Cramer's Stop Trading! Don't Bet against Jamie Dimon (03/16/09)

Stocks discussed Jim Cramer's Stop Trading! TV program, Monday March 16.

JP Morgan (JPM), Goldman Sachs (GS), VMWare (VMW), EMC (EMC), Cisco Systems (CSCO), Hewlett-Packard (HPQ)

Cramer was impressed that although OPEC announced it was not lowering crude output targets, oil was only down a dollar before reversing when it was expected to decline 7 to 10 points. He

Cramer also applauded JP Morgan's move close to $25 and said he would be confident in the stock once it passed $22, where CEO Jamie Dimon last bought shares; "Betting against Jamie Dimon has always been foolish," he said.

With Goldman Sachs up 20% so far this year, why is it issuing FDIC backed government bonds instead of preferred shares? Cramer thinks Goldman is doing what the government wants them to do and paradoxically, the government may not want Goldman to pay off TARP too soon. Although Goldman could issue preferred stock, it would be at just a low coupon, and he doesn't think the market is stable enough yet for Goldman to offer preferred shares at a higher coupon.

Cramer would pay attention to VMWare and EMC, which owns the majority of VMw's shares, as Hewlett Packard and Cisco reportedly look for takeover targets. Of VMWare, Cramer said; “Eventually this has to be a sought-after property by one of these two."

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Comments

[Stock Marke...:]

I think Cramer read my article on SeekingAlpha and Jamie Diamond from a few weeks ago!

Mar 18 10:11 AM