Jim Cramer's Mad Money In-Depth, 10/10/07: Google Banishes the Bears

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday October 10. Click on a stock ticker for more analysis:

Google Growth (GOOG)

The Bears have been so consistently wrong about Google that Cramer declared,” At this point you have a duty to yourself and a duty to your wealth never to take financial advice from anyone who doesn't recommend Google." Even his raised estimate of $750 is “a total and unequivocal lowball estimate,” given the company’s growth.. He thinks a more reasonable, less conservative estimate would be $900. With 70% of the world using Google, the company ought to grab at least 10% of the total advertising market, generating $60 billion in revenue. Google is growing so fast, it is difficult to assign a multiple for the stock, and compared to other growth stocks, Google is inexpensive, said Cramer.

Related: David Neubert is underwhelmed by Google's market cap.

Bionic Baby Boomers: Alcon (ACL), Smith and Nephew (SNN), Stryker (SYK)

As the Baby Boomers go grey, Cramer looks to stocks like ACL which can produce replacement parts for prospective “bionic women and $6 million men.” He discussed SNN and SYK which make orthopedic implants and devices which replace hips, kneecaps and joints. Currently the Justice Department is investigating the companies, and Cramer comments SYK is the better choice now because it has escaped penalty and is cheaper. Once the investigation is completed, he predicts Stryker will rise 36%.

Related: David Jacome thinks the Orthopedics industry will be booming.

CEO Interview, Jean-Jacques Bienaime, BioMarin (BMRN)

Cramer says BMRN has a “good chance” of having a profit next year from its drug Kuvan, which if approved will be the only treatment for the rare disease phenylketonuria. The FDA’s decision is due November 25, and Cramer thinks the stock is a worthwhile investment.

Related: SAC Capital and Citidel LP are buying up shares of BioMarin.

Down on Downey (DSL)

Cramer apologized for having recommended DSL, since it has not performed well.

Related: Amit Chokshi believes DSL may be a Zero.

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Comments

[GRiddick:]

Good morning,Jim

I think I represent a minority of folks out here who have an entirely different view of Google than you, and most other financial journalists and analysts, I follow these days.
You see, you continue to report on all the phenomenal upside of this thing they call "google" ... yet you completely ignore the more predictable downside. This misleads investors in my view, and leads to the type of things that happened back in 2000.

The little old ladies in Omaha end up holding the bag.

Google, for years, has written its own rules. Its rocket scientists invented a new moral compass owned and operated exclusively by a select few inside Google .. and several of their lawyers, investment bankers, and venture capitalist friends as well. They rob from the middle class and give to the poor ... and others in the middle class .. and to the rich ... and to themselves. Over and over again. Google is one of the most flagrant copyright infringers on the planet. Day in and day out ... millions of times a day ... every day.
Not everyone plans to sell out and settle with Google, as they apparently see all of this "shaking out".

And if you don't think a misguided moral compass, unethical business practices, corporate arrogance, hypocrisy, and greed can bring down someone as mighty as Google, you might want to think again.
Can you spell ENRON?

Jim, I would never make such a claim without substantial proof of what I say. I'd be happy to review our research, and our extensive documentation, with you in more detail if you ever decide to tell your readers the flip side of the Google story. The true side.

George P. Riddick, III
Chairman/CEO
Imageline, Inc.

[e-mail]...

2007 Oct 11 10:37 AM