Date updated:06-01-2007
The Russell 2000 index is the key to this year's trades, he told viewers of his "Mad Money" TV show Thursday.
When a company gets added to the index, the biggest advantage is that the stock gets a lot more attention and promotion, Cramer said.
Every year, the Russell indexes (not indices), he explained, need to be rebalanced because of certain stipulations the indexes have. The annual rebalancing of the Russell 2000 index, which is made up of 2000 small-cap stocks, will take place in June this year.
Cramer said he's here to try to predict which stocks will join the index and thus rally. The Russell rebalance, he said, is a "great" trade. It is one of the few events in the year that causes certain stocks to go up.
Cramer said he has three favorite stocks that he believes are likely to get added to the Russell 2000.

-
CCIX
Coleman Cable - $3.39
- -3.19%
- $3.55
The first of Cramer's Russell 2000 stocks is Coleman Cable (CCIX), a company that makes electrical wire and cable, he said. Coleman is now big enough to be included in the index and only has one analyst covering it, Cramer said. However, this should change if it joins the Russell 2000. He said he could even see a company such as General Cable (BGC) buying it.

-
FCSX
Fcstone Group - $4.87
- 0.00%
- $N/A
Cramer's next "golden nugget," he said, is FCStone Group (FCSX), which has two analysts covering it in addition to overseas exposure.

-
GLDD
Great Lakes Dredg - $6.10
- +3.39%
- $6.05
His third and final Russell rebalance stock is Great Lakes Dredge & Dock (GLDD). The thing Cramer said he especially loves about this stock is that it is protected by the Jones Act, which prevents foreign competition in the U.S. market. Plus, it has a lot of foreign business, he said.
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A. Penny stocks web sites are full of scam
artists. I would stay away from them and
do your own research. db
A. The only one I own : SLX,
too hard pick a winner out all of them
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