Must Settle - Cramer's Stop Trading! (10/20/08)

Recap of Jim Cramer's comments on Stop Trading! Monday October 20.

Must Settle – Boeing (BA), Honeywell (HON), United Technologies (UTX), Precision Castparts (PCP)

Cramer focused on one Dow stock – Boeing. The company has to settle the strike “by November 1 or it’s really going to impact earnings. Maybe after the election they’ll settle it.” Honeywell was down again today. United Technologies doesn’t have as much exposure as Precision Castparts but they will hurt as well. “The strike is really beginning to hurt America and the President doesn’t seem to be aware of it,” Cramer continued. He said there will be unbelievable pressure on these stocks that do business with Boeing if the strike is “elongated.” The contractors are starting to hurt. Eaton had a good quarter but “everything that goes into a plane is getting stretched here,” Cramer said.

Right Now – Best Buy (BBY), Circuit City (CC)

Cramer says “Everyone thinks whatever strategy Circuit City has will work.” He believes, “Eventually these strategies don’t work.” When it’s all over Cramer thinks there will only be one stand alone player left. As for Best Buy, the more it goes down the more tempting it is.

Upgrade – Transocean (RIG)

Cramer said it was "very interesting" that Morgan Stanley upgraded Transocean from sell straight to buy, bypassing hold altogether because the stock had dropped so fast. "You can't cancel giant Brazilian contracts," he said. "It doesn't work like that." Besides in five years there may be another shortage.

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Comments

[Richard Col...:]

You're a great historian, Cramer. Tell us something we don't already know. But, it's better to read your ideas here, than to see your ugly mug on television.

Give us a break __ why don't you just take your information and use it for your own investing purposes and let someone with a better vision have your spot on the tube.

Hope to NOT see you later,

Richard Collins
Claremont, CA

2008 Oct 21 10:24 AM

[Norman Lepo...:]

I agree with Mr. Collins. I could not have said it any better.Thank you.

2008 Oct 21 10:45 AM

[MSmailbox:]

After the drubbing that Cramer has taken, some of it deserved, he's got guts to continue on and try to prove that's he's more than just a "pretty face." If he survives, he'll come back stronger and better than version 1.0 Cramer was. I look for him to eliminate some of the "bells and whistles," but I don't want him to get carried away and turn sour. We all make mistakes, but some people learn from their mistakes, hang in there against great persecution and come back a winner! At this point, I feel that Cramer has been beaten up enough, to take a small position (LONG), in him. He was way overbought, but I see him as fairly valued at this point. I don't believe that he's going to fold, his bubble has been deflated and downside risk is minimal. If he can put a frame around this recovery, explain what's going on and not make too many outlandish predictions, I predict that Cramer will bounce back, in tandem with the market. If the market should completely collapse, then we won't need Cramer, anyway. Low risk, good value and the potential for a recovery. I don't believe that he'll be bought out, but that's something which he wouldn't mention, even if he were in talks with another network. Now is the time to buy Cramer, if you believe in him! If you wait for him to start climbing again, youll proabably miss a good part of the upside on this man. Good Luck, Cramer... Don't disappoint us, again.

2008 Oct 21 10:48 AM

[Richard Col...:]

Mr. MSmailbox,

Your metaphor of comparing Cramer to a beaten-down stock is overly optimistic. He will be "delisted".

Has he EVER even been a penny stock? NO!
He's a side show __ and not very entertaining at that.

Richard Collins
Claremont, CA

2008 Oct 21 12:39 PM

[Robert Sare...:]

Go Cramer Go. The bottom is probably 10 months away. But so what?

