Cramer's Stop Trading! Motorola's in the Doldrums (11/9/09)

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Monday November 9.

Apple (AAPL), Motorola (MOT), Nordic American (NAT), Diana (DSX)

Apple (AAPL) is stuck after a disappointing quarter. Its lackluster iPhone release in China has caused its stock price to stall. Motorola (MOT) is also in the doldrums because reception of its Droid release was not as enthusiastic as expected.

The Federal Realty Investment Trust's news on commercial real estate indicates the sector is much healthier than expected.

Cramer thinks Nordic American Tanker (NAT) is a coiled spring after its disappointing quarter and dividend cut. The fact it only declined 1.4% is a sign of confidence in the industry, and Cramer would also look at Diana Shipping (DSX) as a play on strength returning to world trade. Cramer says Diana is now the best in the group, and he sees a "major run in Diana."

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Comments

[Aquia33:]

"Apple (AAPL) is stuck after a disappointing quarter"… and exactly what planet have you been on??

Nov 10 09:41 AM

[PiMatrix:]

Sounds like a misquote. SEC, example of stock manipulation using FUD?

Nov 10 10:22 AM

[stock up 921:]

I don't understand how Cramer can say "Apple (AAPL) is stuck after a disappointing quarter. Its lackluster iPhone release in China has caused its stock price to stall."
If he stands by this posting he has lost ALL CREDIBILITY.
In the last ten days the stock has increase from $197 to a high today at $204.98.. The new future price guidance has risen from $202 to $235 since their quarterly announcement which "blew away" expectations.
How can he be SO WRONG on such a great stock and great Company.
I keep hearing from others about Cramer's poor picks but since I follow Apple closely, I can now see what a farce Cramer's comments are and how damaging his advise can be for those "investment sheep" that don't take time to research stocks for themselves. Cramer should be removed from his TV show.

Nov 10 11:18 AM

[Advill:]

I think he is talking about current quarter where expectations about China official release of Iphone (Nov. 01,2009) was a total disaster (5,000 units in 5 days)..... they were expecting 1 million in the first week.

rgds


On Nov 10 09:41 AM Aquia33 wrote:

> "Apple (AAPL) is stuck after a disappointing quarter"… and exactly
> what planet have you been on??

Nov 10 11:21 AM

[User 506733:]

Crammer.

Nov 10 11:35 AM

[stock up 921:]

Advill..I must take note with your assumption of what he said..
Let's break his comment down: "Apple (AAPL) is stuck after a disappointing quarter." the word "after" is past tense...you point would be..is stuck "before" the next quarter..or "causing the next quarter"..so he is wrong by saying "after"...this refers to the past quarter...
Next:
" Its lackluster iPhone release in China has caused its stock price to stall."
Your point..since Nov. 1st report on China sales of the iPhone..
The fact is on Fri. Oct 30th the stock dropped from $196 to around $189, I believe..before the announcement Nov. 1st..
Since Monday Nov 2nd the stock has risen to a high today Nov. 10th of $204, with some hiccups along the way...but the point is, his comment was today Nov.10th the day after the stock ran up from around $194 to around $201.
This guy claims he is so smart and he has the pulse of the market, but instead, the fact show different.. His comments are dangerous and costly to his "followers".. He should immediately make a retraction or correct his statement.

Nov 10 12:15 PM

[a4ism:]

If we can believe that this contributor's name is Miriam Metzinger, I think you mean "*she* should..."

Though I don't necessarily agree with you that an apology/retraction is required, I do think a clarification is in order.

Generally speaking, AAPL has never had a disappointing quarter:

Q1 08 $1.62 consensus, $1.76 beats
Q2 08 $1.08 consensus, $1.16 beats
Q3 08 $1.08 consensus, $1.19 beats
Q4 08 $1.12 consensus, $1.26 beats
Q1 09 $1.40 consensus, $1.78 beats
Q2 09 $1.10 consensus, $1.33 beats
Q3 09 $1.17 consensus, $1.35 beats
Q4 09 $1.44 consensus, $1.82 beats

What is disappointing about that?

Q1 10 $2.05 consensus, $???

Nov 10 03:35 PM

[PMG43:]

Mr. Cramer is one of the many financial dooms day profits. These individuals’ fail to comprehend that their negative commentaries have a compound effect and spread like a cancer on and in the minds of investors. The financial meltdown was a self-inflicted wound to the financial sector caused by deregulation, lack of oversight, mismanagement and plain simple greed. The collateral damage has affected and is still affecting every business sector. What now controls the market is irrational paranoia bordering on total insanity. Business, any business, runs on cash and has two sources for cash. Its first source of cash is investors in order to produce and market a product to consumers. The second source is sales revenue. In a negative environment investors pull cash out and businesses are obliged to contract in order to maintain bottom line performance to investors. The first line of contraction is a reduction of the work force, which reduces the number of consumers and produces a decline in consumer spending and consumer confidence. In response to the two declining indicators investors pull more cash out. The cycle repeats and repeats and repeats. The result is recession. The initial catalyst was the financial sector but the impact was and is across all sectors. The purveyors of gloom and doom are only feeding the problem. One only need to look at a days trading chart for virtually any stock to see just how illogical and irrational the market, and therefore the prospects of recovery are. I offer just on example and rest my case.
Mr. Cramer is one of the many financial dooms day profits. These individuals’ fail to comprehend that their negative commentaries have a compound effect and spread like a cancer on and in the minds of investors. The financial meltdown was a self-inflicted wound to the financial sector caused by deregulation, lack of oversight, mismanagement and plain simple greed. The collateral damage has affected and is still affecting every business sector. What now controls the market is irrational paranoia bordering on total insanity. Business, any business, runs on cash and has two sources for cash. Its first source of cash is investors in order to produce and market a product to consumers. The second source is sales revenue. In a negative environment investors pull cash out and businesses are obliged to contract in order to maintain bottom line performance to investors. The first line of contraction is a reduction of the work force, which reduces the number of consumers and produces a decline in consumer spending and consumer confidence. In response to the two declining indicators investors pull more cash out. The cycle repeats and repeats and repeats. The result is recession. The initial catalyst was the financial sector but the impact was and is across all sectors. The purveyors of gloom and doom are only feeding the problem. One only need to look at a days trading chart for virtually any stock to see just how illogical and irrational the market and therefore the prospects of recovery are.

Nov 11 09:28 AM

[Shaftsinker:]

Calm down Apple fanboys and think clearly for a second. I'm pretty sure this is a misquote. Cramer was drumming up APPL going to $300 after they announced their Q3 results.

I think what he's saying is due to the dissapointing China numbers the stock will hover around its current high for now as opposed to progressing like people expected it to.

Nov 11 10:04 AM

[fuuuuCramer:]

Here is a stock picking secret: do the opposite of what cramer says. I'm not even an expert and I can tell the guy is completely full of shit. I remember about 6 months or so ago he was going on about nordic shipping how great it was. I don't even know why anyone even cares what he says I sure as hell don't.

Nov 11 01:40 PM

[Fredriksen:]

Cramer continue to comment on a sector in which he clearly knows nothing about - what so ever! Nordic American tankers is valued at twice the underlying values, in a market suffering the deepest recession in 10 years, and with a supply side increasing by 30-40% over the next few years.

NAT is likely one of the biggest ponzi schemes frequently and POSITIVELY mentioned on CNBC; raise USD 100m in new equity, pay out USD 50m in dividends. As long as idiots like Cramer keep on buying overpriced newly issued shares, the ponzi scheme will continue.

I am loosing all my faith in CNBC!

Nov 12 01:47 AM