Cramer's Stop Trading! Google Lacks a Catalyst (10/14/10)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday October 14.

Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), LyondellBasell (OTC:LALLF), Yahoo (NASDAQ:YHOO), Apollo (NASDAQ:APOL), Frontier Communications (NYSE:FTR)

While some would consider owning Google (GOOG) alongside Apple (AAPL), Cramer is no longer a fan of Google, which he says lacks a catalyst and does not have Apple's accelerating revenue growth. The upside in Google depends mainly on its ability to take market share from Yahoo (YHOO) rather than creating new markets with new products, as Apple is doing with the iPad. Cramer's target for Apple is $325.

Cramer would avoid for-profit education stocks. This once hot sector has been hit with federal regulations which are making it difficult for these companies to make profits. Apollo (APOL) withdrew its 2011 fiscal outlook, a move that sent other education stocks down. Cramer thinks it will take a while for this group to recover.

Chemical stocks have moved significantly, but Cramer thinks LyondellBasell (OTC:LALLF) is a "great value play coming out of bankruptcy."

Cramer feels that Frontier Communications' (FTR) dividend is secure: “This is now the largest dividend in the S&P 500 and I think it’s safe.”


Jim Cramer was up 31% in 2009. Click here now to sign up for Jim's Action Alerts PLUS and trade alongside him. Special discount for Seeking Alpha users.

Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.