SanDisk's Music AppreciationSanDisk ( SNDK) CEO Eli Harari joined Cramer by telephone on the show. Cramer asked Harari why his company was getting into the MP3 music player market when every company except Apple ( AAPL) has failed with it. Harari said he believes the biggest market for music worldwide will ultimately be cell phones equipped with music capabilities. Cramer said he agreed and asked Harari if SanDisk's competitor, Samsung, is possibly losing money on its deal with Apple to supply chips for Apple's new iPod nano given the nano's pricing. Harari said he did not believe Samsung was losing money on the deal. But, he said through the nano, Samsung was upstaging and displacing micro-hard drives with its flash memory chips, which is good news for SanDisk in that it helps open up new markets. Cramer asked Harari what percentage of cell phones will have slots for flash memory cards in 2006. Harari said 150 million out of roughly 700 million handsets produced in 2005 would have flash memory card slots, and the market would continue to grow in 2006. Music downloads should fuel that growth, he said. Commenting on its multilevel-cell (MLC) technology, Harari said SanDisk had licensed the technology to Intel ( INTC), Samsung, Toshiba and Hitachi ( HIT), and his company is suing STMicroelectronics ( STM) over the technology. Cramer summed up the interview saying SanDisk "is the best-performing stock in tech," and it is going higher, he said.
Lightning RoundBullish Cramer was bullish on Sirius Satellite Radio ( SIRI), Lucent Technologies ( LU), Lowe's ( LOW), Exxon Mobil ( XOM), Intermagnetics General ( IMGC), GenCorp ( GY), LeapFrog Enterprises ( LF), Sonic ( SONC), America Movil ( AMX), Pike Electric ( PEC), St. Jude Medical ( STJ), Weyerhaeuser ( WY), Dresser-Rand Group ( DRC), Netflix ( NFLX), National Oilwell Varco ( NOV), Aqua America ( WTR) and Chesapeake Energy ( CHK). Bearish Cramer was bearish on Home Depot ( HD), Amylin Pharmaceuticals ( AMLN), TransGlobe Energy ( TGA), Fastenal ( FAST), Applied Materials ( AMAT), Petrobras Energia Participaciones ( PZE), First Marblehead ( FMD), Brightpoint ( CELL), Synovus Financial ( SNV), Vail Resorts ( MTN), Forward Industries ( FORD), Hewlett-Packard ( HPQ), Nortel Networks ( NT) and Blockbuster ( BBI).
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|