Too Much Complacency
Nobody cares about Motorola (MOT), Land Banks eh… I got to figure out how to manage the pain of complacency. You are way too complacent. This market has broken your heart too many times. I know what this is about. MOT, fool me once, fool me twice, how about fool me 978 times. That’s what is going on. You know what, I need to shape you up and get you out of the complacency. There is a GIANT amount of money to be made; it just isn’t made at the velocity that it used to be.

Here’s the deal - if you buy MOT now and hold it for 6 months, I am entirely confident that this $17 dud will blossom into a $22 thing of beauty. It’s selling at 17x earnings even though the business is growing at 15% and its gross margins are a fraction of what they are at Nokia and Samsung. It’s got the best management in the industry. Ed Zander you rock. Buying back hand over fist too. Don’t forget the iTunes phone starts in the next couple of weeks. You buy MOT now, I’m making it the stock of the week. I wish I could make it the stock of the next six months but that’d be boring. BULL.

Top 10 Land Banks:

1. Toll Brothers (TOL) Up 12.6%
2. Maui Land and Pineapple (MLP) Up 11.3%
3. EnCana (ECA) Up 9.9%
4. Texas Pacific Land (TPL) Up 9.1%
5. St. Joe Company (JOE) Up 6.9%
6. Tejon Ranch (TRC) Up 6.5%
7. Temple Inland (TIN) Up 4.7%
8. International Paper (IP) Dn 0.4%
9. Weyerhaeuser (WY) Dn 0.7%
10. Bowater (BOW) new

Can you believe how stupid this market is?

Metris, MXT, is still only at 13.46 given that Providian is going out at you should be willing to pay up three more dollars for Metris. I’m not saying that my facts are wrong in ever single case. I’m saying that the complacency would be my enemy at my hedge fund. You can just go online, buy the land banks, buy the MOT, buy the Metris. Bottom line: The complacency is giving you an AMAZING discount that you are so lucky to have. There is no way that we can be this complacent even six months from now.

Q: Should I move into AXP as the economy slows instead of focusing on something like MXT?

A: I think MTX on earnings could be higher and also because of a bid.

Q: Are Handset Manufacturers Low Growth or Cheap Stocks?

A: I regard 15% as growth. MOT has 10% margins, Nokia and Samsung have higher. Even if they turn them out the same way MOT should be better. BOTTOM LINE IS THIS: The business of stocks is awful. When you tell someone, hey, you ought to look at MOT, that person says yeah, just like the CSCO, the SUNW, the MSFT. I need people to take advantage of the market’s complacency. I think that MTX, the land banks and the MOT are right here.

Let’s talk about Google and how it passed all other big media companies in terms of market cap

It’s bigger than Time Warner (hallelujah!), Viacom (hallelujah!), Disney (hallelujah!), News Group (hallelujah!) and you know what? It should be even bigger. We care about earnings. The reason GOOG is in the HOV lane and TWX is in the break down lane is that GOOG could earn as much as 9.40 in 2007. Jordan Rohan came out with that number. DO I endorse it? No. I’m sticking by my $350 target because I don’t care as much about 2007 as 2006. I think in 2006 this sucker will earn $7 and should sell at 50x earnings. How do we get that stuff? 50 multiple x $9.40 earnings = $470 a share.

Let’s distinguish between what Henry Blodgett did and what I’m doing. Isn’t it better to actually be right. All we are doing is solving for x here on Wall Street. We are trying to figure out what that earnings multiple should be. I think Google should sell at 50x earnings. Yahoo sells at 90x earnings. The now, not as great as it used to be EBAY sells at a higher multiple. All we are doing is arithmetic mixed with a little algebra. When we solve for X we get a stock that is STILL too cheap. BOTTOM LINE: I need you still to buy Google, it’s still too cheap, it goes higher.

On May 23, 2005 Cramer Predicted Google would rise to $350.

Q: Isn’t it time to ring the register on Google (GOOG)?

A: Here’s the thing: Right now every major mutual fund in the country is saying that GOOG has been a hot stock. Can I afford to show my moron board of directors… GOOG could go up almost every single day until the quarter. Go ahead and sell a little but I think we are going to $350 by the end of this quarter!

Let’s talk about XMSR vs. SIRI

I think a lot of people have been giving the edge to SIRI. I think there is a difference between the two that isn’t talked about enough. The technological difference and that goes to XMSR. The tech is a year ahead at XMSR. SIRI is catching up to XMSR but XMSR should leap ahead again next year. I think ultimately, people will be carrying the XM with them everywhere. Bottom line: Technology matters, I think XMSR is better than SIRI.

Q: I’m long XMSR, should I also be short SIRI to play them evening out?

