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Opening Segment 1
Title: |
'Cramer's Game Plan
For Next Week'

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Featured Stock(s): |
Marsh & Mclennan Companies
Inc. (MMC)
MBIA Inc. (MBI)
Jacobs Engineering
Group, Inc. (JEC)
MEMC Electronic
Materials Inc. (WFR)
Apple Inc. (AAPL)
GameStop Corp. (GME)
Monsanto Co. (MON)
See Opening Segment 2,
below...
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Before describing his Game
Plan For Next Week, Jim
discussed two CEOs that he
is removing from the
CEO Wall of Shame, and
their replacement, as
follows...
. . . .
.
The
CEO Wall of Shame...
Five companies - Five
CEOs listed:
1. Kerry Killinger, SLM
Corp. - Sallie Mae (SLM)
2. Patricia Russo,
Alcatel-Lucent (ALU)
3. Hector Ruiz,
Advanced Micro Devices Inc.
(AMD)
4. Gary Dunton,
MBIA Inc. (MBI)
5. Open...
6. Lou Scott,
Wal-Mart Stores Inc. (WMT)
. . . .
.
This is a major, major day
here on Mad Money... We're
back with the Mad Money
Wall of Shame!...
This place is reserved for
only the most incompetent
corporate officers in
America... the men and
women who destroy value
simply by having their
name at the top of the
Masthead...
First, Hall of Shamer,
Mike Cherkasky, CEO of
Marsh & Mclennan Companies
Inc. (MMC)...
was fired today!
He didn't resign. The
board actually booted
him... The stock, of
course, closed up 5.3% in
response.
It's a Mad Money Christmas
miracle for MMC's
shareholders.
Hey, but also, while we're
at it... We need to take
off this fellah, Paul
Saleh... he's the acting
CEO of
Sprint Nextel Corp.
(S)...
He's off the Wall of Shame
list... I think he got
another position there...
CFO position. S hired a
permanent CEO last
Tuesday. Now that's an
uptick, but we still want
Tim Donahue, late of
Nextel, to save the
day...
That means we've got room
for a new name. Oh, is
this a tough choice. Holy
cow, I was sweating over
this one...
For example, this week, we
had a major blowup at
SLM Corp. - Sallie Mae
(SLM)...
This thing has now become
like a box of chocolates
(i.e., you never know what
you will get)... SLM, the
stock, got pummeled, and
then analysts thought to
ask some tough questions
on the conference call...
CEO, Al Lord, no... he
wouldn't hear of it... he
just cut the call off
using an expletive about
getting the 'heck' out of
here, so to speak... Class
act!
Hey, Mr. Lord... take it
from one hot head to
another... No, you don't
go cursing in those public
forums.
Now, we haven't seen
cursing on a conference
call since Jeff Skilling
blurted out one on an
Enron call. And, where,
prey tell, did he end
up?... How about
incarcerated...
No, we just want Lord to
leave, and let SLM to go
up a little bit.
But the real winner... a
man who would be elected
unanimously to the Wall of
Shame, if anyone else but
me voted... is Gary
Charles Dutton... Gary
Dutton. He's the CEO of
MBIA Inc. (MBI),
the insurer of crummy
mortgage bonds.
Dutton's a man I believe
you'll hear quite a bit
about in the coming weeks,
as his company fights for
his life...
Now, my take is... If the
board sacrificed Dutton,
the company would stand a
better chance of
surviving... although,
because of this man's
reckless stewardship...
Thriving?... Take it off
the table. Out of the
question.
. . . .
.
All right, enough about
guys who lose you money,
right? How about a little
Christmas cheer?... Let's
talk about stocks that I
think will make you money
for the rest of the
year...
This is your Game
Plan... and, at this
time of the year, there's
one thing that's more
important than any other,
if you're trying to take
advantage of short-term
moves... Do you know what
I'm talking about?...
I'm talking about
markups...
This is one of those slimy
practices that a lot of
people like to pretend
doesn't exist... but it's
not technically... Well,
the SEC (i.e., U.S.
Securities and Exchange
Commission) will prosecute
for it...
It moves stocks, and a lot
of fund managers do it...
What are markups?...
Okay, you run a mutual
fund, or a hedge fund...
