A Flying LeapLeapFrog Enterprises ( LF), "the ultimate bear stock ... is about to change its stripes," said Jim Cramer Wednesday on his "Mad Money" TV show. "I want you to put the power of hate to work for you and buy a stock that everybody despises," he said. LeapFrog, which makes educational toys, has a history of underperforming, said Cramer. But, "amazingly, the brand is still pretty strong. It's not a damaged company, so much as it is a mediocre one," he said. "But even the mediocre guys have their day in the sun," Cramer added. Cramer thinks the bearish sentiment toward LeapFrog has reached a crescendo, as not one of the 18 analysts who cover the stock recommends it. Twelve have a hold recommendation, and six have an outright sell, he said. It's at the point where "people don't care anymore." When you get that kind of bearish sentiment, said Cramer, all you need is a small amount of good news to make the stock "shoot up." And, Cramer thinks LeapFrog's new product, the FLY pentop computer, which is due out in a few weeks, may be just the ticket. "I'm not betting on a super turnaround. I'm not gambling on the FLY making the stock a double. No, I'm just sure at $14, this stock is just too hated and too undervalued to miss," said Cramer, noting that some "very smart," value-oriented investors own large amounts of the stock. I see the stock going to $25 even if the FLY isn't a hit, said Cramer. Shares of LeapFrog closed Wednesday's regular session at $13.90.
Bullish on Another BearCramer is bullish on Bear Stearns after Lehman Brothers reported a "knockout quarter" Wednesday.
Security PreachMcAfee CEO George Samenuk joined Cramer by telephone on the show. Cramer asked Samenuk about McAfee's new Internet security product. Samenuk said that his company is the first to bring out such a comprehensive Internet security product and that his company was prepared to take on Microsoft ( MSFT - Get Report) or any other current or potential competitor by moving faster than the competition. Cramer asked Samenuk if acquisitions were part of McAfee's strategy. "Not at all," said Samenuk, who said he remains focused on McAfee's core business of security. Cramer wrapped up the interview saying, "Now you know why I like the stock. This guy's got the game plan. He's making you money.
United About AetnaCramer remains bullish on UnitedHealth Group ( UNH - Get Report) despite competitor Aetna's ( AET) cutting of its earnings guidance Tuesday evening. Aetna isn't as well run as UnitedHealth, said Cramer, and its revenue streams aren't as diverse or fast-growing as those of UnitedHealth. Additionally, UnitedHealth has a "hammerlock" on seniors, going from $9 billion to $15 billion once its deal with Pacificare Health Systems closes. "This
BullishCramer was bullish on Bristol-Myers Squibb ( BMY - Get Report), Gillette ( G - Get Report), KeySpan , Skyworks Solutions ( SWKS - Get Report), Tesoro ( TSO), Frontier Oil , Penn National Gaming ( PENN - Get Report), Duke Energy ( DUK - Get Report), Syneron Medical ( ELOS), Patterson-UTI Energy ( PTEN - Get Report), General Dynamics ( GD - Get Report), Ruth's Chris Steak House ( RUTH - Get Report), Georgia-Pacific , Weyerhaeuser ( WY - Get Report), Plum Creek Timber , Lucent Technologies ( LU), Cnet Networks , Charles Schwab ( SCH), Genentech , Amgen ( AMGN - Get Report), Celgene ( CELG - Get Report), Exelon ( EXC - Get Report), Ballard Power Systems ( BLDP - Get Report) and Sears Holdings .
BearishCramer was bearish on Reebok International ( RBK), Shanda Interactive Entertainment , Adobe Systems ( ADBE), Forward Industries ( FORD), Allegheny Energy , Limited Brands ( LTD), VeriSign ( VRSN), Allied Waste Industries , Stryker , OSI Pharmaceuticals ( OSIP) and Air T ( AIRT). *For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|