Cramer's Lightning Round - Crossing the Rubicon (10/16/09)

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Friday October 16.

Bullish Calls:

Freeport McMoRan (FCX): "When we do minerals, we're going to recommend Freeport-McMoRan."

Agnico Eagle Mines (AEM): "If we want gold, we're going to do Agnico-Eagle Mines Ltd."

Skyworks Solutions (SWKS): "I am going to re-recommend Skyworks Solutions... buy, buy, buy! Especially after I was on the Nokia (NOK) call, and all components are in short supply."

3COM (COMS): "It's up 10% from where we liked it, and I continue to think that 3Com is incredibly cheap... buy, buy, buy! One of the great communication stocks out there... I would pick some up and hold it to $7."

Eli Lilly (LLY): "What's the matter with Eli Lilly? It yields 5%. It's got a safe yield. You're going to be able to stick it out."

Vivus (VVUS): "It is very, very speculative. It is Speculation Friday so, you know what? I'm going to endorse it because it's Friday, and I like spec... Otherwise, I would say, listen... we shouldn't be foolin' around."

Bearish Calls:

Rubicon Minerals (RBY): "Your play has run... sell, sell, sell... your play should be sold.... no pin action. Exchange it."

Cerner (CERN): "I would be careful. I would ring the register ahead of the quarter. It's almost impossible to do what Wall Street wants after a stock's run that far. How many times have we seen that this week?"

IMAX (IMAX): "Sell, sell, sell... Now I have not liked the stock since $8, so you could say, Jim, you do not have any standing. But, you know what? This stock's been around for a long time, and ultimately I think it disappoints. I want to ring the register and head home."

Blackstone (BX): "Look, it's not an expensive stock, and I believe that the IPO is going to be really good, but I cannot recommend that stock... don't buy, don't buy... Who really knows what they own? It's too much of a black box."

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Comments

[240:]

in August he says look out below (COMS) and worries about dropping to 2 dollars a share and now hes saying buy buy buy...your a joke Cramer..you son't know WTF your talking about.

Oct 18 12:27 PM

[DeeBrief:]

THE comments about IMAX shows what a complete moron Cramer really is. He misses a huge run up, obviously doesn't know the first thing about the fundamentals of the stock, and then bleats like a pig "Sell Sell Sell' What an unprincipled idiot!

Oct 18 09:17 PM

[Clint007:]

Cramer, every time you make your "recommendation" lol, I've done the opposite and for me is "tralalalala" (mean: winner).
So, mean (as example) if I buy Rubicon I will be a winner.
Unless a general correction for Gold.

Oct 19 10:12 AM

[S. E. Wells:]

While Cramer may be right about Rubicon in the short term, he is almost undoubtedly wrong long term. Rubicon is underpriced in terms of the gold they have in their deposit. With a market cap of approx. 886 million they are priced for an approximately 3.5 million ounce deposit. The Bruce Channel deposit next door was bought by Goldcorp for approx. $240 an ounce for in-ground ounces before a 43-101 was filed. At 240 an ounce, 886 million works out to about 3.5 million ounces. With their F2 zone and the rest of their 4 km long holdings in that particular claim block (including a few Titan 24 anomalies that look a lot like the F2 zone that haven't even been nicked by a drill yet), think more like 8 to 11 million ounces and you will be much closer to what they should be priced at.

Oct 19 11:59 AM

[needhelpbrok:]

I would just like to know one thing WHY is all his stock at the 52 week hi when he recommend them. Why did he not recommend them at the Low so you could really make mad money

Oct 20 09:16 AM

[Steve20423:]

He needs somebody to buy his stock when it's high so he recommends it to fatten the price just prior to slaughter of the suckers! He's a televised version of pump and dump.
He get's away with it because of the disclaimer on his broadcast.
He's entertaining, but his advice is worthless.


On Oct 20 09:16 AM needhelpbrok wrote:

> I would just like to know one thing WHY is all his stock at the 52
> week hi when he recommend them. Why did he not recommend them at
> the Low so you could really make mad money

Oct 20 11:30 PM

[S. E. Wells:]

New results today from Rubicon with further high grade intercepts up to 4200-4300 feet below sea level extending the depth of the deposit significantly. Additionally, F2 zone extended to nortwest by hole F2-77 where > 1 oz per ton intercepts made. As I said in the post above, think 8 - 11 million ounces when thinking about what Rubicon is or will be worth. This is no open pit property trying hard to make money at sub 1 gram per ton gold content. This is HIGH GRADE in Red Lake. These guys will be able to make money hand over fist if gold drops to $700 an ounce and guess what, it's not going to drop to $700 an ounce any time soon that I can see.

Oct 22 11:20 AM