The Cramer Report
Tuesday  June 20, 2006

We here at The Cramer Report have to pay the bills.  Our broker is calling,
and says that our margin debt is due. ;)

Take a look at the offers that we are endorsing, and pick the one that will save you some money!


"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."





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