Cramer's Stop Trading! Goldman Has Nothing Better to Do (12/15/08)

Stocks discussed on Jim Cramer’s Stop Trading! TV program, Monday December 15.

Apple (AAPL), AT&T (T), Schering-Plough (SGP)

Goldman Sachs made a series of downgrades on Monday including one of Apple, which Cramer said was “just vicious,” and added, “The Nasdaq futures were flying…I guess people thought that the Apple downgrade was not going to affect Apple.” Goldman also lowered the price target for AT&T from $33 to $30, but Cramer noted the current price is $26. “That’s a downgrade?”

“They are looking for things to do at Goldman,” commented Cramer, “they are obviously not making any money. If they were making money, they wouldn’t be doing this.”

Moving on to Pharma, Cramer said Schering-Plough is an ideal low dollar play. “That’s the one that I think has the best mojo on a down-103 day.”

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Comments

[sstro:]

Apple should come out and downgrade Goldmen.

2008 Dec 16 07:59 AM

[herbert hoover:]

Goldman and Apple should come out and downgrade Cramer

2008 Dec 16 08:26 AM

[Buffeted:]

I'm beginning to like Cramer...a little. Indeed, Goldman Sachs who will report earnings tonite, is going to get clobbered and would prefer to see everyone else go down with them. On the other hand, the combination of a deepening recession and the misconception that the netbook is a value buy (they can do next to nothing and end up being costly when you add up the service provider fees), dont realize what they cannot do and RETURN RATES ARE HIGH, they are taking market share away from the MAC. Even the new macs (not desktops) are not showing up in the top ten on amazon like last year because of the netbooks. I still think, however, that the numbers skew the real picture of mac sales especially since they account for only domestic sales for the period before black friday. Since when have we started downgrading stocks who depend on the ENTIRE holiday season for the bulk of annual sales based on NOVEMBER sales alone? I dont think Apple investors should be too scared off by this flimsy downgrade from the sinking ship of G.S. and would go so far to say that the coming earnings report in January for Apple should be a nice surprise for those holding aapl.

2008 Dec 16 08:32 AM

[who:]

GS should down grade GS!

2008 Dec 16 08:40 AM

[Sailorman:]

Goldman should downgrade Goldman. Who can begin to take these people seriously after what they have done? They should be out of businees and have no voice!

2008 Dec 16 08:42 AM

[User 283977:]

Downgrading strong companies like CAT, APPL, and AT&T is suspicious.
If you know a company is strong, and the market follows your downgrades, then certain actions on the part of Goldman and perhaps a few "blue horseshoe" friends should be detectable.

I can think of several ways they could they make big money by providing disingenuous ratings…. How do you think it could be done, and how could this get by the SEC?

2008 Dec 16 09:09 AM

[leh:]

Any truth to the rumor that Goldman has been making money these past few weeks shorting its own stock? Wouldn't put it past any of these dogs at this point.

2008 Dec 16 09:11 AM

[tginomorebush:]

AND barrons with eric savitz does the same!!

2008 Dec 16 09:46 AM

[User 283977:]

Here we go...

Moody's cuts Goldman ratings to A1 from Aa3

2008 Dec 16 09:59 AM

[passhappy:]

Brokers should not be allowed to make public their up/down grades. They should be for clients only. The only purpose of doing these public announcements is to move the stock price in their favor. Think of it;why give away investment advice? If I were a client I'd ask myself why am I paying for a full service broker?

2008 Dec 16 10:31 AM

[roadracer:]

Goldman Sachs reported a loss of $2.1B today. Looks like they have fantastic insight into the market..... wink! wink! nudge! nudge! Time to fire their analysts, especially the ones covering Apple. One check in California at any Apple Store provides enough reason why Apple will not only weather this storm but will come out of it stronger and in a better position market wise. They are cash strong with no debt. Few companies can say that.

2008 Dec 16 11:56 AM

[Illusional ...:]

I cant wait till the cat is out of the bag that these companies served no more than their own pockets without benefitting the clients they are paid to serve. Goldman's analysis has no more value than another person's guess which is of lesser and lesser value. Cramer does provide some comedic value though

2008 Dec 16 08:56 PM

[TomF75:]

Gotta admit it takes alot of Cajones for any one of these losers (GS, MS, WB, MER et. al.) to downgrade anyone!!! I love it best when they downgrade each other...thats beyond hilarious (or sad) depending on your perspective. Ultimate case of the pot calling the kettle black.

2008 Dec 17 01:19 PM