Segment 1: Off the Charts
Cramer looked for a chart that shows that a stock has a lot of room to go up, even after the bullish run in the market, and he found AT&T (T). It has been building a base since November and has now moved above the 200 day moving average, so it is using that level as support. Cramer said that the fundamentals show that AT&T is a safe way to play the mobile internet tsunami because of its deal to sell the iPhone and its 6.2% yield. The company is seeing subscriber growth and increased data usage, which will increase their revenues. He also likes that AT&T’s land line business flattened out after several months of losing subscribers, and that their U-Verse TV product is also selling well. Cramer added that they are cutting costs while building out their wireless network, and put a $30 price target on the stock.
Cramer took phone calls on the following stocks:
Apple (AAPL): Cramer said to start buying a position now, and then hope the stock pulls back so you can add to your position. He also reminded the caller about his $264 price target.
Ericsson (ERIC): Cramer would rather own Qualcomm (QCOM).
Segment 2: Interview with Pennsylvania Governor Ed Rendell
Cramer talked to Governor Rendell about the opportunity for new jobs in the state, energy independence, and the G-20 summit in Pittsburgh this week.
Segment 3: Know Your IPO, Part 2
Cramer is looking at IPOs every day this week, and talked about A123Systems (AONE)today. The company makes batteries for hybrid cars and plug in electric cars. He thinks that this is a good play on new battery technology because it has plenty of government support at the state and federal level, is ramping up production, has major investors behind it, real customers, and can still provide new breakthroughs in battery technology. He thinks the stock will trade above the $10 - $11.50 range being offered right now, and said that it could go over $19.00. He said he would buy 500 shares at $13.00, 300 shares at $15.00, and 100 shares at $19.00 or higher, but would not buy it in the mid $20’s or higher. He also said not to buy it on the open market if you can’t get in on the IPO.
Segment 4: Lightning Round!
(X):
Toronto Dominion Bank (TD): Cramer is bullish on this bank because it avoided the credit problems that hurt many other banks and it has a good yield.
Allos Therapeutics (ALTH): Cramer said that this has run up too much right now, but it is a good speculative healthcare play.
Alcoa (AA): Cramer thinks that this stock is cheap compared to its peers, so he is bullish as long as it is below $25.
Tellabs (TLAB): Cramer is bullish because it has strong fundamentals and is a takeover target.
Alaska Communications (ALSK): Cramer is bullish on this stock because he thinks its big yield is safe.
Citigroup (C): Cramer is bullish on this stock.
Segment 5: Eureka Moment
Cramer’s Eureka Moment for today is that AIG’s (AIG) management should take advantage of the huge runup in its stock price and do a large secondary offering to raise cash, rather than keep selling off good businesses. He said that the stock has been pushed up by positive reports from the CEO and founder Hank Greenberg.
