“Mad Money” Cramer Summary

Posted by Blain Reinkensmeyer
June 21, 2006 at 8:14 pm

It felt good to watch Jim Cramer’s “Mad Money” today after being gone for the past six days. I enjoy writing recaps of his show everyday, and you deserve them!

Jim started the show out by making a call for us investors to get our hands into Research in Motion (RIMM). RIM is the maker of the blackberry device and the stock has had two horrible quarters but will report its fiscal year 2007 on June 29th. Their new model, the 8700 will soon be offered by Verizon (VZ), which when this happens Jim says sales will soar. Hold the stock until you see the bandwagon take off with hype, then sell your position.

After that segment, Jim started talking about how companies like General Electric (GE) and Siemens (SI) have been buying medical-equipment companies that are all alike. In June Intermagnetics General (IMGC) merged with Philips Electronics (PHG). Also recently Diagnostic Products (DP) was bought by Siemens. Looking ahead now, Jim told us today that their may be some companies to speculate on:

Viasys Healthcare (VAS) was the first stock that Jim mentioned. The company develops a wide variety of medical and surgical products, and is a buyout target for any company that wants more business related to the lungs.
Next Jim recommended Vital Signs (VITL) as the company is sitting on a “hoard of cash”.
Sirona Dental (DIRO) just recently merged with Schick this past Tuesday and was the third stock on this list.

The bottom line, “Big conglomerates want to make aquisitions in diagnostics companies; these three could be great takeover candidates.”

Lightning Round

Some of the companies/stocks Jim was bullish on were (in no order) Chevron (CVX), Rite Aid (RAD), Hilton Hotels (HLT), KB Homes (KBH), and Trinity (TRN).

Some bearish picks were Ford (F), Toll Brothers (TOL), Morgans Hotel (MHGC), Alliance Resource Partners (ARLP), and American Railcar (ARII).

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