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Anytime the market is up significantly, the way to make money is by being aggressive, Jim Cramer told viewers of his "Mad Money" TV show Wednesday. Because the market was "en fuego" Wednesday, Cramer said he believes that people should start making trades. In particular, Cramer advised his viewers to make a trade on Research In Motion ( RIMM). The Waterloo, Ontario-based company is involved in the design, manufacture and marketing of wireless products for the mobile-communications market. Many people may know the company best as the maker of the BlackBerry device. RIM shot up to $90 and reached its peak in March, and the stock has been down since then, Cramer said, adding that this stock is now beckoning. After two horrible quarters, the company is set to report its fiscal year 2007 first quarter on June 29, he said. Research In Motion is not an investment, but a trade because it is like a rollercoaster, Cramer emphasized. RIM has a new 8700 BlackBerry model, which is currently offered by Cingular, but in the summer, this model will be offered by Verizon ( VZ) as well. When that happens, sales will soar, Cramer said. Right now there is a lot of negativity toward RIM, and even though it is risky to bet on a stock before the end of a quarter, Cramer believes that the company will report better-than-expected earnings. Although the company has seen abrupt and extreme changes, Cramer believes that it can't go much lower. Cramer believes that when the 8700 model starts appearing in Verizon stores, the stock will bounce back. That's when it's time to sell the stock, he says.
Strong MedicineConglomerates such as General Electric ( GE) and Siemens ( SI) have been buying similar-looking medical-equipment companies, Cramer said. In the last year, there has been $60 billion in acquisitions in this space, and the reason for buying is demographics, Cramer said. America is aging rapidly, and Americans will do anything to look younger.
Because these big conglomerates are buying medical-device companies, Cramer believes that there's money to be made here. He advised viewers to start looking for the next medical-equipment play. Earlier in June, Intermagnetics General ( IMGC) merged with Philips Electronics ( PHG). In addition, Siemens acquired Diagnostic Products ( DP). Market players could have made money from both acquisitions, Cramer said. Speculating about the next takeover, Cramer offered three candidates that have potential to be taken over and are buys. First, Cramer recommended Conshohocken, Penn.-based Viasys Healthcare ( VAS), which develops medical devices, instruments, and medical and surgical products worldwide. Cramer said to focus on the company's orthopedic business and its lung business, which he called very sophisticated. Cramer believes that Viasys is a takeover target for a company that wants lung exposure. In addition, the fact that the company has cash and low debt makes it OK to speculate on it.
The next company, New Jersey-based Vital Signs ( VITL), is a great anesthetic and respiratory products maker and is sitting on a hoard of cash, Cramer said. Sirona Dental ( SIRO), the third and last company Cramer recommended, merged with Schick Technologies on Tuesday. The bottom line, said Cramer, is that big conglomerates want to make acquisitions in diagnostics companies; these three could be great takeover candidates, he said.
Am I Diversified?The first caller to play "Am I Diversified?" owned the following five stocks: Cincinnati Bell ( CBB), CBIZ ( CBIZ), BHP Billiton ( BHP), LifeCell ( LIFC) and Quantum ( DSS). Cramer said that although the caller was diversified, his portfolio was awful. He advised the caller to get rid of CBB and go into Deutsche Telekom ( DT). He also recommended getting into Johnson & Johnson ( JNJ) instead of LifeCell and Qualcomm ( QCOM), which he owns for his charitable trust,
BullishCramer was bullish on: Helmerich & Payne ( HP), Openwave Systems ( OPWV), Agilent Technologies ( A), Bank of America ( BAC), Talisman Energy ( TLM), Rite Aid ( RAD), Chesapeake Energy ( CHK), Qualcomm ( QCOM), Microchip Technology ( MCHP), Circuit City ( CC), Chevron ( CVX), Texas Instruments ( TXN), Hilton Hotels ( HLT), Frontline ( FRO), KB Home ( KBH) and Trinity ( TRN).
BearishCramer was bearish on: Eagle Materials ( EXP) U.S. Bancorp ( USB), Ford Motor ( F), Taiwan Semiconductor Manufacturing ( TSM), Toll Brothers ( TOL), Silicon Image ( SIMG), Morgans Hotel ( MHGC), Alliance Resource Partners ( ARLP) and American Railcar ( ARII). For more of Cramer's insights during the most recent Lightning Round,
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