Cramer's #2 Speculative Stock for 2007

Tonight Cramer continued his quest of delivering his favorite TOP 3 SPECULATIVE STOCKS FOR 2007.  Cramer’s #2 Speulative stock for 2007 is Rite Aid (RAD). 

Cramer has been a RAD fan for about 30% now as it has been rising and he’s been positive on this name for weeks now.  He said you definitelt can’t play this now after hours and he reminded about diversifying in speculative names.  Cramer thought about Blockbuster (BBI) and Six Flags (SIX), but both had run up too much.  Cramer said the 10 analysts have 3 buys, 3 holds and 4 sells; so it is unloved and should be valued higher according to him.  He says do not buy it until Monday afternoon so you don’t get your head handed to you.  He likes the 110 store openings or relocations planned for 2007.  He thinks they are immune to Wal-Mart’s (WMT) drug plan, unlike CVS (CVS).  He likes the inner city theme for Rite Aid and he interviewed the CEO briefly.  Mary Sammons, CEO, said the company will reach 12.5% and more next year in private branding of OTC drugs to expand margins.  The relocation stores will post strong double digit gains for a few years according to her.  Cramer said he is perplexed as to why no one hears about her as a great CEO.

Cramer’s #3 SPECULATIVE STOCK FOR 200 was Savient Pharma (SVNT) for its gout drug in Phase III trials.

Below are his picks from Wednesday and Thursday for Growth Picks for 2007:

1)  New York Stock Exchange (NYSE).
2)  Apple (AAPL).
3)  Cisco Systems (CSCO).

If you want to read through to the top VALUE PICKS for 2007 that Cramer gave on Wednesday night, here is the list:

1) Altria (MO)
2) Goldman Sachs (GS)
3) Halliburton (HAL)

by Jon C. Ogg