On tonight’s MAD MONEY Cramer went over his 3 TOP GROWTH PLAYS for 2007.
Cramer’s #2 Growth Stock for 2007 is Apple (AAPL). Cramer has been positive since the start of MAD MONEY and it’s up 175% in the last 2 years. He said buying here isn’t chasing it, it’s making a good growth investment. Apple has what it takes according to Cramer and he thinks they are a winner. The iPod and iTunes are effectively the defacto standard for the new music listening craze. He thinks it’s also the reservoir of content and now they ahve vertically integrated the music business and imposed their format on the world. He also doesn’t think the competition can overcome its dominance. Cramer says Apple beat the Zune from Microsoft (MSFT) before it even came to market. On the horizon what can help is the iTV, the $300 set top box that integrates your TV and computer for downloads, also the Apple Phone at some point and it won’t be mediocre (which may be MacWorld next week on Tuesday). Analysts don’t have these growth drivers into the forward numbers and he thinks the estimates and targets will be raised in waves. The company is also winning more and more computer business and Cramer noted the market share could go from 2.7% to 3.5% and add 12% to its earnings. On the options back-dating, Cramer thinks this is a compensation irregularity and recent weakness is a gift because it is only a penny per share in earnings and he is inclined to believe the company this time.
On a call-in he said Google (GOOG) is going to $500 and then to $600.
The #2 GROWTH PICK FOR 2007 was Cisco Systems (CSCO).
If you will recall last night he noted that his top 3 VALUE STOCKPICKS for 2007 as the following (with links through to the fulldescriptions):
1) Altria (MO)
He also predicted 14,582 for the DJIA by the end of the year.
Tomorrow night he’ll go over the Speculative stock picks for 2007. There will be two more picks tonight.
Jon C. Ogg
January 4, 2007