Jimmy Cramer going out on a limb this morning identifying his three favorite speculative plays. Usually Jimmy hems and haws and hedges and throws 10,000 lbs. of something against a wall and hopes some of it sticks so he can crow. But not today he is out there and we at The Shark Report will track it and see how great a guru he really may be.

Here is what he wrote:

"My three faves right now are Qwest (Q) , Level 3 (LVLT) and Arena Pharmaceuticals (ARNA) . Let me explain why these can work and work big here.

First, Qwest is turning around so fast that I think people don't even realize how strong the numbers are. The broadband revolution finally has hit the old-fashioned telcos with a vengeance. We saw the same thing with the BellSouth (BLS) and AT&T (T) quarters, and Qwest is gaining share and growing again. I don't think anyone realizes how much cash these companies can throw off.

Meanwhile, while lots of people want to play the growth of the Internet through an F5 Networks (FFIV) or an Akamai (AKAM) -- both very worthy choices -- I think the best way to play it is with Level 3. It's growing as fast as many of these companies when it comes to the Internet, at least, but it needs to fix its capital structure. It will, and the stock could double in 18 months when it does.

Finally, I like Arena Pharma because it has not one but two drugs in formulation, one for diabetes and one for obesity. It cut its revenue forecast this week and freaked everyone out. That's an opportunity. I don't like it because of its revenue, I like it for the approval of the drugs.

I think that these are among the best speculative plays out there and I thought that rather than just haphazardly mentioning them every other week on radio, I should just spell them out here."

I will update these on a regular basis as I am entitled to some amusement.

Opening morning prices as follows:

ARNA 15.41

LVLT 5.41

Q 8.61


Anonymous Anonymous said...

Honestly how much freaking money are you printing buying the lower dip and repeating everyday. Also are you backing down in volume as we continue to get extended just so when you are wrong and the market does fall the losses will be reduced? I know it sounds bad but one of these days, someday, or according to CNBC never, we will be beat by the sellers on the dip buys.

12:34 PM  
Blogger DAVID said...

I have been stopped out a few times this week on some day trades but overall plenty good. I use defined stops X points below pivots or support - but usually try to sell on high ticks- Problem is high ticks generally means mkt is going higher-

1:14 PM  
Anonymous Anonymous said...

Say it isn't so. Could this manipulated BS bull run be at an end??? Is it time to put Pom Poms Pisani back in his closet for a few months? I hope so...I've almost forgotten how to short stocks.

2:12 PM  

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