Cramer's Stop Trading! WellPoint Ain't Seen Nothin' Yet (12/9/09)

Includes: AAPL, DIS
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday December 9.

WellPoint (WLP), Apple (NASDAQ:AAPL), Disney (NYSE:DIS)

While investors seem ready to take profits in WellPoint (WLP), Cramer told them to hang on; "we ain't seen nothing yet." WellPoint's multiple has been compressed for over two years, and Cramer thinks the stock is a coiled spring. He also pointed to WellPoint's earnings power and insider buying. "This whole morass (the healthcare debate) is going to produce fabulous things for HMOs," Cramer said.

While Disney (DIS) CEO Bob Iger did not sound so upbeat about the company's movie business, Cramer thinks the film "The Princess and the Frog" will create a new cycle and a potential billion dollar franchise for Disney. He also commented that gross margins for animated films are usually strong because the company does not have to pay actors.

Rumors of Apple's (AAPL) production problems and issues with Verizon (NYSE:VZ) have been greatly exaggerated. Cramer urges investors not to be swayed by negative hype about Apple and even if there is an issue with Verizon, Europe has multiple distributors for the iPhone.

When asked for a forecast of 2010, Cramer said, "I think we're fine. I don't think we are going to do anything remarkable, but I think we're fine."


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