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Thursday, December 07, 2006

December 7th - DLB EBAY

Cramer recommended Dolby Laboratories Inc. (DLB) even though it is up $9 since November.

Closing Price: $28.95
After Hours Price: $ 30.31
Percent Increase at High: 4.6%
Sector: Technology
Days to Cover: 7.7
Short %: 3.60 %
% Held by Insiders: 66.78 %
% Held by Institutions: 30.80 %
50 Day Moving Average: $22.24
200 Day Moving Average: $21.40
Average Price Drop for Sector: 4.3%

Up big after hours for a stock that has already run so much, but Cramer did say it deserves to go higher. Cramer is making some compelling reasons for longer term strength, but that certainly doesn't mean that the stock should be up $1.30 after hours. Aside from the one day in November where the stock shot up nearly $7, I don't see any big up days as the stock normally trades very lightly and has 20-cent up/down days looking at the last few months. I think it can float back down to the $30-even level, and will likely fall below it but will likely stay close to it.

Finally Cramer recommended eBay Inc. (EBAY)

Closing Price: $31.30
Sector: Technology
Days to Cover: 2.5
Short %: 3.76 %
% Held by Insiders: 16.72 %
% Held by Institutions: 65.00 %
50 Day Moving Average: $30.99
200 Day Moving Average: $31.53
Average Price Drop for Sector: 4.3%

The stock was down 83-cents today, and the after hours push has not taken it to even as it trades just below $32. This is an ANGO no short situation since the after hours price hasn't even reached the high for the day, but regardless of that, this is not a stock I would short off the Cramer recommendation since it is just too big and well known for Cramer to influence.

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