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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.
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Nov.06
10:20 AM ET
Tuesday, 6 Nov 2007
Cramer’s Comeback Kids: NCR

Convenient cash is a First World phenomenon. It’d be hard for a lot of Americans to imagine traveling more than a few blocks without seeing an ATM. But that hasn’t been the case in other countries.

Until recently anyway. The rise of a middle class in the former Soviet satellite states, China, and even Africa means people have more money to spend, and they want it when they want it. That’s where NCR [NCR  Loading...      ()   ] comes in.

The former home of Hewlett-Packard’s [HPQ  Loading...      ()   ] Mark Hurd is the leading manufacturer and designer of ATMs, electronic cash registers, scanners and all the supplies and services that go with these machines. So as the developing world develops, Cramer said, it wants more NCR-style technology to makes its life easier.

And that means investors might want NCR stock. The company is among the greatest plays on this international trend, Cramer said, and that’s one reason he thinks it’s such a great buy. Already 75% of NCR’s ATM sales come from outside the U.S. – and there’s plenty of room for growth. Eastern Europe has only 500 ATMs per 1 million people. China has less than 100 per 1 million.

NCR wasn’t always a Cramer favorite. He highlighted the company on Monday’s Mad Money as one of his favorite comeback stocks. It’s company that used to underpromise and underdeliver, but not anymore. When NCR reported numbers Oct. 31, it blew away the earnings per share estimate by 13 cents, sales came in $100 million higher than expected, and then the company raised guidance.

The catalyst for this stock, Cramer said, is an analyst meeting on Dec. 6. He’s expecting NCR to report a bullish story about internal growth and a successful spin-off of Teradata, which was part of the reason for the quarter’s great results.

NCR also has a buyback planned, and Homegamers know how much Cramer loves a buyback. NCR will repurchase $583 million worth, or about 11% of the shares outstanding.

Between the strong international growth, the improving fundamentals, and the spin-off of Teradata, Cramer thinks there are too many reasons for Homegamers to not be in NCR before that Dec. 6 analyst meeting.



Jim's charitable trust owns Hewlett-Packard.

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