Cramer's Stop Trading! AT&T Needs to Leapfrog Verizon (12/6/10)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday December 6.

Riverbed (NASDAQ:RVBD), Agnico Eagle Mines (NYSE:AEM), Celgene (NASDAQ:CELG), Hewlett Packard (NYSE:HPQ), Radware (NASDAQ:RDWR), AT&T (NYSE:T), Verizon (NYSE:VZ), Gold Trust ETF (NYSEARCA:GLD)

With gold nearing the $1,400 level, Cramer says the yellow metal doesn't show signs of slacking as supply continues to be an issue and demand is increasing worldwide. The ramp in gold is not because of the dollar or because of ETF activity, "because people in China and India are not buying the Gold Trust ETF (GLD)." Cramer says Agnico Eagle Mines (AEM) is the cheapest in the mining space.

With Celgene (CELG) down 5% on news that its blood cancer drug Revlimid may, in rare cases, cause secondary maglinancies, Cramer would buy the stock. Revlimid has enough "life-affirming and life-sustaining characteristics" that rare risks are unlikely to destroy demand. "I think it is a buying opportunity."

It appears that Hewlett Packard (HPQ) and Riverbed Technologies (RVBD) may be in a contest to buy Radware (RDWR) whose shares rose 21% on Monday. Cramer predicts the takeover price may be in the mid-40s compared to its current level of $39.

Consumer Reports panned AT&T (T) which the magazine said was the worst wireless carrier in every category. AT&T has the unfortunate problem of dropped calls and while the company says they will "look into ways of improving it," they said it is an issue with "one call in thousands." Cramer thinks the company needs to be more aggressive about addressing the problem, put up more towers and shouldn't be satisfied merely to compete with Verizon (VZ), but should resolve to "leapfrog Verizon."


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