Jim Cramer's Mad Money In-Depth, 11/7/07: The Gisele-Cuomo Selloff

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday November 7. Click on a stock ticker for more analysis:

The Gisele-Cuomo Selloff: Fannie Mae (FNM) and Freddie Mac (FRE), Washington Mutual (WM)

Cramer blamed Wednesday’s selloff (which he called the Cuomo-Giselle selloff) on three people; Gisele Bundchen, Jay-Z and Andrew Cuomo. Supermodel Gisele Bundchen has refused to accept payment in dollars and prefers euros, as an indication of his wealth, rapper Jay-Z flashed a Euro bill instead of a dollar on his latest video, and Andrew Cuomo, the New York Attorney General, issued subpoenas to FNM and FRE to give information on loans they purchased from WM. Bundchen and Jay-Z’s espousal of the euro is symbolic of the steep 35% decline of the dollar over the last 6 years, while the euro is appreciating in value. Concerning Cuomo’s inquiry, Cramer said, “There's only one way out of the mortgage morass. We need to see lower down payments." Cramer is concerned government regulators may scare lenders out of lending. Cramer concluded the stories bringing down the market are temporary and urged investors not to panic.

CEO Interview: David Crane NRG (NRG)

Cramer praised nuclear power as “the cleanest, safest, most environmentally-friendly way to produce mass power,” and he believes it will eventually be the cheapest. Cramer invited David Crane on the show to discuss his ambitions to secure two nuclear reactors in Texas, which, if approved, may go up in 2014 or 2015. While Crane cited some advantages of coal, including its low price, he added nuclear will be an even more cost-efficient form of fuel with zero emissions. Crane said NRG is moving towards nuclear more aggressively than its competitors and doesn’t see wind as an alternative, since the market is saturated and the cost of imported wind turbines is “killing” companies, according to Crane.

Related: Cleantech blog discussed Crane's plea to reduce emissions.

CEO Interview: Michael Johnson Herbalife (HLF)

Herbalife would potentially be in the House of Pleasure after it reported a great quarter, beating analyst expectations by three cents a share. However, the company is plagued by allegations of unethical practices in China, and is currently under investigation by the SEC. Johnson said Herbalife’s dealings in China have been clean and if something unsavory is discovered, the company would rectify the problem. He added, “We're operating transparently. If the SEC is here nosing around, we're going to let people know about it." Cramer says he trusts Johnson but urged investors to research the allegations and the company before buying.

CEO Interview: Dr. Steven Quay, Nastech (NSTK)

After Nastech fell 38% on news that Procter & Gamble cancelled the partnership to produce an osteoporosis nasal spray, Cramer expressed consternation and asked Dr. Quay why the deal was cancelled. Dr. Quay responded NSTK could not provide dosages sufficient for PG and is working on increasing dosage for further approval. He also noted NSTK has an insulin drug and an obesity treatment in the pipeline. Cramer reiterated “no one makes any money panicking,” and encouraged a wait-and-see attitude toward NSTK.

Related: Ant & Sons on Nastech's problematic quarter.

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Comments

[jturano7423]

Nov.8th After the injustice has been served to long term NSTK investors and the ones who came aboard this year because of Jim Cramer's suggestion, "it is now a wait and see attitude".
Brilliant!
With No P&G payment, current expenses regarding the company and testing, a March 2008 Year End Earnings report for December 2007,which will be Poor, I believe either the stock goes to $4dollars, and they definitely have to raise new issues of stock to stay alive, or they go Bankrupt. The evidence has been overwhelming these past 3 months, that NEGATIViTY has overshadowed NSTK immensely. After the bad news and the big drop investors are told to wait & see? Cramer needs to be addressed by the SEC for making a mockery out of this stock to investors.
Instead of just saying I MADE A BAD CALL, he wants you to wait & see. I don't think Cramer's followers aren't listening to him anymore, do you?

[jturano7423]

On Nov.8th Cramer interview CEO Quay, Nstk, and said to his viewers"“no one makes any money panicking,” and encouraged a wait-and-see attitude toward NSTK.
This statement was made 24 hours after P&G dropped NST and NSTK lost about $6 dollars or 45%. Hence Nstk is now down to $3.70 cents or
another 52%. Yes Wait & See has been the order of the day.
What ever happened to sell and take your loss now?
What ever happened to sell and buy back in after the dust settles?
This is an investment advisors' Professional opinion?
And let's not forget he wanted you in NSTK on Oct.3rd. not ISIS. Look where ISIS is today compared to NSTK. At the rate of Debacles continuing, I think the networks will use Cramer's phrase as 'Wait & See' for the ratings to drop too.

[jturano7423]

JAN.17-UPDATE-NSTK- WELL"NO ONE MAKES MONEY PANICKING" AS
PER JIM CARMER NOV.7TH. A WAIT-IN-SEE ATTITUDE WAS ENCOURAGED BY JIM. GIVEN HIS STATUS, T.V. NOTORIETY, AND THE FACT THAT HE MORE THAN TOUTED THIS STOCK THAN ANY OTHER ON HIS T.V. SHOW, WOULDN'T YOU THINK HE WOULD DEEM IT NECESSARY TO GIVE AN UPDATE ON 'NSTK' BY NOW? IT'S 70 DAYS LATER, AND 50% LOWER, AND ARE THE INVESTORS ADHERING TO HIS LAST WORDS STILL? NOT PANICKING? COULD IT BE? OR DID HE ABANDON SHIP AND IS SAILING ONWARD INTO THE SUNSET? IN THE NEXT 60 DAYS THE YEAR END EARNINGS REPORT COMES OUT AND BY THEN THE STOCK SHOULD AND COULD BE AT $2.75. A VALUABLE LESSON AT LEAST SHOULD BE LEARNED BY ALL. THAT T.V. PERSONALITIES AND RESEARCH FIRMS CAN NOT BE TRUSTED PERIOD!

[jturano7423]

02/25/08 Cramer reiterated “no one makes any money panicking,” and encouraged a wait-and-see attitude toward NSTK.
Well at $2.02 now, I'd panick if I owned nstk!
Although it's too late and Terminal now!