Recap of Jim Cramer's comments on Stop Trading! Friday October 17.
“I like the fixed-income much more than the common," Jim Cramer said Friday. "That's where the values are. People try to figure out whether the value's in Exxon. The value's in those markets are once in a lifetime." This morning, Schlumberger reported earnings. Schlumberger is down Friday after the company warned of potential troubles in the near future. The credit crunch will “undoubtedly” have an effect on business, CEO Andrew Gould said, and a slowing global economy most likely means a “slowing” in customer spending. Cramer defended the company "I think this is much ado about nothing. The stock has returned to levels we haven't seen in three years," Cramer said. "I simply don't believe that call was as negative as people are making it out to be." He called Schlumberger a "high-quality company whose stock is the lowest it’s been in three years.” Cramer pointed out that Gould seemed positive on at least the first half of 2009 and the rest of the drilling stocks are up.
Also Cheap – Halliburton (HAL)
Regarding Halliburton, though, Cramer seemed a bit more cautious after the Schlumberger call, but he said that stock is also cheap. One area of the business that Schlumberger said would be weak is North American drilling, and that means Halliburton. "People are talking about some potential consolidation in this industry, so I don't know why anybody would want to sell Halliburton here, but I didn't feel great about Halliburton here" after the Schlumberger call, he said.
Strength Should Transfer - Peabody Energy’s (BTU), Joy Global (JOYG)
Peabody Energy’s strength should transfer over to Joy Global, Cramer said. Peabody reported a better-than-expected quarter Friday, and Cramer thinks the good results could put a bottom in Joy Global, which has been declining steadily since early September.
Hedge Fund Liquidations
Should investors follow hedge-fund legend Steve Cohen for the short-term and Warren Buffett for the long? Cramer addressed hedge fund liquidations. "Who am I to say that Steve Cohen doesn't know what he's doing. If he's in cash, am I supposed to say that I've got it all figured out?" he said. "In the short-term, you've got to go with Steve Cohen. In the long-term, you go with Buffett."
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