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Wednesday, August 23, 2006

Cramer's MAD MONEY Recap (August 23, 2006)

Stock Tickers: TWX, CSCO, IBM, JNPR, CBS, VIA, NWS, MSFT

Cramer first discussed Time Warner (TWX) break-up value play, but he said it is a Sell until the company follows this strategy. Cramer says he has the formula to make a $16+ stock go to $26. He thinks Time Warner cable unit is worth $11.00 and they should focus on just that and spin-off everything else. He said the half of Adelphia will take them from 9+ million homes to 13+ million homes. Cramer said AOL is not worth anything to him personally, but maybe it is worth $2.00 per share or $8 Billion and it should be sold to Microsoft (MSFT) or even be given to them. Filmed entertainment segment is worth a lot to an outside studio, like Viacom's (VIA) Paramount; he said their film business has the lowest margins and it is worth another $3.00. Cramer then said TWX should sell its HBO unit to Viacom andf that it is worth $4.00 per share. The basic cable networks unit that has Turner, CNN news, and others is worth $6.00 and they should sell it to CBS (CBS). Cramer said the Time magazine unit should be turned into a standalone pure-play magazine charity.

Cramer said he is still positive on NewsCorp (NWS) and also on CBS (CBS).

Cramer then discussed a hated tech stock that he feels could make you money. Cramer said Cisco (CSCO) is about to break-out as it went from $17 to $21 and could go to $25 before it takes a real breather. He thinks they have gotten their act together, and he thinks even now after the rally you need to buy the stock. Cisco is now selling to phone and cable companies while these companies all ramp up competition against each other and he thinks this is like being the Switzerland of the tech sector that gets to deal with both sides. He said it is the ultimate broadband play and that there are only really 50 million broadband lines in the US that could triple in size before the broadband line growth is done. He said the Scientific Atlanta acquisition was a great buy. He says CSCO is a Triple Buy.

In a call-in Cramer said he thinks IBM (IBM) is no competition for Cisco and the ISSX acquisition won't help IBM compete against Cisco. Cramer panned Juniper (JNPR) saying that they are finished and should be sold still at $13.00. He previously thought JNPR would be a takeover target, but now the fundamentals are even bad.

Cisco (CSCO) closed at $21.05, down $0.19 on the day, but traded at $21.27 after he gace it the Triple Buy.

Cramer still has his LIGHTNING ROUND and the remaining features not yet finished.

Have good night and tune in tomorrow.

Jon C. Ogg
August 23, 2006
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