ING ( ING) is the Google of banks, Jim Cramer said Friday on his "Mad Money" TV show. The Dutch financial services company Thursday reported strong earnings growth fueled, in large part, by "phenomenal" growth in its Internet banking division, said Cramer. He believes Wall Street isn't yet fully appreciating the growth in ING's Internet banking business because it is still a small part of the whole company. But, it's getting bigger, he said. Cramer believes ING's stock is headed higher, in part because analysts' forecasts, which are based on ING management's conservative guidance, are too low, he said. Cramer believes ING is headed for $37. The stock ended the regular trading session Friday at $31.55. In response to a question about whether rising interest rates might hurt ING, Cramer said he believes interest rates are almost done going up. The environment is perfect for ING, he said. Commenting on competitor, American International Group ( AIG - Get Report), which announced a restatement this week, Cramer said that accounting irregularities normally mean it's time to sell. But, in this case, AIG is a buy "if not a triple buy," he said. The reason is the accounting problems occurred under AIG's previous management. What's more, the restatement actually resulted in a gain, not a loss, he said. Finally, AIG has made positive changes whereas it used to be one of the most opaque and secretive companies, it is now one of the most transparent, he said.
Laser BuysCramer is bullish on industrial laser products company Rofin-Sinar Technologies ( RSTI). Thursday the company reported "beautiful earnings that no one expected" fueled by 12% growth in sales of macro lasers, "the big kinds," he said. Twelve percent growth in macro lasers may not seem like a lot, it's impressive considering big industrial companies aren't doing well right now, Cramer said. Even with bad end markets, Rofin-Sinar managed to do well, he said. Cramer believes Rofin-Sinar is doing well despite an economic slowdown because the laser can be a cost saver. Companies in the auto industry, for example, are motivated to use lasers wherever they can, he said. Rofin-Sinar's lasers are also used in the computer-chip manufacturing business, he said, although growth in that area last quarter was not the driver. Nevertheless, Cramer sees opportunity for Rofin-Sinar in that market as more electronic devices are produced that contain more complicated and more powerful chips. Commenting on Ionatron ( IOTN) which makes lasers for military applications, Cramer said he is not a fan of defense stocks right now. Raytheon ( RTN - Get Report) is doing some interesting things with lasers, he said, and would be his choice if he liked the defense sector. Of medical laser systems company Laserscope ( LSCP), Cramer said Laserscope has been disappointing, and he is not a fan. Cramer would swap out of Laserscope into Cutera ( CUTR - Get Report), which has better management and better numbers, he said.
Stericycle's Got WheelsCramer likes Stericycle ( SRCL - Get Report), a biohazard waste management company, as a long-term investment. The company may dispose of syringes, he said, but its real business is cutting through red tape. There are numerous rules and regulations pertaining to biohazard disposal, said Cramer, and Stericycle is a master of cutting through the red tape. It's only likely there will be more regulations and restrictions in the future, he said, and with an aging population and people living longer, Stericycle is in the midst of a secular growth trend. What's more, Stericycle is "kicking the butt" of its competitors. The stock is expensive, though, said Cramer. It's trading at 25 times 2006 earnings and is close to a 52-week high. "You can take your time" buying it, he said. That said, Cramer believes Stericycle deserves to trade at a premium because "it's a good company in an expanding market." It has had positive operating cash flow every quarter since September 2001. "These guy's don't disappoint," he said. It's a "sleep-at-night stock."
Mad MailCommenting on Sears Holdings ( SHLD), Cramer said that focusing on Sears solely as a real estate play is a mistake. "There's a lot more to the story than just real estate," he said, such as the possibility for margin expansion. Cramer added that he believes there may be "two to three negative articles about Sears in the next few days." In response to a question about mineral extraction companies that might benefit from new battery-dependent technologies found in applications ranging from consumer electronics to hybrid vehicles, Cramer said he likes lithium mining company Sociedad Quimica y Minera ( SQM - Get Report). Remaining on the subject of mining, Cramer said he also likes Rio Tinto ( RTP). Of Fortune Brands ( FO), Cramer said while results at Anheuser-Busch ( BUD) and Molson Coors Brewing ( TAP - Get Report) have been disappointing, Fortune Brands CEO Norm Wesley "told a good story about high-end wine," and Cramer is "not willing to write that off." In response to a question about Stride Rite ( SRR), which acquired Saucony in September, Cramer said there is still room in the market for Stride Rite, but it's not a great company. Cramer prefers Nike ( NKE - Get Report).
Lightning RoundBullish Cramer was bullish on Qiagen ( QGEN - Get Report), Nabors Industries ( NBR - Get Report), Halliburton ( HAL - Get Report), Boeing ( BA - Get Report), Allegheny Technologies ( ATI - Get Report), Honeywell ( HON - Get Report), RTI International Metals ( RTI), Intuit ( INTU - Get Report), United Parcel Service ( UPS - Get Report), Del Monte Foods ( DLM), CBOT Holdings ( BOT), Consol Energy ( CNX - Get Report), Intel ( INTC - Get Report), Microsoft ( MSFT - Get Report), Procter & Gamble ( PG - Get Report), PetroQuest Energy ( PQUE), Mitsubishi UFJ Financial ( MTU), Korn/Ferry International ( KFY - Get Report), Bunge ( BG - Get Report), Archer Daniels Midland ( ADM - Get Report), St. Joe ( JOE - Get Report), United Technologies ( UTX - Get Report), Exelon ( EXC - Get Report), PPL ( PPL - Get Report) and William Wrigley Jr. ( WWY). Bearish Cramer was bearish on Sony ( SNE - Get Report), Parker Drilling ( PKD), SBC Communications ( SBC), Verizon ( VZ - Get Report), BellSouth ( BLS), Furniture Brands ( FBN), Helen of Troy ( HELE - Get Report), DSW ( DSW) and LSI Logic ( LSI - Get Report).
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|