September 13th - LVLT

Cramer started out by talking about youtube.com and how to profit from it since it isn't a publicly traded company. Cramer said the companies that might buy youtube is not the way to make money off it. Instead Cramer said to buy Level 3 Communications Inc. (LVLT) as they are going to provide the broadband to be the backbone of youtube.


Closing Price: $4.55
After Hours High: $4.97
Percent Increase at High: 9.2%
Price Level Off Point: $4.77
Percent Increase at Level Off Point: 4.8%
Trades on NASDAQ
Sector: Technology
Short %: 8.3%
Days to Cover: 3.0
% Held By Insiders: 8.58%
% Held By Institutions: 61.20%
Average Volume: 26,073,600

A big volume low price stock that is sure to get plenty of attention. The stock is only up slightly from the announcement from youtube and was at $4.08 at one point Monday. The fact it is under $5 will take a few short sellers out of the game since some brokers won't allow shorting of stocks under $5. I would expect to see a typical Cramer effect drop at the open and wouldn't be surprised if the stock approached $5 but don't think it will break $5 early in the day. If it does break $5 in the pre-market or right at the bell I would personally stay away from it. Update: So much for my "guess" that this may approach $5 tomorrow morning, as the stock has already come close tonight. I am still dealing with delayed updates and it is pain in the butt. That problem should be fixed in the coming days though. This does show that the $5 psychological price barrier is in play right now and will be the number to watch tomorrow.

Cramer looked at KRISPY KREME DOUGHNT (KKD) as an example as to know when to sell a stock. The company hasn't filed financials for the last 2 years, and had its COO and CFO leave in the same year, was found to have earnings manipluation. Cramer said if your stock has any of these signs then to sell ASAP.