February 26th - YHOO IACI EBAY

In Cramer's first segment he said that Google has stalled, but even though he is keeping his $600 price tag, but its not going to go up until it has a pullback to $450. He named 3 replacements to buy while waiting for Google to come around.

The first pick was Yahoo! Inc. (YHOO)

Closing Price: $32.12
After Hours High: $32.50
Percent Increase at High: 1.2%
After Hours Most Recent: $32.41
Percent Increase at Most Recent Price: 0.9%
Sector: Technology
Days to Cover: 3.4
Short %: 6.89 %
% Held by Insiders: 10.41 %
% Held by Institutions: 71.30 %
50 Day Moving Average: $28.21
200 Day Moving Average: $28.25
Average Price Drop for Sector: 4.3%


A big name stock that Cramer doesn't normally move that much on a recommendation which takes away from shorting potential. The RSI shows the stock being at overbought levels, and the top band of the bollinger band is at $32.97 so the upside is a bit limited so these small gains may not hold tomorrow, but not a stock I would normally consider for a short.

Cramer's 2nd Internet pick to buy while waiting for Google to come down was IAC/InterActiveCorp (IACI)

Closing Price: $40.74
After Hours High: $41.80
Percent Increase at High: 2.6%
After Hours Most Recent: $41.27
Percent Increase at Most Recent Price: 1.3%
Sector: Consumer Goods
Days to Cover: 4.1
Short %: 7.58 %
% Held by Insiders: %
% Held by Institutions: 72.70 %
50 Day Moving Average: $38.32
200 Day Moving Average: $30.86
Average Price Drop for Sector: 4.8%


After hours has pushed the stock over the top band that was at $41.13. The RSI is also over 70 which is a sign of being overbought, but as you can see from the chart, the stock has had an RSI over 70 recently and was still able to gain in price. The price has been hugging pretty close to the top band so a fall back to that level tomorrow could be a possibility after the early spike. The opening prices haven't been reaching the highs from the night before lately so I would wager a guess that the opening price might be in the $41.50 area. Also, here is my write-up from August 9th 2006 when Cramer originally recommended IACI (you can also type IACI into the search box at the very top left of the blog to see the whole post): "IACI had large pre-market volume where the opening trade at 8:00am was $26.48, which was equal to last nights after hours high. The price was then very choppy but went towards the opening bell on an increase to the pre-market high of $26.71 at 9:28am and opened at the same price at 9:30am which also happened to be the high for the day. The initial price drop in the stock was to $26.12 at 9:49am and the low of the day of $26.03 was seen at 3:52pm." The past does not predict the future, but the stock did see its high at the open last time.

Cramer's #1 internet stock to buy while waiting for Google was eBay Inc. (EBAY)

Closing Price: $33.42
After Hours High: $33.94
Percent Increase at High: 1.6%
After Hours Most Recent: $33.87
Percent Increase at Most Recent Price: 1.3%
Sector: Technology
Days to Cover: 2.1
Short %: 3.20 %
% Held by Insiders: 16.72 %
% Held by Institutions: 64.80 %
50 Day Moving Average: $31.62
200 Day Moving Average: $29.80
Average Price Drop for Sector: 4.3%


Another stock that trades on huge volume that Cramer doesn't move that much on a recommendation. A down day today took the stock down from the top band at $34.30. A fair amount of after hours buying before Cramer actually mentioned the stock, which I can only guess is from people speculating that he was going to pick EBAY. To be honest I had EBAY typed in 5 seconds before he mentioned it but I wasn't buying to catch a spike. So the top band wasn't reached after hours and I don't think it is likely to go that high tomorrow leaving little potential for shorting.