Cramer: 3 Potential Bargains Under $10

(Click for video linked to a searchable transcript of this Mad Money segment)

If any stocks have been beaten up, it's these. But after taking a hit, Cramer thinks they may come back swinging.

That's a lesson Cramer learned from Groupon, a stock Cramer despised. "I thought it was too much hype versus the reality of the business model. All the way down I told people to jettison this stock because I didn't like management, especially former CEO Andrew Mason," Cramer explained.

However, at the end of February a management shake-up ended with some new faces in the corner office; Eric Lefkofsky and Ted Leonsis were named as replacements.

"I didn't know Lefkofsky, a Chicago venture capitalist, but Leonsis was someone I had dealings with when I started Since he took over, the company's been busy cleaning up its act, retaining customers, building a good mobile business and now it's got a restaurant reservation tool," Cramer said.

Unfortunately, Cramer failed to anticipate the positive impact the new leadership would have on shares and therefore he never recommended the stock as a turnaround story. That chafes Cramer because the stock has gained about 100% since late February.

Cramer hates missing turnarounds.

Therefore he's identified 3 other stocks, trading in the single digits, that he thinks may be at or near similar points as Groupon, last February.

Richard Drury | Getty Images


"Last night we learned that Don Mattrick, the former head of Microsoft's entertainment division is taking over this troubled gaming company from Mark Pincus, another leader that couldn't lead," Cramer said.

Cramer thinks Mattrick is a reason to buy Zynga.

"Mattrick's at the top of his game. Microsoft's entertainment division is a huge success and the only reason you don't know that is that the rest of Microsoft is so darned big that even this stellar business with 40 million subscribers to XBOX games, gets lost in the shuffle," he said.

And Cramer added, Mattrick is getting accolades from people like Jeffrey Katzenberg, the CEO of Dreamworks animation and Reid Hoffman, the co-founder of LinkedIn.

"Hoffman and Katzenberg? Both praising this guy? If this were really the Titanic of gaming, believe me these guys wouldn't be making these terrific comments," Cramer said.

Due to these and other reasons, the Mad Money host thinks the company's fortunes are about to take a turn for the better. And despite sharp gains on Tuesday, "It's not too late to buy," Cramer said.


"There had been talk about Nokia tying up with Microsoft," Cramer explained. "I doubted it because Nokia had a sticky relationship with Siemens that might have proven an obstacle to any Microsoft purchase. This week, though, Nokia bought out its partner for $2.2 billion. So much for that obstacle. I keep thinking how cool Nokia could be when paired with Skype and that I think this one makes too much sense not to happen," Cramer said.

Around $4, the Mad Money host believes Nokia now may be worth a flier.

"I count myself as no longer a seller and frankly I like the speculative situation. When there's this much smoke, there has to be some fire."

Read More from Mad Money with Jim Cramer
Cramer: Easy Money Over, Time to Ring the Register
Cramer: Don't Get Dinged by Market Blind Spot
Cramer: This Stock Gained 200% YTD


Cramer finds BlackBerry intriguing but isn't ready to pull the trigger quite yet.

"I think the guy running the show, Thorstein Heins, seems like a real nice guy, but I don't know if that's really what we are looking for here. "I suspect someone who can come in and break up the company into swallowable parts might be more worthwhile," he said .

Therefore, Cramer suggests keeping a close watch on this stock. "Call me when it finds some new leadership and you'll find me telling you to buy that one, too."

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the "Mad Money" website?