Jim Cramer's Stop Trading! 4/8/08: Much Ado about WaMu

Recap of Jim Cramer’s comments on Stop Trading! Tuesday April 8. Click on a stock ticker for more analysis.

Washington Mutual (WM): Cramer wouldn’t believe the hype aboutWamu, but agrees with CNBC’s David Faber and said the only reason to own it possibly was a potential raised offer from Wells Fargo. “Why would you want to be in this one, where the takeover cream is now gone?” He says the stock is grossly overvalued and should be “$9 to $10 max.”

Apple (AAPL): While Apple is still his favorite tech stock, Cramer says the recent run on Apple was based on nothing. Although the iPhone has been good, “I need to see new iterations of iPhone to get this thing moving. I also don’t think things go parabolic unless they represent fertilizer.”

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Comments

[Rob L:]

Jim Cramer's opinions change like the wind. At $200 he says buy Apple, then on the way down to $115 he bashes the company saying don't buy because their quarter was awful and finally starts up again but saying $150 is as high as it can go. It's at that level now only a few weeks later and again he's saying buy even though you could have picked it up $30 to $40 cheaper (like me adding to my position) while he was saying don't buy. If the market drops again he'll say don't buy then later change to buy and back and forth. What exactly has changed in the last few months in terms of Apple fundamentals that makes his thought process change so radically and so fast? To say that the recent rally has been based on nothing is absurd, the fact is that people have started to realize that the sell off in Apple was overdone because fundamentals haven't changed. We aren't going to be let down by this company, they are solid and a great long term buy.

2008 Apr 09 09:55 AM

[Zach Bass:]

There was a time when Jim Cramer was good for the average investor. His first books contained sage advice on the analysis of company and sector fundamentals, he inspired people to become more knowledgeable about their investments. But TV ruined him. He has become a whore to the medium. His show is a schtick, a situation comedy. His prognostications are a joke, metered on shock value rather than real value.

I simply dismiss his opinion on AAPL, because it's no longer an opinion, it's a barometer on public sentiment. What will get me noticed? His show, and his value as an analyst, is going to wane if he does not return to his roots. Probably too late.

-zach bass
zachbass.blogspot.com

2008 Apr 09 10:45 AM

[Moses:]

He is a tool

2008 Apr 09 12:49 PM

[Dr.Thomas E...:]

Lets face it the Insurance and Timeshare and Investment Banking mentors teach their reps bad habits. The mentors and representatives in Insurance and Investment banking and Timeshare think what they do is normal because the company masters live in a bubble as they only promote from within the sic code....The majority of babyboomers holding the assets as well as the private business owners think Insurance and Timeshare and Investment Banking mentors and representatives are nuts.... Go Figure.. The majority of US population is NOT buying into emotion!...

2008 Apr 10 12:47 AM

[Norman Lepo...:]

Why is Cramer still on the air? As Rob L says, his opinions change like the wind. Zach makes some good points as well. I change the channel as soon as I hear Cramer's voice. Cramer is one of the worst stock pickers I have ever seen.

2008 Apr 10 10:10 AM