Cramer Eats Crow

Negative stocks: SIRI, HSY, PNRA, RATE, F

Cramer went back over Sirius (SIRI), and said he is eating crow.  He said point blank right now that neither one of these will make it as a standalone company.  He doesn’t think it is a buy here, but the only way to make it is if they merge.  Doug and I already outlined what a potential Sirius-XM would look like, and you can read that again here if you didn’t before.

Cramer also said he likes Panera Bread (PNRA).  He said the reduced guidance was from the Midwest weather.  He doesn’t think it was just storms, because that is only 40 out of 900 stores.  He said he was wrong to recommend it, and he thinks the growth is slowing.  He said it is time to ring the register on PNRA.  Panera closed down a tad today, but traded down 1% more to $56.13 after he panned the company.  PNRA’s 52-week low is $46.25.

He thinks the only way to play Ford (F) is to buy the convertible notes.  He said the common stock can get crushed and the new debt is paying 4%.  You can buy the convertible bonds instead.

Bankrate (RATE) needs to have the profits taken now, because he doesn’t think Sue Decker wants anything to do with them and will not be acquiring the company.

He also started out saying he was wrong on Hershey (HSY) since they warned.

Does crow taste like chicken?

Jon C. Ogg
December 7, 2006