Monday, July 24, 2006
Real Money Blog
Finding Value When Wall Street Won't
07/24/2006 11:48 AM
In this article, Cramer cites the HCA deal (going private) as logical, since the company "was never going to get credit for its terrific ongoing business."
Bottom line: "You have to accept the fact that the market is poorly valuing many, many companies right now. A lot of companies are simply too cheap."
Also, he praises MOT, KO and VFC.
Case Study of a Buy-Write Slide
07/24/2006 11:30 AM
In this article, Cramer rants over a FWLT option conspiracy.
He theorizes: "The dealer doesn't want to be caught long 1,300 calls of something he knows nothing about. So what does he do? He shorts common against it. That way he has a neat position, short common and long call. The stock cracks, he wins. The stock goes up, he's protected."
Bottom line: "It is often the options gremlins doing their work that drives things."
NOTE: I'll leave this article for Adam to critique. If he's up to it.
Going Digital, a Necessary Hazard
07/24/2006 11:03 AM
In this article, Cramer praises NYT for "knocking the cover off the ball" in its internet division. Moreover, Cramer applauds SSP for being "one of the most advanced companies out there for the Web."
However, in both cases, he feels their core business' dwarf the growth oriented internet divisions. He suggests: "They need to make acquisitions in digital to make them grow faster, and there's not enough out there to buy."
He also applauds NWS for its internet objectives.
Finally, Cramer exclaims: "But we must accept that there is only one company that's really making big money on the Web: Google. To me this is amazing. When the Web was early in its development there was a sense that maybe four or five companies would hit it big on the Web. After last week's horrid performance from Yahoo! (although I believe that stock can go back to $30), there's only one company that made it."
NOTE: Last week Cramer suggested YHOO could trade down to $15-- now he thinks its going to $30.
Halliburton's Nonsensical Pricing
07/24/2006 9:56 AM
In this article, Cramer cites the bad tape in energy related stocks and calls it "utterly absurd."
He exclaims: "The natural gas companies know that their longevity in a world where companies are switching to coal because of natural gas's newfound unreliability depends on more drilling and an adequate long-term supply. That's why they must drill."
Bottom Line: Cramer declares HAL a buy.
The Proof's in Shering's Pudding
07/24/2006 9:39 AM
In this article, Cramer goes out of his way to praise SGP and its CEO, Fred Hassan.
"This is the second quarter that Fred Hassan, the company's remarkable CEO, has done the unthinkable...my faith in Hassan's ability to pull off a turnaround is about as high as it can possibly be...I have always felt that Hassan was first going to turn the company..."
Bottom line: Cramer likes SGP.
Tech Will Rise on Low Expectations
07/24/2006 9:24 AM
In this article, Cramer is now bullsih on tech. He cites how bad the tape has been, with regards to tech, and suggests "expectations are so low for tech, that it can be owned."
He sums it up: "But most important, I believe that the earnings estimates can now be beaten. That's how tech trades up. The estimates must be beaten. And, at last, it is possible."
NOTE: This RealMoney subscriber makes a valid point:
seeknfind said...
07/24/2006 10:54 AM
ALARMING!!!
07/24/2006 11:48 AM
In this article, Cramer cites the HCA deal (going private) as logical, since the company "was never going to get credit for its terrific ongoing business."
Bottom line: "You have to accept the fact that the market is poorly valuing many, many companies right now. A lot of companies are simply too cheap."
Also, he praises MOT, KO and VFC.
Case Study of a Buy-Write Slide
07/24/2006 11:30 AM
In this article, Cramer rants over a FWLT option conspiracy.
He theorizes: "The dealer doesn't want to be caught long 1,300 calls of something he knows nothing about. So what does he do? He shorts common against it. That way he has a neat position, short common and long call. The stock cracks, he wins. The stock goes up, he's protected."
Bottom line: "It is often the options gremlins doing their work that drives things."
NOTE: I'll leave this article for Adam to critique. If he's up to it.
Going Digital, a Necessary Hazard
07/24/2006 11:03 AM
In this article, Cramer praises NYT for "knocking the cover off the ball" in its internet division. Moreover, Cramer applauds SSP for being "one of the most advanced companies out there for the Web."
However, in both cases, he feels their core business' dwarf the growth oriented internet divisions. He suggests: "They need to make acquisitions in digital to make them grow faster, and there's not enough out there to buy."
He also applauds NWS for its internet objectives.
Finally, Cramer exclaims: "But we must accept that there is only one company that's really making big money on the Web: Google. To me this is amazing. When the Web was early in its development there was a sense that maybe four or five companies would hit it big on the Web. After last week's horrid performance from Yahoo! (although I believe that stock can go back to $30), there's only one company that made it."
NOTE: Last week Cramer suggested YHOO could trade down to $15-- now he thinks its going to $30.
Halliburton's Nonsensical Pricing
07/24/2006 9:56 AM
In this article, Cramer cites the bad tape in energy related stocks and calls it "utterly absurd."
He exclaims: "The natural gas companies know that their longevity in a world where companies are switching to coal because of natural gas's newfound unreliability depends on more drilling and an adequate long-term supply. That's why they must drill."
Bottom Line: Cramer declares HAL a buy.
The Proof's in Shering's Pudding
07/24/2006 9:39 AM
In this article, Cramer goes out of his way to praise SGP and its CEO, Fred Hassan.
"This is the second quarter that Fred Hassan, the company's remarkable CEO, has done the unthinkable...my faith in Hassan's ability to pull off a turnaround is about as high as it can possibly be...I have always felt that Hassan was first going to turn the company..."
Bottom line: Cramer likes SGP.
Tech Will Rise on Low Expectations
07/24/2006 9:24 AM
In this article, Cramer is now bullsih on tech. He cites how bad the tape has been, with regards to tech, and suggests "expectations are so low for tech, that it can be owned."
He sums it up: "But most important, I believe that the earnings estimates can now be beaten. That's how tech trades up. The estimates must be beaten. And, at last, it is possible."
NOTE: This RealMoney subscriber makes a valid point:
seeknfind said...
07/24/2006 10:54 AM
ALARMING!!!
Jimmy, Thankyou for your kind insight. However once again you BOOYAHAD one into your American Standard. This is KING HAL all over again. Weekly round up first sentence second paragraph. "TECH CANT BE OWNED" Now you post this. Did something miraculously change sat. & sun. while the market was closed? If I were a pessamistic person, I would think that you have several writers who post on your behalf, that have no idea what the other is writing. Keep up the good work Jimmy. While your having dinner on the expense account of the company that I just lost 9% off of your guidence. You are rite! Soup is the thing to buy. Top Romen is what I'm feeding my family with your 24% year over year.
