Recap of Jim Cramer's radio show on Wednesday June 7. Click on a stock ticker for more analysis:
Ten Speculative Stock Picks - Cramer notes that this might be the time to take a chance on speculative stocks, but with caution, never with borrowed money, and not at an age when it would be difficult to recoup losses. Cramer recommends that speculative stocks should not comprise more than 20% of a portfolio. His ten picks include:
1. Rentech (NYSEMKT:RTK)
2. Crystallex International (KRY)
3. Ivanhoe Energy (NASDAQ:IVAN)
4. Transmeridian Exploration (TMY)
5. Northgate Minerals (NXG)
6. EuroZinc Mining (NYSEARCA:EZM)
7. JDSU (JDSU)
8. Conexant Systems (NASDAQ:CNXT-RETIRED)
9. Finisar (NASDAQ:FNSR)
10. Ciena (NASDAQ:CIEN)
Although Cramer suggests these stocks for speculation, he also points out risks, such as the doubts over Rentech's technology, and uncertainty concerning KRY's, EZM's and NXG's mines. He notes that JDSU's optical market is not sturdy, and that CNXT should refinance. Finisar is threatened with competition and CIEN's future operation margins hang in the balance. In short, Cramer says proceed, but do so with caution.
Global Positioning Speculation: Garmin (NASDAQ:GRMN), Trimble Navigation (NASDAQ:TRMB), Navteq (NVT), and MapInfo (MAPS) - Cramer believes these picks are ready to take off: "These stocks are centered around hurricanes," he said. "People want new global positioning systems. They are going from being a toy of the rich, to a necessity of the almost rich." Cramer nominates Garmin as the best-of-breed, since it increased its earnings 67% to $322 million. However, Cramer warns that these stocks are speculative.
CEO Interview: Dynegy (DYN - CEO Bruce Williamson discussed the benefits of consolidation both for stockholders and for the company. When asked about selling plants, Williamson responded that it is something DYN will do once in a while, but that it selling is not an essential part of the company's portfolio. Cramer asked Williamson about the company's debt, and Williamson replied that he as introduced an aggressive deleveraging program. Cramer gave DYN two thumbs up.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.