You want to show some
extra-good, high-octane
performance at the end of
the year, so you buy
shares in stocks that you
already have big positions
in... so you can point to
the new higher prices,
inflated by you... and say
your performance is better
because of it...
Now most individuals who
watch the show, don't
think they could ever put
an order in that could
move the stock up but,
when you're big, you can
move a stock, believe
me...
Tonight, I've got five
markup candidates... These
are all stocks that have
already had big gains, and
have big institutional
ownership, because it's
the institutions that do
the markups...
So, if you're a homegamer,
it could be pretty simple
to take advantage of these
markups, and that's what I
want to help you do...
There's some time
sensitivity... You need to
do this early next week,
because marking up is
frowned upon by the
government and, if they
catch you nailing the
closing price on the last
day of the year, they will
nail you... so, the more
nefarious and clever of
the funds start next week,
and stop the day before
the last day of the year.
You want to surf that
Monday to
day-before-New-Year's
wave...
My five markup targets...
Jacobs Engineering
(JEC),
MEMC (WFR),
Apple (AAPL),
GameStop (GME),
and Monsanto (MON)!...
These aren't just stocks
that I expect will get
marked up... They're also
stocks that are worth
owning on their own right,
even if there is no
markup... lest you be left
holding a loser. I don't
want that.
. . . .
.
First, Jacobs
Engineering (JEC)...
This is an infrastructure
name with 75% exposure to
our favorite area, oil and
gas...
According to JEC, most of
its oil customers have
planned their new projects
based on $40 to $50 oil.
Oil's much higher than
that. That should mean
that there's going to be
strong demand for more new
projects.
The stock recently,
frankly, had a hiccup,
after announcing an 8
million share shelf
registration. It's
starting to bounce back.
It's bound to trade
higher, I think...
It's such a perfect markup
candidate...
It's also the company that
stands the best chance to
build those big, liquefied
natural gas terminals you
hear about that would be
off the coast. Yeah, they
have that expertise.
. . . .
.
How about MEMC (WFR)?...
On this show, we've loved
this stock for a long time
and, boy, it just had such
a spike... It's at a
52-week high.
It makes silicon wafers,
and they're in high demand
right now, thanks to the
solar business, which is
just en fuego...
Remember, we like
First Solar, Inc. (FSLR)
too...
WFR has a new contract
with Conergy, the world's
largest solar integrator.
That's worth $7-8 billion.
Another contract just like
it could be in the works
for new year.
Their semiconductor
exposure isn't great, but
they're sitting on top of
a big buyback and a great
balance sheet with a ton
of cash...
. . . .
.
So, WFR we like, okay?...
We think that's a good
one... And JEC... Keep
track.
. . . .
.
Apple (AAPL)...
no introduction needed.
iPod demand, staying
strong. Component pricing
isn't... That's good for
margins, come the bottom
line.
New operating system,
Leopard, has been driving
sales of computers.
iPhone, incredibly
strong...
This is an ideal markup
candidate... a stock you
need to show you own at
the end of the year, if
you're a mutual fund
manager, otherwise people
think you're an idiot...
. . . .
.
The fourth markup stock is
GameStop (GME)...
the #1 video game
retailers, and the best
season for games ever...
They've got a partnership
with Nintendo on the
Wii...
Now, here's something
interesting... If you go
into GME on Monday, for
Christmas, and you
pre-order one of these
Wiis... you might get it
by February...
This brings customers into
the store twice, and is
exclusive for GME's
customers.
. . . .
.
Finally, we have Monsanto (MON)...
the biotech source of the
seeds for this wild
agricultural bull
market...
We don't have enough corn
to meet the demand for
food, let alone energy,
and MON sells hybrid corn
seeds that increase corn
yield more than ever. They
expect to have 30% of the
U.S. corn market, up from
23% by 2012...
This is an oil driller,
basically... oil service
company...
. . . .
.
The Bottom Line!:
I think the best
way to trade at the end of
the year is to try to
anticipate these
markups... So these stocks
are, once again, Jacobs
Engineering (JEC),
MEMC (WFR),
Apple (AAPL),
GameStop (GME),
and Monsanto (MON)!...
Buy, buy, buy!
[See Jim's 2nd Opening
Segment stock picks
below... ]
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See all of tonight's stocks'
latest quotes on
Yahoo! Finance |
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