Click here for an archive of Cramer's "Mad Money" recaps. In order to stop the flu, you need to be able to diagnose it quickly, which is why Jim Cramer told viewers of his "Mad Money" TV show on Friday that he likes diagnostic-test maker Quidel ( QDEL), as a play on avian flu. There's not enough flu vaccine, said Cramer, so a speedy and effective diagnostic tool is paramount in the fight against the flu, said Cramer. Quidel is profitable and stands a good chance to make a lot of money from its test, said Cramer. Nevertheless, the most important thing Quidel has going for it is the "buzz" that will be sustained "as we keep talking about the flu." A caller asked if flu concerns might hurt holiday travel, thus making travel companies potential short candidates. Cramer said he didn't believe so as both Priceline.com ( PCLN) and Expedia ( EXPE) recently said the travel business has picked up. Gas prices have turned down, he said, and that trumps flu concerns. Another caller asked if Yum! Brands ( YUM), which owns Kentucky Fried Chicken, might see slowing growth in China as a result of bird flu. Cramer said as a play on China, he would swap out of Yum! and into Starbucks ( SBUX) regardless of avian flu concerns because Starbucks is "right where Yum! was two years ago" in China, and it has even more growth ahead of it there than Yum! does at this point.
Powering UpCramer is bear hunting in Powerwave Technologies ( PWAV). The cell-phone tower antenna and amplifier maker reported a "great" quarter Thursday, said Cramer, and he believes it is just a matter of time before the lone bearish analyst on the stock, Michael Ounjian of Credit Suisse First Boston, and the shorts, which make up about 9% of the company's float, capitulate. Cramer said Ounjian initiated coverage of Powerwave in June 2004, when the stock was at $7.61, with an underperform rating, which is "genuine Wall Street gibberish for sell," he said. Powerwave closed Friday at $12.66. Cramer said 2005 consensus EPS estimates for Powerwave are now nearly twice what Ounjian thought they would be. And Ounjian likes Andrew ( ANDW), said Cramer, even though Andrew's cell-phone tower base station business is flat while Powerwave's is up 56% year over year. "Andrew is a joke! Completely messed up," he said. "This guy's starting to look crazy!" said Cramer. "Michael Ounjian at CSFB will break when it comes to Powerwave," said Cramer. "When that happens, I see the stock jumping 3 or 4 points because all the shorts will have to cover. You need to be buying the P-wave now," he said, adding that the trade will "most definitely" be over when the analyst, and the shorts, capitulate.
Going to ExtremesCramer is extremely bullish on "extreme" sports retailer, Zumiez ( ZUMZ). Extreme sports like snowboarding are going mainstream, according to an article in USA Today, and if that's true, said Cramer, Zumiez is the stock you need to own. Most importantly, Zumiez "stands up to the homework test," he said. The company reported October same-store sales growth of 10% vs. expectations of 5%, said Cramer. Total sales were up 29%, he said. The company has 164 stores, mostly in the West, but is expanding into the Midwest and the East. It has opened 31 stores so far this year and has four more in the works in the next two months, said Cramer. With gas prices coming down, Cramer believes people who may have been reluctant to travel very far to ski and snowboard will rethink their plans. "If Zumiez can do this kind of growth in an environment where gas is expensive, just imagine how well it will do as the price of gasoline comes down," he said.
Great FortuneFortune Brands ( FO) CEO Norm Wesley joined Cramer by telephone to talk about what's going on in the home improvement market. Two competitors, American Standard ( ASD) and Masco ( MAS) both recently "hit the wall," said Cramer. "But, it looks like Fortune Brands didn't" based on Fortune Brands' earnings report Friday. "You're taking share, aren't you?" asked Cramer. "Yeah, we are, Jim," said Wesley. Wesley said his company saw double-digit growth its home category led by cabinets, Moen faucets and entry doors. "I think it has to be
Lightning RoundBullish Cramer was bullish on Google ( GOOG), Nucor ( NUE), Emerson Electric ( EMR), Rockwell Automation ( ROK), Texas Instruments ( TXN), Advanced Micro Devices ( AMD), PNM Resources ( PNM), Coley Pharmaceutical Group ( COLY), Washington Group International ( WGII), Fluor ( FLR), Jacobs Engineering Group ( JEC), Michael Baker ( BKR), IntraLase ( ILSE), Pinnacle West Capital ( PNW), L-3 Communications ( LLL), Hudson City Bancorp ( HCBK), Allegheny Technologies ( ATI) and Lowe's ( LOW). Bearish Cramer was bearish on Pathmark Stores ( PTMK), Symantec ( SYMC), Reliance Steel & Aluminum ( RS), Navistar International ( NAV), Northfield Laboratories ( NFLD), Diodes ( DIOD), Tessera Technologies ( TSRA), Duke Energy ( DUK), Northrop Grumman ( NOC), Unova ( UNA), EMC ( EMC), Sovereign Bancorp ( SOV), Ixia ( XXIA) and Taser ( TASR).
|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|