There ought to be a handbook for what still can be bought after a three-day rally. For me, the issue is always not paying up too much but not going so against the flow that you end up buying stuff that never goes up. You don't want to buy stocks that have things wrong with them, so wrong that they're reasons the stocks didn't move up in the first place. You need stocks that may have been held down for a reason, a short-term reason that soon will be forgotten.
Wednesday night on my television show, "Mad Money," I delivered a list I crafted of 10 such stocks. Many of them are names I own for my
Action Alerts PLUS portfolio, but some could be just for trades. I can't trade, as close readers of this column know, but I can tell you about trades that I see
when to sell even if I can't in Action Alerts PLUS, which is the charitable trust I mention on the television show. I give my gains for Action Alerts PLUS to charity.
So, without further ado, here's the top 10 list of stocks you still can buy and the reasons I like them.
: If buyers take up the retailers, restaurants will be next. I think McDonald's has been hurt by higher oil prices and higher commodity prices, and they both could be going Mickey D's way now. By the way, this stock is dirt-cheap. I also like
, which are better than McDonald's in some ways, but have moved ahead of it, so that quality might be reflected in their prices.
: Here's a company that, like
, that simply hasn't gotten its due in this tape, despite its gigantic buyback. I think that buyback is really kicking in here. One of my rules when I come in late, after a rally, is to buy stocks with big buybacks. That way, if I get hung, I have a place to sell it back at a reasonable level. That's the reason I included this one over
, which is better and, for the growth, cheaper.
: Why wait until they do the deal with some wireless company and the stock jumps? This company's stock is so weighed down by Adelphia that you have to believe you can buy it here and not get hurt too badly. And if it picks up a new champion who notices it hasn't moved, you should make some good dough. Again, it has a big buyback in place, a necessary ingredient after a big three-day run.
4. UnitedHealth Group
: Someone was selling all of these stocks Wednesday because they are viewed as being too defensive. Someone had the good sense to get Morgan Stanley out on a limb buying it, but Morgan had nowhere to go with it, so the supply weighed on the stock. What an opportunity ahead of the split! Monster buyback there, too.
5. Automatic Data
: This is a hedged bet. The company's earnings are directly impacted by rising short-term rates. If we get "
not done" stories, you should do fine with it, and those stories are
Editor's note: Be sure to read the second half of Cramer's top 10 list.
At the time of publication, Cramer was long J.P. Morgan, Commerce Bancorp, UnitedHealth Group and Comcast.
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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