September 14th - LOGI TUNE HAR

Cramer started out by looking at the pin action off the good numbers from Best Buy this week. He recommended buying Logitech International SA (LOGI) Harman International Industries Inc. (HAR) Microtune Inc. (TUNE)

LOGI
Closing Price: $21.29
After Hours High: $22.05
Percent Increase at High: 3.6%
Price Level Off Point: $21.85
Percent Increase at Level Off Point: 2.6%
Trades on NASDAQ
Sector: Technology
Short %: 0.61%
Days to Cover: 2.2
% Held By Insiders: 6.39%
% Held By Institutions: 13.40%

TUNE
Closing Price: $5.71
After Hours High: $6.43
Percent Increase at High: 12.6%
Price Level Off Point: $6.03
Percent Increase at Level Off Point: 5.6%
Trades on NASDAQ
Sector: Technology
Short %: 7.44%
Days to Cover: 13.1
% Held By Insiders: 17.18%
% Held By Institutions: 43.40%

HAR is too rich for shorting in my opinion, but TUNE and LOGI have potential. Cramer was very aware that TUNE is a cheaply priced stock and knew that people will probably buy it before the other 2 picks. He said that it was very speculative and is doing an internal investigation on their own stock options. TUNE was also down today and had analyst coverage initiated on it with a neutral rating. Assuming these negatives on the stock are ignored by the Cramer buyers this looks primed for a Cramer effect drop tomorrow at the opening bell. Cramer even said that if it was bid up that the hedge funds would be shorting it. Since TUNE has broken $6 we can't look for that psychological number to find a top for the price tomorrow morning. There is a chance that $6 could represent a floor for the stock tomorrow morning if it does open higher, but with the negatives surrounding the stock I would be a bit surprised if it held $6. LOGI had a pretty good jump tonight and it too broke a psychological price after hours but has fallen below it now. In this case I don't think the price will break $22 on the initial spike tomorrow morning but could come close and have a quick drop, but if it does break it then I would leave it alone.

Next Cramer looked at Costco Wholesale Corp. (COST) and to see if it is a broken stock or a broken company. The reasons for the recent decline are 1) missing their same stores sales growth numbers 2) revised down earnings guidance 3) Consumer spending is down. Not surprisingly Cramer said that COST was just a broken stock and not a broken company. COST closed today at $49.91 which is too expensive to create enough of a spike and drop tomorrow in my opinion.

Finally Cramer had his Sell Block segment where he tells us of any changed opinions he may have. He suggested selling Goldman Sachs Group Inc. (GS) as the stock has seen a nice run up. He then suggested sticking with Legg Mason Inc. (LM) and said it could go to $120. Next he looked at Gap Inc. (GPS) and was bearish on the stock even after a recent upgrade. Finally he said to sell Hansen Natural Corp. (HANS), another stock that was upgraded and Cramer said to sell into this potentially short term strength.