Cramer Picks - the Pumps and Pullbacks

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New Mad Money : GLW, CMI, GRMN, NGPS, SIRF, FOXH, LLY, MERGE, BEN

Cramer was positive on shares of Corning (GLW) last night on his show for its diesel emission filtration business. Cramer believes that the products used to help reduce diesel emissions will be a billion dollar market by 2008 as new and tougher diesel emission standards go into effect in 2007. Responding to a question, Cramer said that he likes Cummins (CMI) as a play on this year’s diesel truck replacement cycle.


Cramer was also positive on shares of SiRF Technology (SIRF) as the company makes the chips for Garmin's (GRMN) GPS systems. Responding to a question on NovAtel (NGPS), Cramer said that this Holiday looks like a "GPS Christmas" and he believes that NovAtel and Garmin will work but his favorite is SiRF Technology. Herb Greenberg joined Cramer on his show last night to talk about FoxHollow Technologies (FOXH), Eli Lilly (LLY) and Merge Technologies (MRGE). Greenberg has raised a red flag on FoxHollow Tech after the CEO announced his sudden retirement. Greenberg said that the CEO "loved the company" and he believes there is more to the story.

Greenberg also commented on Eli Lilly and said the company's increased 2006 guidance was based on lower growth in R&D spending, a lower tax rate and a stock buyback. Greenberg said that Eli Lilly is counting on its Cymbalta drug, which he sees as a "stalled product." Greenberg was also cautious on Merge Technologies after the company reported a better than expected quarter and raised guidance, he is cautious as 39% of the company's sales came from one customer. Cramer agreed with Greenberg's caution on all three stocks.

Cramer was also bullish on shares of Franklin Resources (BEN) as the company could repatriate $2B next year, which would allow the company to make acquisitions. Cramer did say that he would wait for a pullback before buying shares as they have had a nice run. :