No Fawlty TowersThere's a new sheriff in town among the cell-phone plays, and that's Crown Castle International ( CCI), said Jim Cramer on his "Mad Money" TV show Thursday. Crown Castle owns and leases cell-phone towers. But, the company also has a key technology in the coming "sea change" of live video over cell phones, said Cramer. This "extra edge" distinguishes CCI from its cell-phone tower competitors, he said. Although no one can be sure how popular video over cell phones will be, even if it flops, CCI is well positioned in the current cell-phone-tower-leasing bull market, said Cramer. Cramer believes that Verizon ( VZ) will begin offering live video via cell phones in 2006 using Crown Castle's technology. Nokia ( NOK) may also use Crown Castle's technology, he said. Finally, Broadcom ( BRCM), a key player in video over cell phones, is aligned with Crown Castle, as well, said Cramer. Cramer is still bullish on cell-phone tower plays Global Signal ( GSL) and American Tower ( AMT) as well as handset maker, Motorola ( MOT), cell-phone "innards" maker Skyworks Solutions ( SWKS) and cell-phone chipmaker Qualcomm ( QCOM). But, "I just like CCI better than any of them at these prices," he said.
Koor ConstituencyCramer is bullish on Koor Industries ( KOR), the largest Israeli conglomerate, after recent news that Kuwait may end its decades-long embargo against Israel. If that happens, said Cramer, not only will Koor benefit from Kuwaiti demand for Koor's products such as telecom equipment, but it may also benefit from Kuwaiti oil companies investing in Israeli stocks. Even if the embargo doesn't end, said Cramer, Koor will be OK because the Israeli economy is "really steaming," he said. In response to a question about Israeli pharmaceutical company, Teva Pharmaceutical Industries ( TEVA), Cramer said he prefers Koor as a way to play Israel because Koor has exposure to the entire Israeli economy, whereas Teva only has exposure to drugs.
Hansen Is as Hansen DoesMarketWatch senior columnist Herb Greenberg joined Cramer to talk about Hansen Natural ( HANS). Greenberg has written bearishly on Hansen. Greenberg said he wouldn't change a word of what he's written on Hansen despite the stock having gone up since he's written about it. Greenberg said Pepsi ( PEP), which has talked about strong sales of energy drinks, is likely taking market share from the likes of Hansen. Cramer disagreed, saying that according to Hansen, the company's Monster energy drink had actually gained market share. "They still have good market share," said Greenberg, "but Rockstar ... which is being distributed by Coke ... is gaining share." Greenberg added that sequential growth for Hansen peaked in July and to expect big competition from Coke ( KO) and Pepsi, both of which are putting lots of money into their energy drink brands, which should eat into Hansen's sales, said Greenberg. "I think that this is no longer a growth story," said Greenberg. Cramer said he and Greenberg were at "loggerheads" on Hansen. Cramer then asked Greenberg to talk more about why he is bullish on newspaper stocks. Cramer is a bear. Greenberg said there's no way to tell at these low prices that newspaper stocks aren't a bargain. "These are not companies that are going away any time soon ... People have to understand the difference between the trade and a potential long-term investment." However, "they've got to be able to stay in the game," countered Cramer. Commenting on CVS ( CVS), Greenberg said CVS' September sales report was a disaster. "Not only are general sales going down, same-store sales are going down," said Greenberg. "I'm liking Herb on that one," said Cramer.
Mad MailIn response to a question about Grant Prideco ( GRP), Cramer said there is still some pain to come in oil stocks, so "keep your powder dry." He likes Schlumberger ( SLB) at Thursday's regular session closing price of $78.55 better than Grant Prideco. Cramer does not buy stocks just for the dividend, so he is not a fan of Bank of America ( BAC), which he believes is a "value trap." Cramer expects the stock to flat-line. In response to a question about hurricane recovery plays, Cramer does not like Allied Waster ( AW) or Waste Management ( WM). "Not everything yields a winner," he said. Google ( GOOG) received a "big number bump" last night, said Cramer. The increase in earnings estimates by analyst Anthony Noto were so big, said Cramer, Cramer now believes his $350 price target for Google is conservative. Commenting on the selloff in oil stocks, Cramer said we haven't reached capitulation, yet. He expects to see a few analyst downgrades and then we may reach a bottom, he said. And finally, Cramer said a cold winter would be a blessing for retail stocks. Retailers sell more high-margin coats when the weather is cold, he said.
BullishCramer was bullish on Walt Disney ( DIS), Starbucks ( SBUX), Wyeth ( WYE), Schering-Plough ( SGP), Rio Tinto ( RTP), Church & Dwight ( CHD), Texas Instruments ( TXN), Google ( GOOG), Archipelago ( AX), Advanced Micro Devices ( AMD), Amgen ( AMGN), MedImmune ( MEDI) and Altria ( MO).
BearishCramer was bearish on Pixar ( PIXR), Hasbro ( HAS), Mattel ( MAT), Forest Laboratories ( FRX), Energy Conversion Devices ( ENER), United Micro Electronics ( UMC), Taser ( TASR), Montpelier Re Holdings ( MRH), Silicon Storage Technology ( SSTI), Norfolk Southern ( NSC), Zimmer Holdings ( ZMH), Solectron ( SLR), Flextronics ( FLEX), BioCryst Pharmaceuticals ( BCRX), Akamai Technologies ( AKAM), PHH ( PHH), 24/7 Real Media ( TFSM), Nextel Partners ( NXTP), Nasdaq Stock Market ( NDAQ) and Sun Microsystems ( SUNW).
Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
|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|
|Check back for more of Cramer's Rules|