What should you do?...
What should you sell?...
What should you hold
onto?... What should
you buy?...
. . . .
.
All right, let's start with the value
stocks...
Goldman Sachs (GS*),
Altria (MO*),
and
Halliburton (HAL)...
Goldman Sachs (GS*)
is still the best stock, but it's a
crummy neighborhood. It's not
going to get better. Although I
will tell you that the Federal Reserve
will cut over time. So, by the end
of the year, the environment for
financials will probably look better...
But, I've got to tell you... 2008 is the
year that even our clueless Fed will
bail us out... But, not quick
enough for most.
Stick with GS*... Don't expect a lot of
appreciation... I do believe it deserves
to trade at $300 but, as we know from
the movie Unforgiven, deserves has
nothing to do with it...
. . . .
.
Now,
Altria (MO*)
is probably my absolute favorite of all
these stocks for 2008... I expect
it to go much higher. It's going
to split up into international,
domestic, and then start the mother of
all buybacks... after being pent up for
multiple years... It wasn't
allowed to buy. They had a lot of
cash... it was in reserve, waiting for
the buyback. The buyback's going
to kick in next year. You've got
to be there...
. . . .
.
Halliburton (HAL)
should work again... but it's more of a
natural gas play, and I'd rather play
the theme of natural gas with a stock
that I'm going to be naming tomorrow...
on tomorrow's show...
. . . .
.
Then we've got the three growth names...
Cisco
(CSCO),
Apple Inc. (AAPL)
and the
NYSE (NYX*)...
CSCO?... I'm worn out by it. You
can only fight the tape for so long.
I think CSCO is just going to be a
marginal performer. I like John
Chambers but, look, what's the point,
okay?...
I prefer
The Four Horsemen of Tech, Apple Inc. (AAPL), Research
In Motion (RIMM), Google Inc. (GOOG),
and
Amazon.com (AMZN)...
Although, at this price, AMZN is a
sell... It got recommended today...
We've been on it for so long...
Beyond The Four Horsemen - and I've got
to tell you, as long as they grow 30%,
I'm going to be with them - I like
Hewlett-Packard (HPQ*)...
It's not near growing as fast as the
others, but it's inexpensive. I
own it for
my trust...
. . . .
.
Now Apple Inc. (AAPL)
just happens to be the one of those four
horsemen that I want you to think of as
the New England Patriots... Now,
would you want to own them next year?...
It's going to be very difficult to top a
16-0 season... That's what AAPL
had... But I still don't think you would
bet against the Pats, and I wouldn't bet
against AAPL either...
. . . .
.
As for the
NYSE (NYX*)...
the bane of Cramer in 2007... I think
it's having a great quarter... I think
it's going to have a great year... but
maybe... maybe people will recognize
that it's more of a play on Europe this
year...
This stock did everything right, and it
still didn't do well but, if you look at
from the point of view from someone who
saw it in the $60s go into the $80s, it
no longer seems stuck in the mud...
And when a stock is suddenly sprung from
the mud like the NYX*, you hang on for
the ride up... I would buy this
stock and I believe that Duncan
Niedermeyer, the new CEO, will cut
overhead much more aggressively than
[John] Thane (the previous CEO) could,
in part, because of French laws are now
kind of saying it's all right... but
also because Duncan Niedermeyer is a
tech guy... and he understands... I
don't think he's heartless, but he
understands what needs to be done for
the shareholders, in terms of cutting
costs there...
I think the estimates are way too low
for NYX*...
. . . .
.
As for the speculative names,
BioMarin (BMRN)
should still work, thanks to the
strength of Kuvan, which is the first
and only FDA-approved drug for PKU.
By the way, I think there's going to be
far more use than any of the numbers
indicate.
I like the pipeline too for BMRN...
It has a drug in Phase II tests for
peripheral arterial diseases and sickle
cell diseases... Remember,
BMRN is the stock that dreams are made
of...
. . . .
.
As for the two big losers, let's own
them again...
Rite Aid (RAD)
and
Level 3 Communications
(LVLT)...
I need to see a good quarter from RAD,
as much as I think that Mary Sammons had
the guts to come on this show. It
took real guts for her to come on the
show after the beating that everybody
who listened to me, and her, have
taken...
But you know what?... Even after that, I
cannot bless the stock until I see a
couple of good quarters...
. . . .
.
LVLT... I like it here. Call me a
glutton for punishment...
But video on the web, which is what it's
levered to - and it had execution
problems - and Jim Crow... the terrific
CEO... is back to work after a
life-threatening illness. I'm
sticking with Crow and I'm sticking with
LVLT.
. . . .
.
The Bottom Line!:
Cramer says
Goldman Sachs (GS*),
Altria Group Inc. (MO*),
Apple Inc. (AAPL),
NYSE Euronext, Inc. (NYX*)
and
Level 3 Communications Inc.
(LVLT)
are my 2007 plays that
should do well in 2008...
and are still worth
owning.
