Jim Cramer's Mad Money In-Depth Stock Picks, Nov. 13
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Coldwater Creek (CWTR)
Cramer says that CWTR is a great idea because the site is designed for the "Internet illiterate baby boomer generation," and connects internet customers with an actual people who help them find products. Coldwater Creek is a high-end site which appeals to women who make over $75,000 and gives them an opportunity to actually shop rather than just purchasing things online. "This stock has the retail triple play going for it," he said. "... Coldwater generates sales through a catalog business, an Internet business and a chain of retail stores." In addition, the company is a "regional-to-national story," sells around 90% of its goods at full-price, and is "aggressively" increasing its number of stores. Finally, Coldwater is a cheap stock and which has great upside potential.
Related: Fat Pitch Financials is not too excited about Coldwater Creek.
General Motors (GM) Ford (F) Toyota (TM)
General motors has scaled back its production and has been hurting since its deal with Nissan and Renault fell through and Jerry York left the Board. Cramer also is not seeing much growth in Ford and prefers Toyota, which is coming out with its first full-size pickup truck. It also has a vehicle in NASCAR, which is the second most popular sport in the country, and Toyota is resembling an American car company, grabbing market share away from Detroit automakers. In addition, Toyota reported a great number and Cramer predicts that it will continue to outdo GM and Ford.
Related: Ted Allrich discusses the success of Toyota.
KB Home (KBH)
Although KBH was involved in the options-backdating scandal, Cramer would buy the stock because while people are waiting for a resolution, it should start going up, and the resignation of the CEO is an important step in the resolution process. In addition, since the CEO chose to backdate stock, he probably thought the future looked brighter for the company, notes Cramer, who adds that the stock is very cheap; "It has almost no debt and screams takeover target." KBH has diversified beyond its native California, and currently only 31% of its sales are there. Cramer insists on staying with the housing sector because of the rise of immigration and the decline of raw costs and interest rates.
Related: Average Joe Investor observes that housing CEOs are talking down the market.
CFO Interview: Tsipi Kagan, Radvision (RVSN)Tsipi Kagan discussed changes in video conferencing, commenting that the abundance of internet protocol networks is a definite advantage and the technology is more user-friendly. Cramer asked Kagan if she is concerned about the level of RVSN's customer concentration with Cisco, and she replied,"Having Cisco as a partner is the best thing that has happened to Radvision ... It's a great potential for growth." Kagan also mentioned that IBM's partnership will be beneficial in 2007. Cramer blessed the stock and said that it is going higher.
Related: Shlomi Cohen discusses RVSN's growing momentum.
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