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Opening Segment Recap below  - for:  Wednesday, 03/07/07

 

posted 03/07/07:  8:04 pm ET

 

NOTE:  Opening Segment comments shown below:   ▼
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PRO/CON STOCK CLOSING
PRICE
THAT
DAY
OPENING
PRICE
NEXT
DAY
JIM CRAMER'S COMMENTS PRICE
TARGET

 
 
 

 

SEE
SPECIFIC
STOCK
PICKS
BELOW:
na

na

'Taking The High Road'

na

Everyday, the market generates a list of not just survivors, but thrivers!  It's called the new high list (great tool!)...(you can also see the new low list here)...

I love the validation of the new high list.  Stocks can't get there out of a beauty contest... No, the new high list generates stocks that are proven winners, with real money behind them...


 


We go to the new high list for safety and for upside...

Any stock on the new high list now is one that can ride out the next storm; it's one that you need to check out and, perhaps, get on board.

So, what do we see on the list now?...

Two big sectors sitting on that pretty new high list...

The pharmacy benefit managers... these are the companies that save employers costs on drugs... and, surprises of surprises, tire companies.

These sectors will perform, even after a truly horrific onslaught like last week's house of pain.

But we can do better than the two sectors...

I want to give you the best of breed in these sectors - the best two stocks from those two sectors on the list...

My picks are
MHS and, amazingly, GT.

I've scrubbed these companies clean.  And you can relax.  Neither one has anything to do with mortgage. 

.  .  .  .  .

The bottom line!:    Prep for the next selloff.  Go for the bull markets as defined by the new high in pharmacy benefit managers and tires.  MHS and GT - they are the stud steers for both.  I'd buy some now, and then I'd hope for a pullback to buy more. 

 

MHS

AFTER-
HOURS
PRICE
AFTER
TALK:
67.76

 

68.38

69.20 See 'Taking The High Road' comments above for:
MHS

 

GT

AFTER-
HOURS
PRICE
AFTER
TALK:
28.48



28.81
29.11 See 'Taking The High Road' comments above for:
GT
       
         
         


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PRO/CON STOCK CLOSING
PRICE
THAT
DAY
OPENING
PRICE
NEXT
DAY
JIM CRAMER'S COMMENTS PRICE
TARGET

 
 

 

 

FSLR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


AFTER-
HOURS
PRICE
AFTER
TALK:

 

47.62












 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

50.22

49.73
'Picking Through The Rubble:'
'Solar Flair'

 


Today, I want to tell you about FSLR - far and away the best solar power stock out there...

This company can generate more power for less money than its competitors.

What makes FSLR a great stock to buy now, while the market's still reeling from the beating we took last week...

Okay, here's the method...

After a big selloff - or even after a small one - you want to find stocks with one special characteristic...

You want a company that's just reported blowout, better-than-expected numbers.

You see, no matter how much panic we have on the Street, a stock that just reported a great number a week ago isn't likely to disappoint anytime soon.

I regard these stocks as immunized - insulated from the downside - and they have unrealized upside.  Their great numbers aren't reflected in the price, because the selloff took them down.

Every other stock wouldn't be down if it weren't for the selloff.

The sun's going to come out tomorrow (he said, after he played the song from 'Annie'...)   FSLR fits this profile perfectly.

Even though the stock's recovered, it's still trading at $47.62.  That's down 10% off the high, and you know that is where we want to back up the truck.

You've got a chance to buy a really hot stock for less than it's worth right now.

But, why should you take the chance?

Why believe in FSLR?  What makes this one different from every other played-out solar stock?...

Why buy this, and not ESLR?...

Because FSLR isn't a hippy-dippy pipedream.  It's a real company.

They plan to offer non-subsidized solar power - everybody else needs the government - that's competitive with good old-fashioned environmentally unfriendly power by 2010.

No other solar company is trying to do that.

FSLR can generate more solar power for less money than its competitors.  It's simple economics.  That's why it's a winner.

It costs FSLR $1.40 to manufacture 1 watt of power.

While the average costs from crystalline, silicon, mojules - the kind of bad technology the competition uses - is $2.50 per watt.

What's the deal here?

FSLR doesn't use silicon - which has become prohibitively expensive - to make its solar cells.

Silicon wafers are the industry standard, while FSLR uses cadmium and tellurium.

Neither of these two elements have pricing issues.

FSLR has the lowest costs; it's got the highest margins... 40% and, best of all, the estimates are way too low.

The fuel for this stock in the future won't come from the sun.  It'll come from beating the expectations.

The consensus on the Street is that FSLR will earn 26 cents a share.  That's preposterous!  They earned 12 cents a share just in the last quarter of 2006...

They're going to blow away that estimate!... if they keep delivering the results that they have, and there's no reason to believe that FSLR - because it's best of breed - won't do it.

.  .  .  .  .

The bottom line!:    I searched through the rubble to find you a discount on a stock that just reported great numbers... I found FSLR, and I'd back up the truck on this one before it really gets going.

.  .  .  .  .

 

         
         
         
         

[ end of opening segment ]

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  = Special Mention/Conversation
 

= Lightning Round Mention
= Sudden Death lightning round stock
          picks - at end of show
= Recommended 'Mon-back...

'MON-BACK
- This is Jim Cramer's term to indicate that he would back up a figurative truck, saying "Come on back" or do a 'mon-back' and load up on the stock being mentioned.

* Indicated this stock owned by Cramer's Charitable Trust on this day.

 

 

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