A visit was made to the “Wall of Shame” too check on those CEOs that “If they just vanished, leaving no one at the helm, their stock could go higher.” Alcatel Lucent’s (ALU) CEO Patricia Russo was on the top of the list last we were here. They missed a third time on profits and Russo was told to come up with an emergency plan to save the financial situation here. The deadline for the plan is said to be one month but if she leaves ALU would be “better off” in Jim’s view. Second on the list is Marsh & McLennan’s Companies, Inc. (MMC) Michael Cherkasky. Management at MMC is in “utter disarray.” The promised turnaround is taking much longer than expected as well from Cherkasky. If he leaves or if the company is broken into three divisions the stock could move higher. Split up the company is worth some 14% more according to Cramer.
SHAME VIDEO

“A hot, sizzling biotech name” in BioMarin Pharmaceutical Inc. (BMRN) was brought to us today as the “Speculation Friday” pick. This is the replacement for Savient Pharmaceuticals, Inc. (SVNT). BMRN should be bought soon but Jim told us to wait a week for it to come in. They have a big drug that is a big catalyst that could take the stock higher. It treats phenylketonuria, an inherited metabolic disease that there is currently no drug out there to treat it. This drug is expected to cost $25,000 a year but as its the only one on the market that seemed right. Pending drug approvals always make the companies speculative but it should get approval by the end of the year. The approval is a big pay off if it happens if it does not you will get hurt so it is a risky play.
SPECULATION VIDEO

Year end price target for the Dow from Jim is 14,538 and it is 653 from hitting this number. The number was created from doing a bottoms-up analysis of Dow stocks. Some have exceeded price targets like Exxon Mobile Corporation (XOM), Verizon Communications Inc. (VZ), General Motors Corporation (GM) and The Procter & Gamble Company (PG). Others like McDonald’s Corporation (MCD), Alcoa Inc. (AA), The Coca-Cola Company (KO) and Merck & Co., Inc. (MRK) are at around his individualized targets. Wal-Mart Stores, Inc. (WMT), Home Depot, Inc. (HD), Pfizer Inc. (PFE) and Johnson & Johnson (JNJ) Cramer expects to do nothing. Leading the charge to his price target will be four names: The Boeing Company (BA), E.I. du Pont de Nemours & Company (DD), Caterpillar Inc. (CAT) and Altria Group, Inc. (MO). These are the four horseman to 14,538.
GAME PLAN VIDEO

Jim told us he was wrong to profile GigaMedia Limited (GIGM) as an ISP on a recent Lightning Round. Amazon.com, Inc. (AMZN) has been “marked up heavily” revenue id is high, costs are low and a “lot is going to fall on the bottom line” with the stock.
MAIL VIDEO

The Friday morning upgrade of Dean Foods Company (DF) should have us considering Kraft Foods Inc. (KFT) and ConAgra Foods, Inc. (CAG) according to Cramer. KFT could move to $38 or $39 and CAG could look at $30. Jim likes General Mills, Inc. (GIS) as well.
STOP VIDEO

We were told to go long KB Home (KBH) and short the housing sector index (HGX) to start next week. Jim is not shorting individual housing stocks anymore as they are all too heavily shorted. He expects the HGX to bounce at the beginning of next quarter as people like to buy the losers of the quarter. The index includes Standard Pacific Corp. (SPF) and Beazer Homes USA, Inc. (BZH). The balance sheet at KBH is good and they are good until 2014. We were told that a way to play the HGX would be to buy calls or common KBH and short the HGX. Yesterday we had CEO’s from Freddie Mac (FRE) and Fannie Mae (FNM) saying that 2008 is a write off, and this is far more bearish than he has been.
CONFIDENTIAL VIDEO