A: SIRI is valued at 7.7 billion, more expensively than XMSR. What Dave is talking about is something that I’d be doing at the hedge fund right now. I’d sell the SIRI at 6, hope it goes to 5 buy the XMSR in the 30s and hope it goes to 40 then close the trade out buying the SIRI and selling the XMSR. That said, I’m never going to recommend shorting on this show because with unsophisticated traders shorts can go to infinity. But, I like the concept.

Cramer talks with Richard Perlman, TurboChef Technologies (TCF) Chairman:

Exclusive supplier of ovens to Subway Franchises.

Cramer: You did a secondary in February and the stock sunk like a stone. What went wrong here?

Perlman: Obviously we took part in the market sell off. Subway is going well. We’re in conversations with over 30 of the major chains in the United States. Because of the success of Subway and the fact that they are up 10% same store sales system wide everyone is taking notice.

Cramer: Tell me where you are with the Starbucks chain.

Perlman: Signed a master supply agreement with Starbucks in December. In April we rolled out over 100 locations in Washington D.C. We are very optimistic that this will be an ongoing and successful, meaningful relationship for TurboChef.

Cramer: The short sellers- do they know anything we don’t know?

Perlman: It’s difficult for us to have a continuous flow of news with the major chains being very secretive of their plans. We can tell you that we are highly confident that there are going to be multiple additional major contracts in the current year.

Cramer Summary: If and when they announce a Starbucks contract and a Panera contract you are going to wish that you bought that stock at 14. I sure wish that I did.

Goldman Sachs

You worried about the proprietary trading? Just don’t use them. The institutions that trade with Goldman don’t have to trade with Goldman. There are plenty of other firms if they believe they aren’t getting good prices because Goldman is favoring themselves then they should switch firms. If you generally believe that Goldman is favoring the partners then what the heck are you doing? How stupid can you be? The bottom line is: You think that Goldman ain’t helping you? Take your business to Morgan Stanley.

Disclaimer: I AM NOT JIM CRAMER. I sometimes write the summary in first person because my brain doesn't quite move fast enough to process and type at the same time, so please excuse that. This blog has no affiliation with Jim Cramer, CNBC, or Mad Money. If you'd like to contact Cramer email him at madmoney@cnbc.com, or call 1-800-743-CNBC. This is done for you and I to be able to better track and follow Cramer’s comments. The show goes by quickly so I try and catch as many keywords as possible for each stock because of this, ACCURACY IS NOT GUARANTEED but is however strived for.

NOTE: I've added today's closing price to each of the stocks listed below.

MOT - 17.92 - Motorola, Inc. - Like it here - see comments earlier in show.
MTX - 67.81 - Minerals Technologies Inc - Like it here - see comments earlier in show.
TOL - 94.98 - Toll Brothers, Inc. - One of top 10 Land Banks
MLP - 40 - Maui Land & Pineapple Co. - One of top 10 Land Banks
ECA - 36.26 - EnCana Corporation (USA) - One of top 10 Land Banks
TPL - 173.01 - Texas Pacific Land Trust - One of top 10 Land Banks
JOE - 78.88 - The St. Joe Company - One of top 10 Land Banks
TRC - 52.5 - Tejon Ranch Company - One of top 10 Land Banks
TIN - 36.41 - Temple-Inland, Inc. - One of top 10 Land Banks
IP - 32.72 - International Paper Company - One of top 10 Land Banks
WY - 64.74 - Weyerhaeuser Company - One of top 10 Land Banks
BOW - 32.49 - Bowater Incorporated - One of top 10 Land Banks
BOBE - 23.83 - Bob Evans Farms, Inc. - No to this.
SSW? - - Shopzilla - Don't play there.
CMGI - 2.27 - CMGI Inc. - Exactly what we're looking for - that means not good enough. Now, I don't mind CMGI at 2.15 but I think the stocks going to go back to $2 and then start all over again.

The Lightning Round:

