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Friday, September 22, 2006

Cramer's MAD MONEY Recap (Sept. 22, 2006)

Cramer on CNBC's MAD MONEY discussed flat panels, profit taking, and a set up for next week.

Cramer first went over LCD's and flat panels. Cramer said LCD TV's has a leveraged stock play that hasn't moved: Taiwanese-based AU Optronics (AUO). He said they recovered from a huge inventory glut and big screen TV's are back. Cramer said this will be a good big screen TV Christmas. By 2010 he said LCD TV's should have half of the HDTD market. Cramer says AUO is ok to get in; it closed at $14.39, in the middle of the $10.29-$17.07 52-week trading range. Trades at 16 times earnings, and at 11 times next year's earnings and has good long-term growth rate of 30%. he said stocks don't stay cheap like this for long, and he thinks it won't trade at the deep discount for long. he said that AUO essentially pays nothing in Taxes. Cramer said he thinks it is a $21 stock. he said buy it mid-day Monday after the gap-up and after it comes back in a bit. After-hours it was at $14.66, up almost 2%.

In a call-in on Microtune (TUNE), Cramer said he doesn't think TUNE gets creamed in the options review. In another call, he was asked about QCOM in displays and Cramer said to be careful because the bears have enough power to push it down to $35.00.

Cramer said Ethanol isn't just done; he said Ethanol is done for Good! He said it isn't broken, it is dead. He said sell ethanol on VerSun (VSE) IPO. VeraSun (VSE) fell from $28 to $16 since its IPO. Aventine came out at $39 and now under $24. Hawkeye Holdings has delayed its IPO. Archer Daniels (ADM) didn't trade on this, but Cramer said that is only 1 part of ADM. Pacific Ethanol (PEIX) fell 1.3% on this. Cramer said to stay out of these and do not try to go bottom fishing and do not get into energy companies. Even if oil goes back up you should avoid ethanol stocks.

In a call-in, Cramer said he wouldn't go into other alternative energy areas because if oil keeps falling the stocks will too so he wouldn't recommend any of the ALT ENERGY names.

OK, have a great weekend.

Jon C. Ogg
September 22, 2006

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