Bloomberg News

Jim Cramer: Allegheny Technologies, Boeing, Apple Computer

December 01, 2006

Allegheny Technologies Inc. (ATI:US), a seller of titanium and stainless steel, will keep benefiting from aircraft industry demand, Jim Cramer said on his ``Mad Money'' television program on CNBC.

Cramer, a market commentator and former hedge-fund manager, said Boeing Co. (BA:US) had locked in $2.5 billion worth of titanium at current prices, showing that the aircraft maker is betting that prices will rise.

In response to callers, Cramer recommended Boeing stock on Airbus's difficulty making planes and said he thought Apple Computer Inc. (AAPL:US) would rise to $120 a share.

Cramer said gold miners may rise because investors believe that the dollar is plummeting and commodities can rise. Because of that widespread belief, he recommended Yamana Gold Inc. (YRI)

While Barrick Gold Corp. (ABX) and Newmont Mining Corp. are growing too slowly and Cia. de Minas Buenaventura S.A. is too risky, Yamana's work in the relatively stable country of Brazil makes it a good bet, he said. For a more speculative stock, he recommended Crystallex International Corp.

Lundin Mining Corp. (LUN) is another company to protect against the weak dollar, Cramer told a caller.

Top performers on the Standard & Poor's 500 Index coming into December tend to continue to rise through the month, Cramer said. On that basis, he recommended Allegheny Technologies, Nvidia Corp. (NVDA:US), OfficeMax Inc. (OMX:US), Big Lots Inc. (BIG:US) and Nucor Corp. (NUE:US)

He recommended VF Corp. (VFC:US) because apparel companies can still grow and said he would buy Timberland Co. first thing Monday morning because he thinks it could be an acquisition target for VF Corp.

Cramer recommended Devon Energy Corp. (DVN:US), Sears Holdings Corp. (SHLD:US), USG Corp. (USG:US), Cisco Systems Inc. (CSCO:US), PetSmart Inc. (PETM:US), Goldman Sachs Group Inc. (GS:US), Allegheny Technologies Inc., Coldwater Creek Inc. (CWTR:US), Dynegy Inc. and Johnson & Johnson (JNJ:US) in response to questions during the show's ``Lightning Round'' segment.

He also told viewers to avoid Swift Energy Co. (SFY:US), Abercrombie & Fitch Co. (ANF:US), JDS Uniphase Corp. (JDSU:US), China Mobile Ltd. (941), TiVo Inc. (TIVO:US), Select Comfort Corp. (SCSS:US), Sealy Corp. (ZZ:US), Tempur-Pedic International Inc. (TPX:US), PetMed Express Inc. (PETS:US), TD Ameritrade Holding Corp. (AMTD:US), Schnitzer Steel Industries Inc. (SCHN:US), Burlington Northern Santa Fe Corp., J.C. Penney Co. and Abbott Laboratories. (ABT:US)

He said he owns Johnson & Johnson for his charitable trust.

To contact the reporter on this story: Steven Bodzin in San Francisco at sbodzin@bloomberg.net.

To contact the editor responsible for this story: Aimee Sullivan at asullivan@bloomberg.net.


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Companies Mentioned

  • ATI
    (Allegheny Technologies Inc)
    • $41.24 USD
    • 0.23
    • 0.56%
  • BA
    (Boeing Co/The)
    • $127.92 USD
    • 1.88
    • 1.47%
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