Mad Money: Game Plan: Dow to 14,500 - Game Plan

FEATURED SLIDESHOW

  Who Is The Worst CEO?
Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
  nominations.

RECENT POSTS

Get stock and market information from Mad Money's Jim Cramer sent to your mobile phone.

Road Rules

Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.

Watch the Videos

Text Size

Oct.01

11:02 AM ET

Monday, 1 Oct 2007

Game Plan: Dow to 14,500

Posted By:Tom Brennan

Topics:Dow Jones Industrial Average | Stock Market | Stock Picks

Sectors:Financial Services

Cramer is still confident that the Dow Jones Industrial Average will reach his year-end target of 14,548. Eight stocks in particular, he said, should get the index there.

Interest-rate cuts should give a much-needed boost to the financials, which have been “the big anchor holding the Dow back,” Cramer said. Lower rates should also help out the consumer-dependent American Express [AXP Loading... () ]. American International Group [AIG Loading... () ], JPMorgan Chase [JPM Loading... () ] and AXP could see a jump of 10%. Citigroup [C Loading... () ] could pop $10 on the firing of CEO Chuck Prince alone.

The other four companies all benefit from another monetary decrease, though it seems this one is not as popular as a rate cut. Cramer expects the weak dollar to do wonders for Caterpillar, DuPont, Boeing and Altria.

DuPont [DD Loading... () ] makes chemicals that can be bought from other places in the world, but the lagging U.S. currency makes buying from DD more attractive.

Cheap American cigarettes should boost sales at Altria [MO Loading... () ]. And the company’s breakup could add 20 points to the stock in the next six months, said Cramer, who likes the yield and the growth characteristics of Altria.

According to Cramer, Boeing [BA Loading... () ] could jump $15 when the Dreamliner finally ships. And now that Caterpillar [CAT Loading... () ] is starting to be recognized as a worldwide machinery company and not one simply levered to housing, Cramer expects a good quarter.

Click for the rest of tonight's show

“DuPont, Altria, Boeing and CAT - They will be the four horsemen that take us to Dow 14,500,” Cramer said. “If I were you, I would pull the trigger on all four.”

Jim's charitable trust owns Altria, American International Group, Caterpillar and Citigroup.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

Tools:

Print Email

Previous Post Back to Main Page

ADD COMMENTS