One-Hit Wonder"When does being in the mob pay off?" Cramer asked listeners. "When you're in a fictional one," he said, referring to the television return this Sunday of The Sopranos. When he sees all the hype surrounding the season premier, he is reminded of the lesson of the minnow and the whale. While some may be tempted to buy Time Warner ( TWX), the parent company of HBO, Cramer said that company is too big to be moved by a hit television show. Time Warner "has so many moving parts" that even if a million new people subscribe to HBO to see The Sopranos, "it won't be enough to move the needle," he said. So, go after the minnow, Cramer said, referring to Lions Gate ( LGF), the much smaller play on hit entertainment. Its movie, Crash, won the Oscar for best movie, and the stock is only at $9 and change, he said. He called it the independent company with the cache in growth. One hit won't move a stock like Time Warner, but it will boost a stock like Lions Gate, which is worth less than a billion dollars, he said. Speaking of movies, Cramer also said that 8% fewer people went to the movies worldwide in 2005, choosing instead to wait for the DVD. He said this will mean money for movies-on-demand and for companies like Netflix ( NFLX). Netflix's stock is "a little expensive," but it's a good buy on a pullback, he said.
Getting Around GoldmanCramer told a caller that Goldman Sachs ( GS) is the premier investment banking house in the country, but that doesn't always mean that it's the premier stock. Goldman is up 27% year to date, while the stock market is only up roughly 3% in the same period, he said, proof that the company has been a red-hot stock in a tepid market. But next week Goldman Sachs reports earnings, and the company has a history of running up weeks before the quarter is announced and then selling off hard when the quarter comes out, Cramer warned, adding that he thinks it will be more of the same this time around. Even though the company sells at a fraction of its growth rate and he believes it is the highest-quality company in industry, he wouldn't want to be in it ahead of its earnings announcement. Cramer also said that he is more cautious about Google ( GOOG), even though he thinks the company is solid. He told a caller that the numbers are sound and that he believes the company will make its earnings. But the disturbing trend for him is the fact that every time the two men who run the company make a move, it disappoints the market. Larry Page and Sergey Brin are the faces of Google and the founders, Cramer said, but Eric Schmidt and George Reyes run the company. He said that CEO Schmidt has terrible bloodlines, coming from Novell ( NOVL) and Sun Microsystems ( SUNW), which he believes are among the worst software and hardware companies around. He also said he's not impressed with Reyes as a chief financial officer. As long as they are not able to manage their stock, Google will not do well as a stock -- even if it does well as a company, said Cramer. Instead, he told the caller that he likes Yahoo! ( YHOO), which he owns for Action Alerts PLUS. Cramer said that Yahoo! is cheaper and better run, and that its executives understand Wall Street. Better yet, he said, the stock is just $1 from its 52-week low. Cramer told a final caller who was worried about Halliburton ( HAL) and Microsoft ( MSFT) that he believes in both companies and that he owns both for Action Alerts PLUS. He said now that Halliburton has pulled back 14 points he thinks it's time to start looking.