DWA - 28.49 - DreamWorks Animation SKG, Inc. - Bear - sick of those guys. They should cancel that secondary right now
NEM - 37.61 - Newmont Mining Corporation - No longer a fan after that bomb of a quarter. Get GG instead.
CCK - 15.33 - Crown Holdings, Inc. - No, it's day has come and gone. I no longer like the fastener and bottle cap group.
GERN - 7.4 - Geron Corporation - Ring the register - too much in the news, not enough earnings, I could take it or leave it
CBRL - 40.63 - CBRL Group, Inc. - I want out of that stock - BEAR
OCR - 38.13 - Omnicare, Incorporated - Pharmaceutical services - BULL - that stock is for me
ADM - 20.15 - Archer Daniels Midland Company - Sell - rather be in Bunge which is a better company (BG)
TE - 17.72 - TECO Energy, Inc. - BULL - this is a winner - one of my absolute favorite utilities
BEAV - 14.48 - B/E Aerospace, Inc. - This stock is in total bull market mod e- I like this company, It's mid cycle and I think its got two more years left
SUNW - 3.62 - Sun Microsystems, Inc. - SELL SELL SELL SELL SELL SELL SELL SELL SELL
UTX - 106.95 - United Technologies Corporation - When that split goes in I think you're going to pick up another 3% - BULL
JBX - 41.58 - Jack in the Box Inc. - No they've got a good formula, I like SONC, MCD and don't be depressed about the downgrade for DRI.
SONC - 33.12 - Sonic Corporation - Like this.
MCD - 30.41 - McDonald's Corporation - Like this.
DRI - 32.8 - Darden Restaurants, Inc. - Like this.
URBN - 56.04 - Urban Outfitters, Inc. - Jump out the window - that's me because I sold too earlier. That's stock is going higher.
DELL - 40.68 - Dell Inc. - Ehh. - minor bull market mode - rather own INTC than DELL - BULL
COH - 32.55 - Coach, Inc. - BULL - luxury good markers
JWN - 64.01 - Nordstrom, Inc. - In bull market mode all good
HAR - 81 - Harman International Industries Inc./DE/ - In bull market mode all good
CZR - 21.7 - Caesars Entertainment, Inc. - Deal should close in the next five days. When HET finishes the merger by the end of the week that stock is going to go higher.
HET - 72.17 - Harrah's Entertainment, Inc. - Deal should close in the next five days. When HET finishes the merger by the end of the week that stock is going to go higher.
HW - 34.65 - Headwaters Incorporated - That is a register ring - not in to the alternative energy stocks
WPTE - 17.39 - WPT Enterprises, Inc. - If they can't money in this market they are never going to make money
FDC - 39.85 - First Data Corporation - Bull - I think some of the buyers are coming back
TNP - 39.62 - Tsakos Energy Navigation Ltd. - I'm not a buyer and not a buyer of any of the bulk oil tankers, they are all too high - BEAR
AAPL - 37.92 - Apple Computer, Inc. - Ipod no longer in short supply - BEAR - do I really care whether its an Intel or IBM chip in there? Give me a break.
MO - 67.17 - Altria Group, Inc. - Waiting on a judicial decision. I literally hope that the judge rules against them so I can buy more lower. BULL.
AWA - 6.43 - America West Holdings Corporation - JBLU, AMR, Continental will report better than expected earnings my sources tell me - I'd rather see you in those that AWA
AX - 38.75 - AX - Bull - we like that stock
SMA - 22.5 - Symmetry Medical Inc. - If you're going to do orthopedic manufacturing I'm only blessing ZMH and secondarily SYK.
ZMH - 78.35 - Zimmer Holdings, Inc. - Blessing this for orthopedic manufacturing
SYK - 48.6 - Stryker Corporation - Blessing this for orthopedic manufacturing
SEAC - 7.52 - SeaChange International - SELL SELL SELL SELL SELL SELL SELL SELL SELL - I hate those guys
MHS - 50.69 - Medco Health Solutions Inc. - BULL - full speed ahead
JNPR - 25.05 - Juniper Networks, Inc. - BEAR and BULL - kind of like a bulear.
VRSN - 32.4 - VeriSign, Inc. - BULL - like it very much
VOD - 24.68 - Vodafone Group Plc (ADR) - Don't like it as much okay here
VRTS - 24.82 - VERITAS Software Corporation - like it
DNA - 80.57 - Genentech, Inc. - I think the stock is going higher - BULL - I like it no matter what day you bought it
AMT - 18.54 - American Tower Corporation - Ring the register - we've learned our lessons with these stocks
APC - 76.57 - Anadarko Petroleum Corporation - BULL - threesome for anyone who thinks that Natural gas can't be held down much longer.
DVN - 47.72 - Devon Energy Corporation - BULL - threesome for anyone who thinks that Natural gas can't be held down much longer.
ECA - 36.26 - EnCana Corporation (USA) - BULL - threesome for anyone who thinks that Natural gas can't be held down much longer.
NWS - 16.73 - News Corp Deleware Cl B - BULL - remember GOOG will probably be twice as big as NWS by the time it gets to 20
AMG - 67.6 - Affiliated Managers Group, Inc. - BEAR - got Spitzeritis as Spitzer has gotten too it
SFD - 28.45 - Smithfield Foods, Inc. - I like this but BORK is going to take money from SFD - wait till the end of the week then buy it
PLUG - 6.05 - Plug Power Inc. - I have nothing good to say about it
RAD - 4.07 - Rite Aid Corporation - Come on - best of breed - get into WAG - BEAR
PPG - 65.37 - PPG Industries, Inc. - Bear - too cyclical for me

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