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Friday, October 20, 2006

October 20th - DEO MNST

Cramer started out by looking for a total return stock. One that has great growth and a high dividend. Cramer recommended Diageo plc (DEO). DEO closed today at $72.50 so is too rich for shorting since it isn't likely to invoke mad buying to produce a big drop come Monday morning.

Next Cramer had his final take over target that Yahoo should consider and recommended Monster Worldwide Inc. (MNST)

Closing Price: $38.70
After Hours High: $39.50
Percent Increase at High: 2.1%
Price Level Off Point: $39.40
Percent Increase at Level Off Point: 1.8%
Trades on NASDAQ
Sector: Services
Short %: 2.95%
Days to Cover: 2.7

This one is right at the top of my max price range for considering a short off a Cramer recommendation and although there is some action after hours, the percent increase is reflective of a stock at the top of the price range. Since this pick is a "takeover" pick like RATE and KNOT were the last 2 days I think it is important to point out that neither had typical Cramer effect drops. RATE had a very quick and small drop from the open (and would have been best shorted during the after hours during the show) and then went up quickly. KNOT wasn't typical because it did not peak right at 9:30am like so many picks do and peaked closer to 10am but did have a substantial drop at that point. Some potential possibly down to $39.00 but may not be worth it without a spike on Monday.

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