"Let's talk about the Oscars ... people were surprised when the movie Crash beat out Brokeback Mountain for best picture," Jim Cramer told his
"RealMoney" radio show listeners Monday. But he didn't see a surprise victory. He saw a way to get rich. "Crash was made by a publicly traded company called Lions Gate ( LGF)," he said. And since its film won the Best Picture Oscar, he believes it's a buy. Even though Lions Gate is a stock that Cramer said has been an inconsistent company in a difficult business, he believes that its recent success means that it's now "bankable." "It's a buy because it's a surprise ... because people will now see Crash ... buy the Crash DVD," he said. Plus, Cramer believes that actors and actresses that haven't worked with Lionsgate will sign on now. He said that it's a $1 billion company that could be a $4 billion or $5 billion company, because that's what happens when companies win an Oscar. Right now, it's a $9 stock that no one on Wall Street cares about, making it a great time to get in. He said that there are money-making ideas all around, everywhere from the Oscars to the company down the street. He also recommended taking a look at Corning ( GLW), the maker of glass for big-screen televisions. "That's a home run," he said. ActionAlerts PLUS charitable trust.
Back in FavorCramer made his name and career making rich people richer for more than two decades, which he called "an ignoble career." So now he wants to make money for everyone else. "I learned how the game can be played for you. ...There's a system out there. It doesn't want you in. It doesn't want you to benefit," he said. That's why he has his radio and television shows, and why he still invests to make money for his
To start getting rich, he said it's important to understand how he thinks. For example, he said to take a look at his take on the housing market slowdown. Real estate isn't positive anymore, he said. "It's now a question of whether real estate's going to hurt you." For the last six years, people have put their money in the real estate boom, saying the opportunity was no longer in the stock market, he said. When you see more sellers than buyers, that's a red flag -- that's what's happening in real estate now, he said. Now that the real estate situation is changing, stocks have the "wind to their backs for the first time in six years." Cramer compared the market to a grocery store. There's the real estate aisle, the cash aisle and the gold aisle. There's also the bond aisle, which he said is for people who are already super rich. And then there's the stock aisle. "I dominate that aisle. ... all the money from the real estate aisle is coming over to my aisle," said Cramer. This will give stocks a lift by creating a "rising tide," he said. One way to play the real estate slowdown and the fact that stocks are getting more money is to take a look at Home Depot ( HD) and Lowe's ( LOW), he said. The CEO of Home Depot, Bob Nardelli, told Cramer that when real estate stops selling well, people fix up their homes. The logic is that if they're going to live in the house rather than flip it, then they'll want to make that home comfortable. If you can't afford 200 shares of a $41 stock, Cramer reminded listeners that he began his career by buying seven shares of a stock. No one cares, he said. And if they do, don't let their judgment get in the way of you making money, he added.
What's in StorageHe also believes that Public Storage ( PSA) is a story with legs. Every seven seconds, a person turns 60 years old, he said. And when people get older, they simplify their lives, maybe move into a smaller place, maybe have less space. Cramer doesn't believe that people are inclined to give away their things when they make these changes, but that they store them. So that's why he likes Public Storage, the largest self-storage warehouse. He added that the company is inexpensive compared to its peers, and that it has great growth.
A Golden OpportunityGold prices fell Monday, bringing Goldcorp ( GG) shares down with it. But a caller wanted to know if the stock was a buy. Cramer explained that there's a fundamental story behind the rally in gold that makes gold stocks attractive. Gold was down Monday because people don't worry that the world is falling apart as much as they did last week, he said. But the risk isn't all gone, so there is a real opportunity in gold, he added. Cramer said that he never bought gold before 9/11 because the U.S. was king. He didn't think that at any given moment he would wake up and everything would be different, that the world has gone nuts. "But that's the world we live in now," he said. "We are in a changed world. We are in a world where things go haywire more regularly than almost anything else we can bank on," said Cramer. He changed his strategy after 9/11 and bought gold stocks, not the metal itself, because it's too expensive. The stock we want to focus on is Goldcorp, Cramer said, because the fundamental story supports the purchase of gold companies and because he believes it's the best company in terms of costs.
He primarily looks at how much it costs a company to get gold out of the ground and how much they sell it for, and by that measure, he said, Goldcorp is the cheapest producer in the world. "Pay no attention to the panic," he said, adding that the stock's down day is the market throwing a sale. Another caller asked Cramer why he backed away from Nabors ( NBR) in a recent article he posted on RealMoney. Cramer said it was because fighting falling energy prices has become too hard, so he's backing away. But Cramer still likes oil very much, and said that if you have to own a drilling company, Nabors could be the play. The company's specialty is to drill where there are hazards, he said, calling Nabors the "driller of last resort." Cramer owns Halliburton ( HAL) for his charitable trust, and he said it's because the company is a big engineering and construction play as well as an oil pick.