he believes that the problem with Ford is that it's moved up so much in the last week that now people don't want to get into it.
Cramer said he doesn't know if it's done going up for the moment, but he believes that Ford is going to $12, but it might take a pit stop and go a little lower.
Regarding Ford, if Cramer were to buy 200 shares, he'd buy 100 now and 100 later.
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