Jim Cramer Says: LVLT, RAD, SVNT for 2007

Last night's Mad Money show(01/05/07), Jim Cramer gave his top three speculative picks for 2007.

His picks:

1. Level 3 Communications, LVLT
2. Rite Aid, RAD
3. Savient Pharmaceuticals, SVNT

These picks caught my attention since they have been typical swing trading or short term trading plays. He warned, as he usually does, don't run out and buy these after hours or first thing Monday morning, but to do your homework over the weekend. I wonder how many folks will do that.

I blogged back on 12/14/06 when he recommended GSIC. The next day volume jumped to over 2 million from 375 thousand and it gained 7%. Same thing when he recommended GSOL back on 12/8/06 - the stock was trading at $14, the next day it was $16.30 - 16% jump - and volume jumped from 55 thousand to 1.4 million. Bloggers have discussed the Jim Cramer effect, I wonder is it too late to profit from it?

Trade Your Way to a Million Dollars

Not a unique exercise, but fun, nonetheless...Start with $3000 of capital, earn 10% profit each transaction, reinvest accumulated capital.

Just 61 trades away from a million dollars? Sounds good. It's the beginning of the year...there's plenty of time. :-)

Of course, these calculations don't include commissions or losses from failed stock picks - just the mathematical possibility of a what-if scenario.

Ah...the beauty of compound interest...