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Wednesday, November 01, 2006

Cramer's MAD MONEY Recap (Nov. 1, 2006): Buy Time Warner (TWX) and Lundin Mining (LMC)

Cramer is very positive on Lunding Mining (LMC) and Time Warner (TWX), and says Guess? Inc (GES) is still going higher.....


Cramer then said CABLE is hot. Investors like Comcast (CMCSA) but it has risen sharply. Time Warner (TWX) is the one left behind that they can still buy into and one they haven't entirely missed the boat on. The Triple Play is really helping and now since summer has started surprising us. He said they are willing to drop 18 magazines. Cramer realizes that TWX is in a huge turnaround, but the work by Dick Parsons is yielding results. Cramer said Parsons is performing a miracle. TWX was strong across the board according to Cramer. He thought broadband was great, but Cramer said that AOL is a show stealer. Cramer said he almost wants a mom-back on it.

Then Cramer brought on Dick Parsons on a video interview. Parsons said he is pleased others believe in the company again.

Parsons went over his same 3 points today from the conference call this morning: 1) the turnaround in cable and the Triple Play. 2) AOL's new strategy from pay to advertising. 3) People are watching balance sheet and buybacks.

Parsons also said he is still in discussions with Icahn and the company is still looking at value. Parsons said in response of a spin-off ultimately of TIME: he wouldn't say Never, but they are focusing on strong areas. They are moving their content to digital as well. Parsons said the publishing unit will surprise people like the cable unit did. Cramer then asked about AOL. Parsons said Bukus and Miller deserve credit for the guts to move AOL to an ad service. Cramer said he would have thought it would be 2 years before seeing results, but it is already paying off. On film, Parsons told Cramer that film is still strong. He alluded to the difficult comparison to a strong 2005.

Cramer finished by saying that TWX is now where CMCSA was when it was $34 and going higher after the initial crowd thought it had run up all the way. Cramer said TWX is a BHUY Here and now and any pullbacks can be bought. TWX closed down 1.2% at $19.77 on the day on over 53 million shares, but TWX traded up 1% back to $19.98 after Cramer interviewed Parsons on MAD MONEY.


Cramer said you need to BUY Euro Zinc Mining. It has now merged with Lundin Mining (LMC) and that is the new ticker. Cramer thinks this is the best way to play the hottest minerals: Zinc and Copper. Cramer thinsk the genius in the call is because the combo of zinc and copper is perfect, and even the NEWCO company could be a takeover target. The mines have long lives to them, and bigger mining companies should look at them to get more mining properties. Cramer said these are in stable countries and that is better for large companies in emerging countries to buy into stable countries. Cramer is convinced that Zinc itself could go up 70% and go to parity with copper because of lack of supply and strong demand. China is now importing zinc and not exporting any, and that leads to great results. Cramer said he wants to buy it for his charitable trust, but he can't because he just talked about it. He wants to do a "Mom-Back!" Buy on it.


Cramer said GES is up after-hours and after beating earnings. He said hold on because it can still go higher.

Jon C. Ogg
November 1, 2006

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