Cramer's Stop Trading! Goldman is Roaring (1/5/09)

Stocks discussed on Jim Cramer’s Stop Trading! TV program, Monday January 5.

Stop Trading: Goldman Sachs (GS), Nordic American Tanker (NAT), Terra Nitrogen (TNH), State Street (STT)

"I think we're now seeing the ascendancy of the investment bank," Cramer said of Goldman Sachs, which he says is “roaring” with a nearly 3% increase by the end of trading on Monday. As usual, Goldman is at the head of the class, but it is not going to be a deposit bank yet, but rather, an advisory bank, much like State Street.

After its 45^th consecutive dividend increase and the announcement that it is buying another tanker for $56.7 million, Cramer says he has “struggled” to understand why more people aren’t buying. Perhaps investors feel it has gone up too much, but Cramer noted the tanker purchase will increase earnings per share as well as the dividend. "Below $35 is a good price to pay,” he said.

Fertilizer is back, but Cramer would tread with caution; the rally might have been merely a temporary break from massive hedge-fund selling. He would stick with dividend names like Terra, with a yield of 11%, because the rally might come to an abrupt end.

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Comments

[Norman Lepo...:]

Do not listen to Cramer! As soon as he comes on TV @ CNBC I change the channel. I suggest all of you do the same!

Jan 06 08:51 AM

[Harley_52:]

I agree about Cramer, but add that If you're watching CNBC in the first place you should change the channel with or without Cramer's presence.


On Jan 06 08:51 AM Norman Lepoff, M.D. (retired) wrote:

> Do not listen to Cramer! As soon as he comes on TV @ CNBC I change
> the channel. I suggest all of you do the same!

Jan 06 10:42 AM

[Rob Viglione:]

The "Cramer effect" probably means selling into his Buy recommention is a decent idea. Goldman is emerging as the premier investment bank, and will likely benefit from increased government bond and MBS action, but the other investment bank functions will be dry for some time. With increased trading volatility going forward you never know when we'll one day hear of a rogue Goldman trader losing billions for the firm. Too risky for me.

Jan 06 12:49 PM

[auto44:]

Remember when Cramer did almost a whole show on why we should buy Bear Stearns???????????????...

Jan 06 08:16 PM

[hisabness:]

cramer knows his stuff. id watch the show more for the insights (fundamental analysis techniques) as opposed to specific information in regard to a stock.

Jan 07 10:22 AM

[User 342354:]

Fully agree with the below comment. Watching Craemer may provide you with certain information, insights and perspectives for making your own decisions and getting a better understanding what at times is influencing Wall Street. Following his stock recommendations [ with buy and sell recommendations very frequently changing--he is wrong as ofter as he is right and the results are not considering short and long term tax implications--is not necessarily recommended.


On Jan 07 10:22 AM hisabness wrote:

> cramer knows his stuff. id watch the show more for the insights (fundamental
> analysis techniques) as opposed to specific information in regard
> to a stock.

Jan 22 11:48 AM