Jim Cramer: Akamai, AMD, Krispy Kreme, Blockbuster
Time Warner Inc. (TWX), Verizon Communications Inc. (VZ), Akamai Technologies Inc. (AKAM) and DivX Inc. are among companies that may lead the market through December, Jim Cramer said on his ``Mad Money'' television program on CNBC.
Cramer, a market commentator and former hedge-fund manager, recommended companies such as Comcast Corp. (CMCSA), Arris Group Inc. (ARRS), Level 3 Communications Inc. (LVLT), Research In Motion Ltd. (RIM) and Cisco Systems Inc., saying computer-related companies often do well in November and December.
The release of Microsoft Corp. (MSFT)'s new operating system, Vista, will help hardware makers such as Advanced Micro Devices Inc. (AMD), he said. Apple Computer Inc. will benefit from the Christmas season, he said.
Software makers Oracle Corp. (ORCL), Quest Software Inc. and International Business Machines Corp. are also likely to rise, he said. He recommended Hewlett-Packard Co. (HPQ) stock and said he had bought it for his charitable trust.
Corning Inc. (GLW) may gain because of Wal-Mart Stores Inc.'s lower prices on big-screen televisions and because Verizon and AT&T Inc. are building out fiber-optic networks, Cramer said.
Cramer said he seconded the recommendation of Krispy Kreme Doughnuts Inc. (KKD) by Howard Penney, an analyst at Prudential Equity Group, because the stock is unlikely to face panic sell-offs, the company has new management and it settled a class-action lawsuit for less money than he expected.
Still, he said, ``There is a ton of risk, a ton of doubt, more doubt than almost any situation I've recommended on the show.''
Blockbuster Inc. has found a way to beat Netflix Inc. (NFLX) at its own game, Cramer said. Allowing them to rent movies online and return them in stores will help Blockbuster gain local monopolies as Movie Gallery Inc. closes stores.
Cramer interviewed Mark Vadon, Blue Nile Inc. (NILE)'s chief executive officer and president, and reiterated his recommendation of the stock, saying that a Piper Jaffray downgrade was misguided.
In response to a caller, Cramer said he recommended selling Ingersoll-Rand Co. because the company underestimated the extent of the slowdown in home construction.
He told another caller that what appeared to be a seasonal cycle in Starbucks Corp. (SBUX) was a coincidence and that he expected the company's growth to come mostly from outside the U.S.
Cramer recommended Cisco Systems Inc. (CSCO), Vertex Pharmaceuticals Inc. (VRTX), Ryanair Holdings Plc (RYA), Time Warner Inc., Corning Inc., Transocean Inc., MasterCard Inc. (MA), Apple Computer Inc. and Coldwater Creek Inc. (CWTR) in response to questions during the show's ``Sudden Death'' and ``Lightning Round'' segments.
He also told viewers to avoid Syntax-Brillian Corp., Aircastle Ltd. (AYR), ImClone Systems Inc., General Cable Corp. (BGC), Amylin Pharmaceuticals Inc., Superior Energy Services Inc. (SPN) and Zumiez Inc. (ZUMZ)
He said to sell SunPower Corp. (SPWR) shares Wednesday after the stock rises on any Democratic Party victory in tomorrow's election. He said to sell Dynamic Materials Corp. (BOOM) and buy it again after it declines.
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