Friday's show was "not about stocks, but about strategy," Jim Cramer told viewers of his "Mad Money" TV show Friday. He highlighted three stocks for which he's been waiting on a pullback so that they'd be cheap enough to buy, "stocks we've been waiting for a pullback on to do a 'mon back.*" With the "big bad employment number out of the way," everyone is looking to buy stocks because it's like an "all-clear siren" has been sounded, he said; the market has been miserable as traders waited to see how the February payroll report would play out. Now everyone wants stocks that were put on sale when the market was getting crushed and everything got cheap, but Cramer said that it's essential to buy only the best stocks in order to make a lot of money when the market goes higher. Plus, since next week is options expiration week and the March expiration has a history of going higher, he believes money is sure to be made. But to trade like a pro, you need to know what's been marked down because it's bad and what fell because it was crushed by bad sentiment. Cramer said that a winner is a company that reported a great quarter, whose stock went up and then was brought down because the market turned down.
1. Martek BiosciencesMartek Biosciences ( MATK), is one such company, he said, even though he has earlier been bearish on the name. True, the company has been plagued by inconsistent performance, Cramer said, but this time he believes things are different. The company's last quarter was excellent and, he said, it could deliver many more good quarters in the future. The company is a pioneer in the development of micro algae, which is added to foods to make them more healthful, he said, and it just got a contract to add its product to infant formula for Wal-Mart ( WMT). While it's not a sure thing, he believes the company could also work with companies including Wyeth ( WYE), Nestle and Abbott ( ABT).
2. FinisarCramer said that Finisar ( FNSR) is another stock ready to bounce now that the market has turned higher. The company is part of the fiber optic subsystems and testing business that includes JDSU ( JDSU) and it just reported a "monster quarter." The stock spiked from near $2.50 to close to $5, Cramer said, but this doesn't mean that we've missed out. The company is in a sector that is in bull market mode for the first time in years, he said, and while the recent run higher might look huge, it looks insignificant given the fact that the stock tanked with the tech bust and has been dead in the water for years until this week. Finisar has room to go a lot higher from here, he said, and now a pullback is upon us. The stock has come down from $4.75 to close Friday at $4.27, he said, and it's time to start buying here. Don't buy all your position, he said, so if it goes down a little more on Tuesday you can back up the truck and load up. The said the stock could "do a little backing and filling" but then he said it could fly.
3. QualcommIn his hunt for best-of-breed "rebound stocks" that are a real bargains, Cramer also found Qualcom ( QCOM), which he owns for his
Viewer QuestionsA viewer wanted to know why said Broadcom ( BRCM) is getting hammered despite the fact that it looks like a good story. Cramer said that all the expensive stocks have gotten hit by profit-taking because this is not a market that favors high multiples. We've seen Google ( GOOG), Broadcom and Marvell ( MRVL) come down as people ring the register, even if the fundamentals are good, he said. Cramer believes that Broadcom is still a good stock but warned that the viewer may have to "take a little more pain." Cramer said that it would be foolish to think that Blockbuster ( BBI) is a buy under any circumstances, even though a viewer pointed out that the company has brought back late fees and increased its profit. And even though a viewer pointed out that Middleby's ( MIDD) fundamentals look shaky to him, Cramer said that Middleby -- a company he featured on
Lightning RoundCramer was bullish on Motorola ( MOT), Pan American Silver ( PAAS), Corning ( GLW), St. Jude Medical ( STJ), UnitedHealth Group ( UNH), Genentech ( DNA), Rackable Systems ( RACK), DuPont ( DD), Taiwan Semiconductor ( TSM), Micron Technology ( MU)and Broadcom ( BRCM). Cramer was bearish on: JetBlue Airways ( JBLU), New Century Financial ( NEW), Silver Wheaton ( SLW), Lucent ( LU), Nuance Communications ( NUAN), Texas Regional Bancshares ( TRBS), Lyondell Chemical ( LYO), PDL BioPharma ( PDLI)and Microsemi ( MSCC). For more of Cramer's insights during the most recent Lightning Round,
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