Cramer's Stop Trading! Merrill Takes a Machete to Disney (11/3/08)

Recap of Jim Cramer’s comments on Stop Trading! Monday November 3.

Disney (DIS), Verizon (VZ), Comcast (CMCSA), AT&T (T), Apple (AAPL)

Merrill Lynch produced a negative report, entitled “Bringing out the Machete” on Disney, but Cramer thinks it was far too brutal and is bullish on the stock long-term. He would wait for Disney’s “so-so quarter” and any further estimate cuts before buying, and Cramer thinks the company’s popular films and other products will create a comeback. Companies such as Verizon, Comcast and AT &T that provide a triple play of phone, internet and cable are not being hit by housing and consumers are not yet in a rush to throw out their landlines. He likes VZ and T’s generous yields. Finally, since the Nasdaq is leading the market and Apple is leading the Nasdaq, Apple is an “up” stock, according to Cramer’s arithmetic.

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