He thinks it will be a great deal and if the Chinese e-commerce company prices its IPO at $70, which Cramer thinks is a possibility, then it could pop up to $75. If that happens, then he thinks Yahoo! (YHOO) remains undervalued at $43.
One question asks how to play Yahoo! and Baidu (BIDU) in light of the Alibaba IPO, and Cramer says Baidu is a great company all on its own. Investors could sell Baidu stock in order to buy Alibaba, which Cramer says would be a great buying opportunity because Baidu has a lot of strength, as does Vipshop (VIPS) .
As for Yahoo!, Cramer points out the enterprise value of zero, which he says is a mistake. This is why he says Yahoo! remains a good situation.
Next, Cramer lists the stocks he fears would be sold off by investors in order to raise money for the Alibaba IPO. These include Netflix (NFLX) , Tesla (TSLA) , Celgene (CELG) , Gilead (GILD) , Apple (AAPL) and Google (GOOGL) . Cramer notes Apple should have gone up much more on news of the record number of iPhone pre-orders.
Cramer suggests investors wait to hear what the Federal Reserve says this week and wait until the Alibaba IPO price is confirmed. But he also says investors must recognize that some people will flip and come back to these aforementioned stocks if they decline. He says all these stocks are quality and adds that Celgene is his favorite of the biotech group. He notes Gilead is a natural place to sell.
The next question asks about energy stocks, to which Cramer says investors need both yield and growth. He likes Royal Dutch Shell (RDS.A) , which provides some cushion. He also tells investors to remember interest rates matter to oil companies and he thinks oil stocks are rolling over. Cramer also likes Kinder Morgan (KMI) for pipeline. Both companies have approximately the same yield, which he likes.
The final question asks about a realistic stock price for Bank of America (BAC) . Cramer says if rates continue to climb to 2.7%, then the stock could hit $17.50. He notes Bank of America has a lot of shares, so it cannot surge to $20, but he likes the stock very much.
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