On tonight’s MAD MONEY, Cramer reviewed some stock basics on risk profiling.

Cramer reviewed non-speculative companies for growth and value.  You go to the most household names in the business.

Value stocks are like Verizon (VZ) and AT&T (T), according to Cramer.  But he noted you can’t just own 2 telco’s and think you are diversified.

The value stocks pay high dividends and have no longer seen raw rapid growth outside of wireless and VoIP and tertiary services.  They are trying to grow but they have to keep raising dividends.  They have enough yield supprort to keep them from falling out of bed.  Out of the two Cramer likes AT&T (T) better because there will be a lot less competition in the phone space.  The lower yield may mean they’ll more easily raise their dividends into the future.

Jon C. Ogg
December 13, 2006