Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Tuesday, September 12, 2006

Cramer's MAD MONEY Recap (Sept. 12, 2006)

Cramer went out bad mouthing poor CEO's to see when if they could make money. This is after BMY fired Dolan. On August 17, Cramer said his Hall of Shame also included Andrea Young of Avon (AVP), Ronald Zarella of Bausch & Lomb (BOL), Cherkasky of Marsh & McClennan (MMC) and Robert Nardelli of Home Depot (HD).

Cramer thinks BMY is goiing to $26.00 and he thinks these others could be bought in hopes the CEO's get the axe, too. Oddly, these were all up pretty big today.

In a call-in he was asked about DELL, which Cramer noted as Honorable Mention in his Rogue's Gallery in August. Cramer said that Dell's reaffirmation of Rollins today may just be a predecessor to a firing.he was asked about Ford (F). Cramer said that was good for Ford to step aside and that Mulally is a great choice to turnaround Ford. Cramer says it is not too late to get in Ford and that could still go to $10.00 to $12.00. He even said that the company rallying on the bad earnings warning was your buy signal.

Cramer was also value surfing to find bargains.

Cramer discussed Google (GOOG) as a dirt cheap stock. Cramer say it is very cheap. He said RBC called it cheap yesterday. At 31-times earnings he says it is cheap and well below its growth rate. He said the Calendar is why this is cheap because of when it reports earnings. Cramer says we should no longer use the 2006 earnings estimates because we are afterthe first 8 months of the year. In September the big money managers start looking at 2006 earnings estimates for value stocks. He said money managers think it will earnin $12.50 per share next year and has 34% growth. Cramer thinks GOOG deserves a 40 P/E multiple. He thinks GOOG is going to $500.00 now. He says use limits and be careful. GOOG just popped a half of a percentage on Cramer's note, and that is after it closed up 2% at $391.90 today.

In a call-in on Apple (APPL), Cramer said it is going higher and is a forward looking company. He likes 2007 earnings for AAPL.

Jon C. Ogg
September 12, 2006
 Subscribe

Powered by Blogger