"
BackPedaling"
CAL
(CONTINENTAL
AIRLINES CL B)
I am breaking an investment
vow... I want you to consider buying an airline!
If you read the book, Jim
Cramer's Real Money, you know that I tell you over and over
again that, at no time ever, should you own an airline.
These co.s have been just awful. They've been so bad for so
long, I can barely remember the last time they were worth
owning. I think it may have been the '84-'86 period.
And now, guess what? I think you should buy...
CAL
(CONTINENTAL
AIRLINES CL B).
Yes!
This ain't an
investment; let's get that straight. But I do think that it
is a terrific trade. How do I know that? Hey,
crummy market again today, and it was up! That's always the
sign of a strong stock.
There's a lot
going on here, but the most important factor is this 'open skies'
initiative. It would allow European airlines to have a
greater role managing U.S. carriers.
Supposedly, Air
France and KLM is desperate to buy anything - get anything on their
hands that they can possibly buy! House of
pleasure. Open skies could make every single one a takeover
target.
Now, it's true
that I think United Air may be the most likely one. They got
in and out of bankruptcy in record time, but I've got to recommend the
one, because you're never supposed to speculate on a takeover unless
the fundies are good - the one that actually think is good - which is
CAL.
Terrific
management; great, strong performance, for an airline.
The bottom line!:
I'm sanctioning - for the first time ever on Mad Money, and perhaps in
my life - a trade in CAL. I kid you not. You hold
onto this until the first - maybe the second if you're really into
taking risk - European makes a bid for an American carrier, and then
you get the heck out with your profits in tact.
"CRAMER WAS WRONG ABOUT THE
VONAGE IPO"
I'm here to tell you a tale of two IPOs.
I thinkVG
(VONAGE
HOLDINGS CORP)
- even with a 50% haircut - is still a triple sell!
On the other
hand, MA
(MASTERCARD
INC)
opened strong to begin with. And, in the midst of one of the
worst sell-offs in recent history, they came public on May 26th, two
days after VG. And, after pricing at 39, the stock opened at
$40.30, then closed the day at $46.00. It spiked up to about
$48. Now it's back down to about $44 and change.
I think it is a
serious two thumbs up buy!
MA, unlike VG, has a
lot of things going for it. VG, which has one business that's
under siege from all sides.
I think MA has a
strong, sustainable business.
The bottom
line!: Know what to look for in a hot IPO
and you could make some money. And I don't think it's too
late to get into MA and start trying to rake it in!
"CRAMER ADMITS
HISMISTAKE ABOUT URBAN OUTFITTERS"]
URBN
(URBAN OUTFITTERS, INC. )
He says:
"Not all
stocks that go down - even ones that Cramer used to like - get
cheap. Some just get more expensive, because the co.s behind
them are getting worse. I think you should get out of URBN
and understand what I did wrong."
According to Cramer, the
next leader in next
generation enterprise search and intelligent enterprise content
management is
AKAM
(AKAMAI
TECHNOLOGIES, INC. ),
because
"Frankly,
I'm going to send you to Akamai (AKAM), because I
feel that they still speed up the web enough, so that if they want to
do - they want to get the soccer games on - you'll probably end up
watching them in full speed with AKAM. That's the way I'd
play it. I have no other dot-coms to go out and stick my neck
out for right now."
