The Russell 2000 index is the key to this year's trades, he told viewers of his "Mad Money" TV show Thursday. When a company gets added to the index, the biggest advantage is that the stock gets a lot more attention and promotion, Cramer said. Every year, the Russell indexes (not indices), he explained, need to be rebalanced because of certain stipulations the indexes have. The annual rebalancing of the Russell 2000 index, which is made up of 2000 small-cap stocks, will take place in June this year. To be eligible for the Russell, which makes up its own rules, a stock must have a market capitalization of $233 million to $3 billion, trade on a major exchange and trade at more than $1, among other conditions, Cramer said. On June 22, the Russell 2000 will be reconstituted, and all companies that don't meet the criteria will be "purged and replaced," Cramer said. "The additions and deletions are based on stock prices as of today's close."
Three for AllCramer said he has three favorite stocks that he believes are likely to get added to the Russell 2000. Even if the stocks aren't added to the index, Cramer likes these plays. But remember, Cramer reminded viewers, to not trade after hours, to use limit orders and to buy these picks incrementally. The first of Cramer's Russell 2000 stocks is Coleman Cable ( CCIX), a company that makes electrical wire and cable, he said. Coleman is now big enough to be included in the index and only has one analyst covering it, Cramer said. However, this should change if it joins the Russell 2000. He said he could even see a company such as General Cable ( BGC) buying it.
Sell BlockIn his "Sell Block" segment, Cramer said that Charter Communications ( CHTR) and Apple ( AAPL) are each up 41% since he recommended them. Starting with Charter, Cramer said it's time to take most or all of this stock off the table. Though Charter was always more expensive than Comcast ( CMCSA), even though Comcast was the better company, Cramer said he liked it because it was refinancing its debt at better levels.
Lightning RoundCramer was bullish on Global Sources ( GSOL), Duke Energy ( DUK), Exelon ( EXC), Consolidated Edison ( ED), Level 3 Communications ( LVLT), Briggs & Stratton ( BGG), AAR ( AIR), BE Aerospace ( BEAV), Dollar Tree Stores ( DLTR), Bankrate ( RATE), Nucor ( NUE) and ValueClick ( VCLK). Cramer was bearish on Archer Daniels Midland ( ADM), IDT ( IDT), FactSet Research Systems ( FDS) and Applebee's ( APPB). For more of Cramer's insights during the Lightning Round,
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