Wednesday, June 21, 2006
Real Money Blog
06/21/2006 1:00 PM
In this article, Cramer cites today's rally and attributes it to an oversold condition.
Furthermore, he believes "a lot of money is totally out of position," prior to earnings season. He firmly believes the quarterly results for most companies will be robust, resulting in an explosive move to the upside.
He declares: " That's the kind of action I expect to happen going forward when others report great numbers. That's what awaits us at the end of the quarter."
Cash Will Go From King to Pawn
06/21/2006 12:22 PM
In this article, Cramer cites the cash hordes of corporations, mutual funds, private equity funds, hedge funds and the individual investor as a soon to be bad position.
Although, cash has been king since May 11th, Cramer feels money will be put back to work when the Fed realizes it has gone too far.
Furthermore, he mentions the oils being "cash machines." And, he cites growth companies with lots of cash: FDX, HD, CA, NKE, BBY, SHLD and HD.
Bottom line: The market is up and Cramer is feeling bullish, again.
Good Companies Come Cheap Lately
06/21/2006 10:34 AM
In this article, Cramer cites low PE ratio's in JNJ, MSFT, MS, BSC, GS, LEH, TXT and declares they are "cheap."
He exclaims: "I want to kept this cheapness in sight because you simply cannot avoid a market this cheap. The downside has been crushed by this selloff. Things are cheaper than they have been in ages. It just seems so wrong to me."
NOTE: An AAP subscriber offers a rebuttal to Cramer's new bullish tone on MSFT:
bullishfrog said...
06/21/2006 11:01 AM
Dr. Flip Flop
Ahh, so today you like Microsoft at around $22.80? But let's rewind the tape. On June 1 you said: "At this point we have many people talking about how Microsoft has become so cheap it has to be owned. OK, how about this? I am someone who owns it and wishes he didn't because I think it will become even cheaper!" On that day MSFT closed at $22.82.--------- Then on June 9 you told us to sell tech into strength and you mentioned MSFT. On that day the stock closed at $21.92. ----- On June 15 you told us that you wished you didn't own MSFT but you can't sell it for AA+ because of your RESTRICTIONS. On that day the stock closed at $22.07. ----- The next day, on June 16, you told us not to be blinded by big tech nostalgia and that people should not buy those stocks, including MSFT, and that new tech would be better. On that day the stock closed at $22.10. Now Dr. Flip FLop, would you care to explain your reasoning for changing your mind?
Up Open Sets Us Up for Long, Hard Day06/21/2006 9:58 AM
In this article, Cramer feels " we have a long day ahead," due to the market opening higher. He suggests it would be better to open lower, then rally.
Nonetheless, he cites MS and FDX as "cheap stocks" and feels the "market that has gotten cheaper."
We Need to Open Down
06/21/2006 8:51 AM
In this article, Cramer wants the market "to open down and open down hard."
He cites the overwhelming bearishness of investors and believes we need a wash out day-- in order to finally bottom.
He believes we are in the midst of one of the "greatest earnigs booms" ever. However, until we bottom, he suggests "to sell strength and buy weakness until we wash out all the weak hands and get closer to that Fed meeting. And by the way, we do get closer."
