Cramer Discusses Icahn in WCI

On tonight’s MAD MONEY show on CNBC, Cramer is discussing a winner, some piggy back plays, and the "Sell Block."

The first thing you want to do is follow the leader.  He said Carl Icahn a leader and did well of Lear (LEA) and Time Warner (TWX).  Cramer touted Stockpickr.com to track these big name managers.  He noted WCI Communities (WCI) as one that Icahn has been buying, and he sees that SAC (Steve A Cohen hedge fund) has been buying it too.  He said you can’t buy WCI just because they own it, so you have to think about what they see and why they bought it.  He said it’s a homebuilder but is a landbank because it owns tons of property in Florida and elsewhere.  WCI is trading below its book value, so you have to think it is a buy since it is worth more than its market cap.  Cramer thinks he’ll get them to do something with their real estate portfolio.  The $2 Billion in debt is being trimmed down.  How do you piggy back off WCI & Icahn? Cramer said Icahn bought likely between $18 to $20 instead of today’s stock price around $22.  So you have to wait for the Icahn hype to die down and then buy it when it sinks to a more reasonable price.

So what Cramer is telling you to do is to put this on a WATCH LIST and then buy if and when it pulls back.

Jon C. Ogg
January 18, 2007