Cramer also thinks that Blockbuster (BBI) is still a buy even though it is up 39% since his November recommendation. The drop off at the stores feature is allowing the stock to compete against Netflix (NFLX) because they now have 2.2 million subscribers to the online service instead of the lofty 2 million they estimated. The company is looking to double their online access members again. The company used to be a laughing stock, butthey are winning. They recently sold off Rhino Games to GameStop, and he thinks this stock is going up and that estimates are too low. Cramer even thinks that 2007 will be the year of Blockbuster. He even got to interview John Antioco, its Chairman & CEO. Antioco said that dumping late fees and fixing stores all helped. Antioco feels his goals are attainable, and he thinks the value of the game store could be higher in the UK than what Cramer thinks. He has also been targeting customer satisfaction, and is happy that it is going up. Cramer thinks it is going much higher.
On tonight’s MAD MONEY on CNBC, Cramer first reviewed Sony (SNE-NYSE/ADR) as a value and break-up play. The company could trade at $61 to $72 instead of $45 today if the broke themselves up, and it could run a lot just on the hint of a turn. Here are his full comments.
Cramer also noted again that Google (GOOG) is cheap, and he thinks it will go to $513 by next Wednesday.
Jon C. Ogg
January 11, 2007
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