2008 Oct 21 02:01 PM

[Pessimistic...:]

Cramer haters.. he has been right more than wrong.. called a low end (8000s) market and told you to get out with some cash. mentioned the 5 year plan and if you needed money hoard it. He has faults but he loses dough as well.
He takes people at face value and maybe he trusts too much.. I have seen it as most of you have. Hey haters, look in the mirror. Does that sound familiar? I am willing to bet you trusted him at one time or another and he failed you.. or you thought. Why you hate so much could be linked to a loss of $$, an investment in a stock that did not grow to fruition that he may have suggested. So you hate.
Or is it his intelligence? He is a smart guy. Gotta give him that. As a matter of fact.. many of you here are real smart guys..folks. I can see that by the writing skills and the content or body of your commentary. Kudos to all of you who post. I do appreciate your conviction with your animosity towards Cramer.
Here is my take on it. This hating has to be with somebody.. why not he? One of many who has made mistakes in this forsaken economy. Why is it others have also been quoted or have been seen on TV, radio.., well ok, media of all types and they do not get the poleaxing Cramer does? Is it the bells and whistles he provides as entertainment?
Rich, what is it about Cramer that makes people nuts? he can't be the only guy quoting stock and what to do, loses money and then owns his mistakes. he taught me and millions of others to do homework ,lots of homework and then make a decision based on that. I do and feel more confidant about what moves I make. IS THAT WRONG???
He is obsessive when he talks about homework.. his books preach homework.. he consistently talks homework on his show, so what the hell is the problem?
I guess I need help understanding. He too is human as any of us and has made mistakes. He owns his. I own mine. I'm responsible for me. That said, I hold myself accountable. Why would anybody not do their homework before buying and does anybody ever hold themselves accountable for the choices they make.
What happens if the market tanks and that went conversely with his ranting? What about the Financials and the CEOs and the Gov't and the rest of wall street hedgers? Do they ever become culpable for their hand in this with any of you? How do we put so much focus on one man?

2008 Oct 21 04:38 PM

[PeteK:]

Boeing is repeating the history of GM & Ford, workers will not give up until
the mother goose is dead. Cramer is right about Boeing. The strike is affecting thousands of other companies and other workers. Share holders are the losers of all these companies. Don't understand what those Boeing meat-heads are thinking if they have brains at all. No wonder industries are moving to foreign countries. The sooner the better.

2008 Oct 21 07:57 PM

[Brian from ...:]

I day trade Boeing stock everyday. I could care less if they strike for 6 months. If Boeing strikers want more money they should buy there Boeing Stock when it's in the 40's, get back to work, work hard everyday, and sell when it hits 100. Win...Win...Win...situ...

2008 Oct 22 02:04 AM

[Richard Col...:]

Mr.Pessimistic Optimestic,

...just two points to critique your reply:

I. You use the word "hate" too many times. And, it's not applicable here __ for me anyway. I cannot hate the man. I know he needs a job; but he should find one he's good at.

2. The vast majority of my equity holdings are in Franklin Templeton Funds, which are down of course.
I sold some over a year ago, which turned out to be a good move. I sold Harrah's (gaming) over a year ago that netted four times my investment. I'm only slightly wounded; so the sour grapes syndrome would not apply here either.

I cannot watch Cramer for more than five minutes at a time. Like I said, he trys to turn a serious subject into a side-show.

As for Boeing, it's a great company. I don't want to see it go the route of the American auto industry. The principles of that company should communicate with the employees and the union often, on how important it is to stop some of the "gimm'e, gimm'e, gimm'e" and point to the GM, Ford situation.

Good luck to you all __ the investors. Make your own decisions based on your own knowledge and the economic conditions. I do.

Richard Collins
Claremont, CA

2008 Oct 22 12:03 PM

[Michael Del...:]

Some people cannot stand to watch Jim Cramer (my wife) and some people find him highly entertaining (me). The solution to this problem in my house is that I watch him upstairs and my wife watches something else downstairs and everyone is happy.

If you buy some stock based on a recommendation from JC and you lose money on that stock, is it JC's fault? Of course not. Not any more than if you lost money on a stock S&P had given 5 stars. Or lost money on a stock from Goldman Sachs conviction list. In the end, if you decided to buy it, you have to take responsibility for the purchase.

The smart move would have been to bail out of everything when it was down 10% and sit in cash while you watch all the angst from the sidelines for the past six weeks. And don't buy back in until things start to get better. But I am only playing with mad money, so I stayed in the market. Jim's show is about buying and selling stocks. It would not be very entertaining if the last 30 shows were just him telling you to stay in cash. Where would the fun be in that? So in a bear market, listen to Jim for ideas, but don't buy until things turn around unless you can handle some pain.

2008 Oct 23 06:21 PM