On tonight’s MAD MONEY, Cramer reviewed some stock basics on risk profiling. Cramer reviewed non-speculative companies for growth and value. You go to the most household names in the business: Cramer noted names that are steady household grwoth companies are Time Warner (TWX) or Comcast (CMCSA) you look at for capital appreciation.
In this growth and "MAD MONEY" group he likes both: TWX has a small dividend but that isn’t the focus of the company and they are trying to boost the share price through buybacks. Cable is the best asset there and cable will have accelerated revenue growth in 2007. The growth this year made Comcast the best performer. He thinks you have to look at the best growth prospects ahead, and Cramer says Comcast has better cable growth propspects. Cramer also likes the management at Comcast. BUT…Cramer says he still has to go with Time Warner (TWX) as the pick for 2007. He said even though Comcast may be better, TWX has more upside because of the negativity still there and the bar for Comcast may be too high. Pasron’s spin-off of cable may be sooner rather than later according to Cramer. He said this is no offense to Comcast because they are a better company, but they have also had a bigger run in the stock.
TWX shares are up 0.75% at $21.53 after-hours. If that holds it will be another new multi-year high.
Jon C. Ogg
December 13, 2006