Jim Cramer: Qwest, Dynegy, Brocade, Automatic Data Processing
Qwest Communications International Inc., the fourth-largest U.S. telephone company, was recommended today by Jim Cramer on his ``Mad Money'' television program on CNBC because it was one of three companies that won a federal contract worth up to $48 billion.
``This is a real big deal,'' said Cramer, a market commentator and former hedge fund manager, of the contract announced last month. ``Now the stock pulled back enough I think it can run again.''
He said the ``speculative stock,'' which closed at $8.76 on Wednesday, could reach $12.
Cramer also recommended Dynegy Inc. (DYN) and Brocade (BRCD) Communications Systems Inc. as speculative buys, saying they could both reach $12 as well. He said Dynegy shares could rise if the company makes money this year or becomes an acquisition target. Brocade, which bought competitor McData Corp., may ``beat numbers by consolidating costs and increasing prices,'' he said.
Cramer named Automatic Data Processing Inc. (ADP) his ``number one aristocrat pick'' because it ``has a history of raising dividends and the money to do it further.'' He also praised the company's decisions to spin off its underperforming brokerage business and spend $75 million on a share repurchase program.
During the show's ``Lightning Round,'' ``Sudden Death'' and ``Mail'' segments, Cramer recommended buying or holding Airgas Inc. (ARG), Akamai Technologies Inc. (AKAM), Vertex Pharmaceuticals Inc. (VRTX), Express Scripts Inc. (ESRX), Terra Nitrogen Company L.P., Mosaic Co. (MOS), M&F Worldwide Corp., American Ecology Corp., Harris Corp. (HRS) and NYSE Euronext. (NYX)
He suggested selling or not buying Sonic Solutions and CMGI Inc.
Cramer said he owns Express Scripts for his charitable trust.
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