Jim Cramer: Google, Sears Holdings, Goldman Sachs, XM Satellite

Google Inc. (GOOG), Sears Holdings Corp. (SHLD) and Goldman Sachs Group Inc. are worth buying for novice investors because of their similarities with Berkshire Hathaway Inc., ``the greatest investment of all time,'' Jim Cramer said on his ``Mad Money'' television program on CNBC.

Google, the most-used Internet search engine, may exceed $500 a share because so many children use it and the company generates a lot of cash, said Cramer, a market commentator and former hedge-fund manager.

Google ``is a repository of all things great,'' he said.

Novice investors should buy Sears Holdings, the biggest U.S. department-store company, because Chairman Eddie Lampert ``is building the next Berkshire Hathaway'' with his investments and is buying back stock, Cramer said.

Goldman Sachs, the No. 2 U.S. securities firm by market value, will rise $50 within six months because of its diversified services and the ability of Chief Executive Officer Lloyd Blankfein, Cramer said.

XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. are worth buying because of a potential merger between the two largest U.S. pay-radio providers, Cramer said.

XM will advance to $20 a share, while Sirius will rise to $8 if the two companies merge, he said.

Cramer said the shares of biotechnology companies Merck & Co. and Pfizer Inc. (PFE) will fall if Democrats gain Congressional control. He also recommended Medicis Pharmaceutical Corp. and Allergan Inc.

Yahoo! Inc. (YHOO), the most-visited U.S. Web site, ``will eventually get its act together,'' Cramer said.

Other Recommendations

THQ Inc., the maker of video games including ``Cars,'' is worth buying because of strong sales of its ``Saints Row'' game, lack of debt and high cash balance, Cramer said. GameStop Corp. (GME), the world's biggest video-game retailer, is worth buying until it reaches $50 a share.

Microsoft Corp. (MSFT), the world's biggest software maker, was recommended because it's ``a great way to play technology into the Christmas rally,'' while Sony Corp. (6758), the world's second- biggest consumer-electronics maker, is a ``hold,'' Cramer said.

Corning Inc. (GLW), the world's biggest maker of glass for liquid- crystal display screens, is worth buying because inventory for televisions with LCDs has fallen, Cramer said.

Allstate Corp. (ALL), the second-largest U.S. home and auto insurer, may rise to $65, he said.

Cramer recommended Trinity Industries Inc. (TRN), Dentsply International Inc. (XRAY), Sunrise Senior Living Inc. (SRZ), Wells Fargo & Co. (WFC), Jefferies Group Inc. (JEF), Knight Capital Group Inc. (KCG), Lehman Brothers Holdings Inc., Merrill Lynch & Co., Centex Corp. and KB Home (KBH) in response to questions during the show's ``Lightning Round'' segment. Electronic Arts Inc. (EA) will increase to $75 a share while Triad Hospitals Inc. is ``OK.''

He also told viewers to avoid Freightcar America Inc. (RAIL)

Cramer said he owned Google, Sears Holdings, Goldman Sachs and Yahoo for his charitable trust.

To contact the reporter on this story: Danny King in Los Angeles at dking19@bloomberg.net

To contact the editor responsible for this story: Aimee Sullivan at asullivan@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.