Jim Cramer told listeners to his "RealMoney" radio show Friday this is the "best market we've had in six years." Don't be dissuaded by bears, who keep trying to poke holes in the market, he said. That the market is going up in a stair-step fashion is exactly what he wants to see. The one thing that would make Cramer less bullish would be an increase in speculation. But, he's not seeing it. A case in point is Qualcomm ( QCOM), which Thursday announced a deal with Verizon ( VZ) to deliver longer videos over cell phones. That kind of announcement would have spiked the stock in a more speculative environment, said Cramer. Instead, Qualcomm was down Friday afternoon from where it had been when the news was announced. "If there isn't a lot of speculation, you should feel better, not worse, about the stock market," he said.
Dividend Stock Advisor author and Stocks Under $10 co-author Dave Peltier joined Cramer to talk about Thursday's "Stump Cramer" stocks. Peltier said RELM Wireless' ( RWC) stock had tripled since July, and although it is not that expensive at 20 times earnings, the company has had no clear pattern growth for the last 10 years. Cramer said he is "not too crazy about that," and with the stock tripling, "I feel like we've missed it." Commenting on MTS Systems ( MTSC), Peltier said that even though the company had a miss last week when it reported fourth quarter results and its stock dropped 20% in one day, the miss was due to supplier shipment delays. MTS sells testing and simulation products to companies like Boeing ( BA), and he likes the stock, believing it will rebound due to the strong aerospace market. Cramer said he always recommends waiting one quarter after a miss before purchasing a stock, but he "like s who they sell into."
Cramer, UnstumpedRealMoney.com contributor,
Peltier said Pacific Ethanol ( PEIX) has no earnings but is planning to build five methanol production plants in California. It's a volatile stock, he said, but with Bill Gates' recently purchasing a 30% stake in the company, the stock is "very attractive." A less speculative play on methanol, Peltier said, would be MGP Ingredients ( MGPI). MGP has consistently made money and pays a dividend, he said. Peltier said CEVA ( CEVA), an intellectual property play on circuitry and software inside cell phones, is a "dog." The company was spun off from DSP Group ( DSPG) about three years ago. But, the problem with intellectual property companies is that they seem to always be in court trying to get their money, he said. A better way to play that market would be Skyworks Solutions ( SWKS), said Peltier. Finally, Aames Investment ( AIC) may have a 22% yield, but the stock has dropped 40% since the summer, said Peltier. The mortgage REIT is facing a flat yield curve, which makes it hard to make money. The 22% dividend is "not for real," said Peltier.
Fixing a 401kCommenting on funds in listeners' 401ks, Cramer said sector funds are not the best way to be diversified. However, he would not quibble with holding up to 10% of one's retirement portfolio in the ( FSENX) Fidelity Select Energy fund. Similarly, Cramer recommends holding 10% of retirement assets in overseas investments. The ( TREMX) T. Rowe Price Emerging Europe & Mediterranean Fund , which holds a sizable portion of its investments in Turkey, "would be a terrific proxy" for a "diversified group of stocks from a very hot area."
Cramer's Callers and EmailersIn response to a question about Finish Line ( FINL), Cramer said he would buy the stock "right here." Finish Line traded at $18.49 late Friday. Cramer reiterated his long-term bullish stance on Sears Holdings ( SHLD). He does not believe Sears will have a good Christmas. But, he is sticking buy his belief controlling shareholder Eddie Lampert and CEO Aylwin Lewis will find a way to turn Sears around and bring out value in the company.
Commenting on Allscripts Healthcare Solutions ( MDRX), Cramer said the stock is seeing aggressive profit taking because it has gone up so much the past several years. But, he believes saving money in healthcare is one of the most important growth areas, and he is sticking with the stock. Of UnitedHealth Group ( UNH), Cramer said the stock is "probably due for a pullback," and he would wait for one before buying more. Responding to a question about Otter Tail ( OTTR), Cramer said Otter Tail is good, but he likes NorthWestern ( NWEC), a stock he recommended on Thursday's "Mad Money," better. Cramer believes NorthWestern will be acquired at $35. NorthWestern traded at $31.60 Friday afternoon.
Lightning RoundBullish Cramer was bullish on United Parcel Service ( UPS), Capstone Turbine ( CPST), Quidel ( QDEL), OraSure Technologies ( OSUR), Korea Electric Power ( KEP), Advanced Micro Devices ( AMD), NitroMed ( NTMD), Morgan Stanley ( MWD), General Electric ( GE) and Goldman Sachs ( GS). Bearish Cramer was bearish on TNT ( TP), InterOil ( IOC), DepoMed ( DEPO), Regis ( RGS), Tyco ( TYC), General Dynamics ( GD) and Whirlpool ( WHR). Limited time -- now listen to Jim's radio show FREE. Click here to listen to the show.