After Google's ( GOOG) "magnificent" earnings report Thursday night, the stock traded to $346 Friday, within $4 of Jim Cramer's $350 price target. "It's good to be right," said Cramer.

Cramer told his "RealMoney" radio show listeners Friday that Google is benefiting from the "biggest and best secular growth story of the decade." The Internet and Google are both killing traditional forms of advertising, such as TV and newspapers because Internet advertising allows one to target customers and track whether people are actually viewing the ads, he said.

Cramer said he will not issue a new price target for Google because price targets are used mostly as attention-getters. And, as of Friday, Google has people's attention.

However, Cramer believes Google is headed higher, and he explained the logic of his former $350 price target. He said he used an EPS estimate of $7 for 2006 and applied a 50 multiple to arrive at $350. Now, that $7 EPS estimate for 2006 is below all the estimates on the Street, and a 50 multiple is conservative for a company with the kind of growth Google is demonstrating, he said. One could argue Google could make $10 in 2007, said Cramer.

"Forget about $350," he said. All you need to know is "Google is going higher. How much? I don't know. It's still a triple buy."

If you don't own Google and you feel like you missed the boat, said Cramer, "Please buy Yahoo! ( YHOO)." Yahoo! also is benefiting from the same secular growth trends as Google. Although Yahoo! is not as good as Google, said Cramer, it's getting better, and it's a lot cheaper.

Stocks Under $10 co-author David Peltier joined Cramer to talk about Langer ( GAIT), Microfield Group ( MICG) and Ants Software ( ANTS), three stocks brought up during Thursday's "Stump Cramer" segment in which listeners ask about obscure and low-priced stocks.

Peltier said Langer was OK. The company makes orthopedic and skin care products similar to a Dr. Scholl's, he said. It missed revenue expectations last quarter, but nevertheless, Peltier believes the stock can go to $5 or $6 as a recent acquisition should help profits. Langer traded at $4.60 Friday afternoon.

Peltier said Microfield was a "daytrading vehicle." Cramer added the stock was "not something that should be bought at all."

Of Ants Software, Peltier said the company had no revenue for five years, and although it recently had sales of roughly $200,000 and was able to raise some funds, at its current cash burn rate, the company has only about four quarters left until it's "flat out of cash," he said. Needless to say, Cramer doesn't like it.

This is a "motley group," said Cramer. "I don't hear much," to like, he said.

But Peltier was bullish on Lawson Software ( LWSN), a stock recently highlighted in the Stocks Under $10 newsletter. Lawson is one of the few remaining pure plays in enterprise software, he said, and Peltier believes the company could be an acquisition target. Lawson also has announced a number of new contracts recently, said Peltier, and he believes the company is on the right track. He is looking for the stock price to reach "double digits" in the next couple of quarters. Lawson traded at $7.37 late Friday.

Commenting on speculative stocks in general, Cramer said it's fine to indulge a little. Just don't speculate with retirement money, do your homework and limit speculative stocks to no more than 20% of your nonretirement portfolio. Just because stocks are low priced doesn't mean you still can't lose a lot of money, he said.

Options, however, should never be bought by the average individual investor. "You'll be fleeced by your broker. You won't be able to sell ... when you want to ... I guarantee you will lose money" unless you are a full-time trader, he said.

In response to a question about when to sell Altria ( MO), Cramer said he feels very strongly the company will split itself into three divisions -- Kraft, Phillip Morris International and Phillip Morris USA -- once the company's final two major tobacco lawsuits are settled. He believes the three parts are worth $105 a share. He would probably sell a little at $80. Sell some more at $90 and sell the rest at $105, he said.

A caller asked if Research In Motion ( RIMM) is a buy. Cramer said he is not comfortable recommending RIM due to its legal problems regarding patent issues. He prefers Qualcomm ( QCOM), which was trading around $45 late Friday, or Broadcom ( BRCM) at about $43.

Cramer said Caterpillar ( CAT) will be in the penalty box for six months after disappointing investors Friday with its outlook. It will take at least a quarter to see if things are improving, he said. Cramer said the company is hurting from higher materials and production costs and is seeing increased competition from Japan as the value of the yen has declined. If one can wait six months before seeing results, Cramer would hold the stock. If not, he would sell it.

In response to a question about Inco ( N), Cramer said the company is paying a lot to acquire Falconbridge ( FAL). But once the acquisition is complete, he thinks the stock will do well as the Chinese will continue to demand a lot of nickel from the likes of Inco. "I want to own Inco," he said.

Cramer said the downgrade in Broadcom Friday is a mistake. The company reported a very good quarter Thursday, he said, and guided people much higher. He would be buying the stock aggressively and thinks the stock will go to $45 "in a heartbeat."

Cramer is bearish on Oakley ( OO).

Finally, Cramer said the big seller of oil stocks is now finished. If you have been itching to buy an oil stock, Cramer now gives his blessing, he said.

Lightning Round


Cramer was bullish on Cubic ( CUB), Capstone Turbine ( CPST), CBOT Holdings ( BOT), Cemex ( CX), Energy Partners ( EPL) and Accenture ( ACN).


Cramer was bearish on Fording Canadian Coal Trust ( FDG), U.S. Energy Systems ( USEY), Electronic Data Systems ( EDS) and Sirius Satellite Radio ( SIRI).

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

At the time of publication, Cramer was long Altria, Fording Canadian Coal Trust, Qualcomm and Yahoo!.

James J. 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 Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."

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