Skip to main content TV Recap: See Dow Run

Cramer sees the blue-chip index as beginning a 17% move up this year.

"You're seeing the beginning of the major run I have been predicting for the


this year when I said it was going to be up 17%," Jim Cramer said on TV's Wall St. Confidential

Web video Wednesday.

There are "way too many" Dow stocks that are selling at 12 to 14 times earnings, which are generating "too much cash" and beating their numbers "substantially," he told Gregg Greenberg, the host of Wall St. Confidential. "We came into this earnings season with very low expectations."


(KO) - Get Coca-Cola Company Report

has been in the range of $45 to $50 for many years "because it hasn't had an acceleration in earnings or revenue," Cramer said. And now it has double-digit revenue growth and a "real big" acceleration in earnings.

"Why that stock would only be at $51 a year from now is ridiculous," he continued. "It could be at $60."

Similarly, Cramer believes


(MRK) - Get Merck & Co., Inc. Report

is still "very cheap" at $50 and could also go to $60, if not more.

"Historically, what has happened is that you get an initial burst when you have a big upside surprise," he said. "Then you mark time, and as soon as earnings season is over, you see a gallop."

People agree that Coke is really good, but they're waiting for


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(PEP) - Get PepsiCo, Inc. Report

to report next week, Cramer said. They also feel Merck is really good, but are waiting for all the drugs to come out with earnings. "The Dow components in each of these areas are much better," he said.

Out of them all, Cramer said he believes that only

General Electric

(GE) - Get General Electric Company Report



(IBM) - Get International Business Machines Corporation Report

have reported numbers that can't seem to get their stocks going. "GE did not have a strong quarter," he said.

Further, Cramer said company buybacks are starting to play a role, as people witness a "shrinkage of the float." In fact, 29 out of 30 companies in the Dow have been buyers of their own stock, he said.

"The buybacks have been bountiful but haven't meant anything," Cramer said. "Suddenly they are really starting to mean something." And in the meantime, initial public offerings have slowed down and the deals have accelerated.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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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