NEW YORK ( TheStreet) -- "If you're bullish on America, you should be bullish on Bank of America," Jim Cramer told the viewers of his "Mad Money" TV show Thursday, as he outlined 10 reasons why investors should no longer be scared of this once loathed and reviled bank. Cramer said while the media still loves to attack Bank of America ( BAC), a stock which he owns for his charitable trust,
10. Mortgage put-back exposure is no longer a risk. Cramer said with Bank of America resolving issues regarding Fannie Mae ( FNM) and Freddie Mac ( FRE), a huge weight has been lifted.
Analyst PowerWhile investors can't predict when an analyst is going to recommend a stock, Cramer said as a group, analysts can be very predictable. He said it's common practice for firms to initiate coverage with a buy on companies they bring public, after the initial quiet period has ended. Consider General Motors ( GM), which is up 12% since multiple analysts initiated coverage between Dec. 28 and Jan. 3, 30 days after its IPO. Cramer said if a huge deal like GM can move 12%, imagine what smaller deals are capable of. That's partially why Cramer recommended First Republic Bank ( FRC), a stock that came public to little fanfare on Dec. 8. He said this "rich-man's bank," which caters only to high income households in San Francisco, went public at $25.50 a share and has done little since. But that may change, he said, as the analysts gear up for their initial assessments. Even without the analyst bump, Cramer said he still likes First Republic. He said the bank is a conservative lender that's had the same management team over the past three years. The bank had few loan losses and has been taking market share amongst its high net worth clientele. Trading at two times book value, Cramer said First Republic might seem expensive, but compared to other banks in its niche, like Bank of New York ( BK) and State Street ( STT), First Republic is actually trading at a discount. Cramer said he wouldn't chase shares of First Republic. If the stock runs higher on upgrades before getting in, he'd take a pass.
Amazon's White Christmas"If you think this year's white Christmas was too white, buy some Amazon," Cramer told viewers, as he re-recommended Amazon.com ( AMZN), a member of his FADS CAN growth stock portfolio. Cramer said that the inclement weather in some parts of the U.S. leading up to the holidays are clearing hurting the earnings of brick and mortar retailers, like Kohl's ( KSS) and Target ( TGT), but should be a boon for the online-only Amazon. "Where did all those lost retail sales go," asked Cramer? He's betting online and into gift cards, which will likely be redeemed this quarter. Shares of Amazon are up 40% since Cramer recommended it on Nov. 23, 2009, and he's betting it will head still higher. Amazon has a 26% long-term growth rate, a low cost of inventory, huge international opportunities and practically invented the eBook category with its Kindle reader.