Cramer's Lightning Round - Don't Be Fooled by DryShips (2/12/09)

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Thursday February 12.

Bullish Calls:

KBR (KBR): “They had a gigantic settlement with Nigeria…people said it would be down 2 or 3 bucks. What did KBR do today? It was up 17 cents. That is a sign of tremendous strength I want to buy, buy, buy that’s a great infrastructure play.”
Goldman Sachs (GS): “On a major rip . They will be able to repay TARP soon.”
Morgan Stanley (MS)

Bearish Calls:

Dryships (DRYS), Nordic American Tanker (NAT): “I don’t like it… obviously the balance sheet hobbled. I turned on this ship business even though the Baltic dry index is good…most actively traded stock on our ticker…don’t be fooled.”
Astoria Financial (AF): “This is my old mortgage holder…well-run bank, but remember my rule: no banks except for Goldman Sachs and Morgan Stanley.”
Dow Chemical (DOW): "Well they finally cut the dividend. That guy who runs that company Andrew Liveris…let’s just say…the lightning round is over.

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Comments

[tonyinbrazil:]

Here's Cramer on Jan. 8, 2009, when DRYS was peaking in the $15-17 range:

DryShips (DRYS): “You got it…I feel very strongly this is going to be a winner. I see the Baltic dry index has bottomed…China is coming back.”

Now it's at $5 and he's bearish.

Should you be taking this guy seriously anymore???

I think not.

Feb 13 07:59 AM

[Alphameister:]

Another buy signal for DRYS!

Feb 13 08:00 AM

[Rayn:]

awesome, cramer hates DRYS, that means its coming back.

Feb 13 08:53 AM

[Stevielee:]

Cramer has no credibility. The only thing he has mentioned with any validity recently and not that recently, was MLPs. And that was a passing mention. Making picks in the volume he does is a losing proposition, unless your Muhammed Ali.

Feb 13 09:13 AM

[Ray Rez:]

Give Cramer the prize for being incorrect very often..........

Feb 13 09:21 AM

[Dave Marsh:]

Cramer knows nothing about shipping. He doesn't know the difference between dry bulk, tanker and container shipping. DRYS does suck (it has always been over-leveraged), but he's such a good contrarian indicator - unintentionally - that his thumbs down is a buy signal. But people should really look at GNK, DSX, EXM and TBSI for drybulk trading action. EXM has given no indication of cutting their dividend (yielding 16% here). For big swings, you can't beat GNK and TBSI; they each have only 30 million shares in the float. NM is a great company, but they have a large float, so aren't as volatile for swing trading. TBSI specializes in handymax and tweendeckers, which are very useful for large pieces of equipment and machinery (e.g. Power plant components, earth-movers etc), commonly shipped during infrastructure buildouts. Full disclosure: I've been trading dry bulkers for 4 years. I'm holding DSX and TBSI, but I'm trading GNK and EXM on the violent swings - which occur about every other day right now.

Feb 13 09:30 AM

[Maxe Paul:]

LOL, absolutely, i second this, must be a screaming buy.


On Feb 13 08:00 AM Alphameister wrote:

> Another buy signal for DRYS!

Feb 13 10:28 AM

[Stockmaven:]

Cramer is nothing more than a showman. His picks stink and he is in bed with the shorts.
My advise is when Cramer says sell, look to buy!!
Why is this crooked idiot even allowed a microphone.
I will look at Dryships. I know the BDI has been surging and China needs lots of raw materials. Their economy can sustain itself.

Feb 13 11:55 AM

[BxCapricorn:]

Is he still on the telly? I liked him better on Seinfeld.

Feb 13 12:07 PM

[ETFexpert:]

I was just shown this today. Take a look and then decide if Mr. Cramer is a "showman" or "financial wizard".

www.youtube.com/watch?...
www.youtube.com/watch?...
www.youtube.com/watch?...
www.youtube.com/watch?...

Just watch them and see for yourself.

Feb 13 05:32 PM

[PeteK:]

Most people do the opposite to what Cramer said anyway.
Try that, it works.

Feb 14 02:59 AM

[Dark Night:]

I do think that Dryships is a poor investment choice ..if u want to buy a good shipping company then buy Paragon - good balance sheet vs Dryship. Management at Paragon is very good vs Dryships. I would advoid Dryships plus it doesn't pay a dividend! .. Perhaps people should be buying a shipping ETF??? Claymore offers a shipping etf its stock symbol is Sea.

Cramer is soso ..I do think he is fun to watch but most of his picks has been lukewarm at best. He seems to change his mind quite often on various stocks. Oh well

Feb 14 12:52 PM

[enigmadude:]

I own shares of NM and PRGN. It may be possible to make some bucks on a swing trade on DRYS, but I would not expect them to be solid long-term. Cramer does have a way of bringing attention to stocks in the news - even if he is wrong more often than not.

Feb 14 09:36 PM

[RyGuy:]

Thoughts on Cramer being Bearish on DOW?

Feb 15 12:17 AM

[sahm:]

this guy is scary!!! how can he be allowed to continue to mislead the public!! it's sad that drys on the way out! i have a few worthless shares now! :(

Feb 15 02:20 AM

[ron_paulite:]

Cramer was asking his viewers to buy shares right up till the big crash in Oct 2008. On the Monday after the week of the big crash in Oct 2008, he started asking his viewers to sell everything, to exit from equities! Well, the sell advice may prove to be sound --- but coming right after he advised everybody to buy???

to SeekingAlpha -- do yourself a favor, don't make yourself look silly - stop mentioning Cramer if you consider yourself a serious investment website.

Feb 15 12:07 PM

[naidle:]

If you want to invest based on an online personality, Cramer or otherwise, then you need to give your head a shake.

I suppose his audience are speculators looking for the quick return. It's too bad it's a coin flip with Cramer.

Feb 16 02:02 PM