Date updated:01-06-2007
Jim Cramer has come out with his Top 3 Speculative Picks for 2007.

-
LVLT
Level 3 Communica - $1.20
- -2.44%
- $1.20
Cramer's top speculative play for 2007 is Level 3 Communications (LVLT). This stock has spiked more than 35% since Jim recommended it in September but this is alright. Since connecting with YouTube and NBC the stock has become more desirable. On Thursday LVLT completed an acquisition of Broadwing. This was called a "big risk, big reward." Cramer thinks they have a huge broadband pipe in a universe that is essentially facing a potential bandwidth shortage. He thinks that the high debt level is ok because there is high-demand from the junk bond buyers for their debt and they are smarter than stock traders.

-
RAD
Rite Aid Cp - $1.27
- -2.31%
- $1.29
Cramer's #2 speculative play for 2007 is Rite Aid (RAD). Right now only 10 analysts cover the stock and it gets no support from the Street. Jim loves it "when a hot stock is unloved" and RAD should be valued higher. When the Street figures this out viewers will wish they were in the stock. RAD should be bought Monday afternoon. This is the one drugstore that Jim said "seems to have immunity from the Wal-Mart (WMT) disease." A takeover bid could be coming also. The CEO Mary Sammons joined Jim to discuss RAD. Sammons loved that Jim picked them and would prove him right. The $150 million that RAD saved from the merger with Brooks Eckerd was viewed as a low estimate of what could be saved. Risk was talked about and while there will always be integration of risk RAD has it well covered.

-
SVNT
Savient Pharmaceu - $13.29
- -2.35%
- $13.16
Cramer's #3 speculative play for 2007 is Savient Pharmaceuticals Inc (SVNT) was the number three pick and was referred to as taking the "risk factor up a dozen notches." This stock has been on a "tear" but it has "room to run." SVNT brings three great attributes to the table. Management is skilled, they just launched a testosterone drug and a new drug for gout is in phase III. Three to five million Americans suffer from gout and shares could easily double if these trials are positive.
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A. The only one I own : SLX,
too hard pick a winner out all of them
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