The Cramer Report
Monday July 10, 2006
"THE BOTTOM LINE, ALL THE TIME"

 
 Pick Of The Week:    News Corporation NWS

Cramer says he is willing to put his credibility on the line for this one, folks.

He said this stock may not make you money this week, but "everything about News Corp, other than print (The newspaper division of the company -ed.), screams that the stock should be going up."

Cramer speculates that News Corp. could join the ranks of Yahoo and Google in the online world.  

They recently bought, MySpace for $580 million, which many considered a bad move.  Cramer objects and says they are wrong and will find a way to move beyond the mostly teen crowd that MySpace caters to.

MySpace is all viral growth, so they don't have to spend a dime promoting, he said.

Jim said that he wished he owned it for his Charitable Trust. (The highest praise Jim can bestow on any stock)


Read an article/interview with Rupert Murdoch and others from News Corp, discussing the potential of Myspace here. (Wired Online)

   Bend It Like Becton

When doing your homework,  you have to keep your eyes open.  Especially the local papers.  

Jim's hometown paper,
the Newark Star-Ledger gave him Becton, Dickinson and Co. BDX.

Remember on Friday, when Jim said that in a slowing economy you have to stay defensive and go with food and drug companies?

This is a play on diabetes.  No matter how poor you get you're always going to get syringes, and if you're too poor the government will pick up the tab for you, Cramer said.

Becton Dickinson recently bought a company that can detect staph in 2 hours.  The article said this will save lives, Cramer translates that to alot of money.

When the market gets ugly, you want to buy medicine chest stocks, he said, and this is the stock hospitals are going to go to when they get sick. 



    Flexible, or Foolish?

Smart investors are flexible, Cramer said.  For instance...

3M Company MMM  3M is as close to a blue chip stock as you can get (Jim eschews the idea of 'Blue Chip Stocks').

The stock fell last week after cutting it's  guidence (guidance is a publicly traded corporation's official prediction of its own near-future profit or loss, stated as an amount of money per share. ).

Cramer said that "Chief Financial Oficers cannot lie about numbers, but CEO's can act suprised -  Which makes them dangerous.

You need to be flexible.  "Pigs" will not make money if they hold on.  Jim advises that "if you make some money in a stock, take some off the table, because you have not made a dime until you have sold..."




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