Game Plan for the Week of June 11
Cramer can recommend any number of stocks for next week’s Game Plan, but in the end their success depends solely on the 10-year Treasury note, he says.
If the bond continues its downward trend, the yield will grow, making it a more attractive investment vehicle. The yield is already over 5%, and if it climbs even higher Cramer thinks investors should steer clear of stocks.
But if the 10-year gives back its gains on Monday, that paves the way for companies like Lehman Brothers, Bear Stearns and Goldman Sachs to earn Home Gamers some money. All three financials report next week, and Cramer expects great things.
There might be some buys found at Goldman’s healthcare conference next week. Gilead , Hologic and MedcoHealth Solutions are all worth a look, especially Medco, which recently pulled back.
Cramer’s bullish on Cisco Systems , Level 3 Communications, Garmin and Ciena, all of which will speak at a Bear Stearns meeting next week. He’s also got an eye on a J.P. Morgan conference, where Chicago Bridge & Iron and Allegheny Techech will present.
Bottom Line: If you see that piece of paper go up – and Cramer will let you know if it does – then you've got your green light to buy the Lehmans and the Goldmans and the healthcare stocks, and the Level Threes and the Cienas. If it doesn't go higher, you don't buy.
Jim's charitable trust owns Goldman Sachs and Hologic.
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