Jim Cramer's Stop Trading! 2/26/08: Much Ado about Price Wars

Recap of Jim Cramer’s comments on Stop Trading! Tuesday February 26. Click on a stock ticker for more analysis:

Verizon (VZ), Sprint (S), AT &T (T): The Street is worried VZ is declaring a price war with its unlimited call package, a move which led to T’s unveiling of a similar deal. Cramer thinks these price war fears are “much ado about nothing” and considers the possibility that VZ could drive Sprint out of business. Cramer is bullish on VZ because it is taking on cable companies with its triple-play FiOS service and has a great dividend.

Starbucks (SBUX): Cramer is confident that CEO Howard Schultz will revive moribund Starbucks, although, as in the case of McDonald’s, the comeback may take a year. He likes Schultz’s decision to close excess stores and believes the stock has bottomed and is ready to be bought.

IBM (IBM), Google (GOOG), Apple (AAPL), Research in Motion (RIMM): Cramer called IBM’s quarter “unbelievable” and prefers it to his former horsemen, GOOG and AAPL, which reported lackluster quarters. The only horseman left worth betting on is RIMM. However, “nobody cares” about RIMM’s great quarter, said Cramer.

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Comments

[Jon T]

Since when could anybody describe Apple's last (record breaking) results 'lacklustre'?

Possibly, their guidance was, but only against stupid expectations from a bunch ignorant whatsits who commentate on this stuff.

Amazing.

[top_tier]

"Cramer called IBM’s quarter “unbelievable” and prefers it to his former horsemen, GOOG and AAPL, which reported lackluster quarters."

More disinformation by the master Mad Money hypster. Lackluster quarter? Apple reported the best quarter in their history last quarter beating expectations as usual (this was their fiscal 1st quarter). They were under the analysts guidance for this coming quarter (is that unusual for them?). Let's get real for a change.

[vnewspaper]

Maybe Jim Cramer forgot to notice that the $15 billion buyback actually adds about 65 cents to this years earnings. Not to mention raising earnings by 5 cents at the same time.

The reality is that IBM just reduced it's cash position and lowered it's guidance by 60 cents. Depending of course on how you want to look at it.