Cramer Picks - the Pumps and Pullbacks

[madrose1]

Recap , Dec 8th... Salesforce.com (CRM) is the "Pick of the Week."


CRM makes customer relationship software competing with Microsoft (MSFT), SAP (SAP), and Oracle (ORCL).
CRM can deliver its software over the Internet. They controlled just 3.2% of a $3.5 Billion market in 2004. The CRM type software market is growing faster than the traditional market but it is worth a look.
posted by 2pay at 9:25 PM Comment (0) | Trackback (0)

Drink Up
Water may cover 70% of the earth but it cost money to make it potable, and to for desalinization. It is more scarce and precious than diamonds according to Cramer. Water consumption has grown at twice the rate of population growth. Cramer owns Aqua America (WTR). PowerShares Water Resources (PHO) is an ETF and a great way to play water. The are composed of 64% small-cap stocks including large companies Suez (SZE) and Veolia Environment (VE). PHO is a basket of stocks trading as one and Cramer says don't pay up for PHO.
SZE would be an international play on water.
Walter Industries' (WLT) is a company to look at for a water play also.
posted by 2pay at 9:16 PM Comment (0) | Trackback (0)

Radio Recap
Stocks taking a breather in the market right now causing "profit taking fever," and this is healthy according to Cramer. Cramer said, "When everyone knows things are good there tends to be a bit of a selloff. Investors want to lock in profits." Stocks talked about briefly: Qualcomm (QCOM) - stock is down despite raising its first-quarter outlook, Texas Insturments (TXN) - stock is down despite "great news"with their midquarter update, National Semiconductor (NSM) - stock is down despite rising gross margins and "terrific bookings." Anyone owning these stocks will be rewarded if they can weather the storm.

Cramer believes that it will last until the Federal Reserve meets and probably raises rates next week. As he always says, "buy stocks on day 3 or 4 of a selloff."
Wal-mart (WMT) is turning things around due to the hiring of a former Target (TGT) exec. WMT is making stores "exciting" again and this has caused a 5 year turn in Cramers outlook. After turning bullish in Sept. the stock has sunk from $50 to $43, then climbed back to $47. His restrictions with the charitable trust doesn't allow him to buy, although can't get in where he likes this stock.
"Stump Cramer:"

Didn't know: Delphax Technologies (DLPX), Imperial Industries (IPII), BSD Medical (BSM), and Cadence Resources (CDNR).
Knew: China Techfaith Wireless Communication Technology (CNTF), and Superior Well Services (SWSI).
Callers:

First Marblehead (FMD) - 2006 looks bright for this company. Cramer said "One of the most attractive investment opportunities of 2006" and "skeptics are way, way too negative."
Fidelity Contrafund (FCNTX) - Cramer is a fan of FCNTX.
Lucent (LU) - Stock won't do much for the next couple quarters, but Cramer still believes that the stock still will go up.
Viacom (VIA) - Buy before it splits.
Sulphco (SUF) - Doesn't belong in an IRA or 401(k). "Highly speculative" with poor management.
Chevron (CVX) - A "gigantic buyback" and expansion of drilling activities will benefit Nabors Industries (NBR), Schlumberger (SLB), Halliburton (HAL), and Baker Hughes (BHI)

In Closing
Intel (INTC) - quarterly update was unimpressive.
Electronic Arts (ERTS) - Acquisition of Jamdat Mobile (JMDT) was not to Cramers liking.
Chesapeake Energy (CHK) - Cramer is now blessing this company.
posted by 2pay at 9:49 PM Comment (0) | Trackback (0)

All that Sparkles
Americans love the bling bling. No diamonds hit up Charles & Colvard (CTHR). CTHR is a synthetic moissanite jewelry creater that is carried in more than 700 J.C. Penny (JCP) stores and is being tested in Zale (ZLC) and Helzberg, a Berkshire Hathaway (BRK-A) store.
Try Anglo American (AAUK) for the high-end diamond market. AAUK owns 40% of De Beers.
CTHR has triple didget growth sinc the third quarter of 2004 with a earnings expected to be up 274% in 2005.
Tiffany (TIF) - Cramer upgraded right here, right now.
posted by 2pay at 9:44 PM Comment (0) | Trackback (0)

Man of Steel
Telephone interview with CEO Daniel DiMicco of steelmaker Nucor (NUE). Cramer asked if steel imports were a threat to pricing. DiMicco admitted "There is always a risk in any business." Cramer buttered him up when talking about how NUE boosted dividends. They talked briefly about rumors that NUE would aquire Dofasco a Canadian steel producer. DiMicco said, "We have a very disciplined acquisition stratgy," and "We will not overpay." Cramer closed by saying the recent downgrade by J.P. Morgan was "arbitrary and wrong. This stock will go higher."