Recap of Jim Cramer's radio show on Friday October 27. Click on a stock ticker for more analysis:
Yahoo! (YHOO), Comcast (NASDAQ:CMCSA), Time Warner (NYSE:TWX), and IAC/InterActiveCorp (IACI) - "There are times when a stock looks good, but the company just can't seem to get it together," says Cramer who calls Yahoo a "disaster" but says it reminds him of Microsoft which fell flat before it rallied. He believes that the internet company is a takeover candidate and identifies Comcast, Time Warner and IACI as potential buyers. One of Yahoo' s advantages is that it is one of the few internet companies, apart from Ebay and Amazon that has made it, but no one has as big a story as Google. Although Cramer believes that Yahoo will likely be taken over, he does not think it is a strong buy because he doesn't like Yahoo's fundamentals. On a side note, Cramer commented, "The rally is taking a breather, but it's the most impressive I have seen since 1991." In the past, companies issued stock to raise capital, but now many companies have enough cash to buy back shares. "This is a melt-up, the opposite of a meltdown," Cramer said. "Buyers are coming in the market and they are willing to pay more money to the sellers."
Related: Greg Wilder discusses a possible buyers for Yahoo!
Cramer acknowledges that "the need to speculate is ingrained in us and important," and that investors with some stability can have a portfolio that is 20% speculative. Qwest is coming up fast, and Cramer suggests buying some before it reports on the 31st; "these phone companies are cash machines." In addition, he thinks the broadband shortage could double Level 3 and Arena has "limited downside and a lot of upside." On a side note, Cramer said that the GDP number of 1.6%, which marks a slowing economy, is not bad news since it will keep "the Fed at bay."
Related: Ant&Sons considers Level 3 Communications as a possible takeover target for Google.
Mattel (NASDAQ:MAT) and Hasbro (NASDAQ:HAS): Although Mattel looks costly, Cramer says that it is a buy because there is a "major turn" going on at the company. He thinks HAS is a good holiday play.
Panera Bread (NASDAQ:PNRA): Cramer likes this company as a "casual trend dining stock."
Parker-Hannifin (NYSE:PH): Cramer doesn't think that this stock will reach its 52 week high again and suggests selling it.
Revlon (NYSE:REV): This company's balance sheet is "horrible" and its balance sheet is "quite weak," according to Cramer.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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