Cramer's Russell 2000 Index Rebalance Stock Picks

Cramer wanted to talk about the trade of the year that hasn’t happened: The Russell Rebalance.  After the picks below is his additional commentary.  The rough range expected this year for stocks to be added is a market cap of $233 million on the low-end to $3 Billion on the high-end, has to be on a major exchange, has to be a $1.00 stock, no LLC and no trusts, no ADR.  He is predicting 3 of his favorite stocks that he thinks will join the Russell 2000 Index and go up ahead of it:

1) Coleman Cable (CCIX-NASDAQ) that makes electrical wiring and cable that doubled via an acquisition that only has one analyst and could become a target itself.

2) FC Stone (FCSX-NASDAQ), a commodities risk management company that came public in March that only has 2 analysts.

3) Great Lakes Dredge & Dock (GLDD-NASDAQ), a demolition and dredging services company that is protected by the Jones Act that prevents foreign competitors from taking its business with 40% market share.

The Russell 2000 has much money indexed to them and they have to berebalanced because of buyouts or because many fallout during the year.The Russell people are waiting for June 22, 2007.  The ones that haveto get dumped, and the ones that need to be added get bought up.  Theadditions and deletions are based on prices for TODAY’s close.  Thereare many that will be added and many that will be booted.  TonightCramer is working on the Russell 2000 for more smaller cap stocks.Cramer said that once these companies get added, they tend to getcovered more by analysts.  The average gains of the ones that went inwas 44% for the half that went up and a 26% average loss for the onesthat went down after being added.  At least Cramer told you not to buythem in after-hours today.

Jon C.Ogg
May 31, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.