Wednesday, July 12, 2006
Real Money Blog
07/12/2006 1:00 PM
In this article, Cramer begins by bashing ETF's, exclaiming:
"Get me out of the indices. Get me out of the ETFs! That's what I would be saying if I were a CEO right now about my stock."
Furthermore, he feels the only thing left to do for some companies is "go private."
Bottom line: Cramer suggest lightening up on stock in order to stay in the game.
He sums it up: "Sidestep some of the pain with some sales. But don't blow everything out because of fear of shortfalls and because of the index pressure from just about every index that can be shorted that is around."
Time to Lighten Up on Sensitive Names
07/12/2006 11:31 AM
In this article, Cramer described yesterday's trading session as " pure bear market action."
Cramer believes a lot of investors got sucked into the market yesterday.
He exclaims: "It was a day when you thought the NASDAQ 100 Index might be putting in a bottom, and today you are getting hurt even worse and giving back much more than any reversal yesterday could offer."
Bottom line: Cramer finds many parallels between the spring-summer of 2000 and now. He suggests selling into strength and buying weakness.
NOTE: Cramer's mood changing ways is causing a stir on his message boards.
ericbrad said...
07/12/2006 11:58 AM
bear market?
Dude...do you even remember what you said 5 minutes before...or do you even care?
Hank said...07/12/2006 11:55 AM
Jiiimmmmyy!!
Man you change your mood more than my pregnant wife in one day!!
Overwrought and Overbought
07/12/2006 11:12 AM
In this article, Cramer claims the market is "overbought."
He exclaims: "we are still so severely overbought that any bad news is met with an immediate poor reaction. Any whiff of bad news in tech is met with a cataclysm."Furthermore, he describes what he would have done if he "were back at his hedge fund:"
"...I would have been long calls on the volatile names and would have sold short stock against the calls, keeping the positions from flattening out."
Bottom line: Cramer says the oscillator is +3. "...a far distance from oversold."
Forgiving Market Begets Buys
07/12/2006 10:12 AM
In this article, Cramer believes AA's quarter was "great" and "now it is on the move because it is just too cheap."
Furthermore, Cramer feels DNA is a buy here and will turn around "by the end of the week."And, he believes AL is a takeover candidate for AA and will go up after they report earnings.
Botom line: Pick and choose your spots carefully.
Dynamic Materials' Hidden Play
07/12/2006 9:50 AM
In this article, Cramer feels BOOM can go from small to big cap.
Furthermore, he touts the company for its explosive earnings potential, as"fabrication of metal for refineries" remains in high demand.
"Just perfect."
eBay Gets Short Shrift
07/12/2006 9:26 AM
In this article, Cramer rips EBAY's CEO, Meg Whittman, saying:
"I see her as being the quintessential ride-the-wave exec who has done pretty much everything wrong imaginable, not growing the brand and buying something that can't be monetized (and might never be)."
Moreover, he criticizes her for going to the Sun Valley tech conference, saying: "...should be hands-on right now, not glad-handing and hobnobbing. I believe that if I were Whitman I would actually make a statement about why this isn't the time to leave to go to have a good time at Sun Valley."
Bottom line: He believes the short sellers will be right, long term, by betting against EBAY. He feels the company no longer deserves a premium market cap of 30 x eps.
He sums it up: "I just believe that it would be reasonable to see the market cap be reduced dramatically. It simply no longer deserves the premium, and doesn't deserve the market cap."
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