Falling Timbers - Cramer's Stop Trading! (4/24/08)

Recap of Jim Cramer’s comments on Stop Trading! Thursday April 24. Click on a stock ticker for more analysis.

Occidental Petroleum (OXY): The market is beating up oils, and Cramer thinks this pummeling will continue until Monday, when he would buy OXY. He is amazed that OXY is such an overlooked oil and likes it for its exposure to natural gas.

Weyerhaeuser (WY), Temple-Inland (TIN), Louisiana-Pacific Corp (LPX): In spite of timber's falling prices, Cramer is bullish on the sector because he feels it will get lumped together with agriculture. He likes WY the best for its yield.

Sovereign Bancorp (SOV), Ambac (ABK), Merrill Lynch (MER): Cramer thinks SOV is in trouble after Moody's cut ratings and analysts slashed estimates. He comments no one wants to buy SOV and says it was spared only because Thursday was an up day. Cramer notes MER should have been down on ABK's bearish news, but rallied on the announcement it will not cut its dividend.

Apple (AAPL), Hewlett Packard (HPQ), Dell (DELL): Cramer chose gadget stock Apple as the best way to play the $600 stimulus package. He notes HPQ and Dell are becoming radio companies and AAPL is becoming a TV company.

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Comments

[Moses]

I think Seeking Alpha is really hurting its reputation by publishing anything this guy says. This guy is the ultimate buy high, sell low trend follower. I can't imagine the people that actually call into his show make any money.

[BMWTwisty]

Cramer cracks me up - he's so whacked. He's just now finding out about iChat??? And it's the greatest thing since Swiss Cheese? What a moron. Now he's finally seen the light and is big on Apple. Pfffftt...

[Norman Lepoff, M.D.]

Moses is right, but Seeking Alpha is reporting news. It is CNBC that should take Cramer off the air. I change the channel as soon as he comes on. This is bad for CNBC as I do not return for further programs. Everyone I know does the same. Perhaps they should at least put Larry Kudlow into Cramer's time slot.

[mmmmoney]

Cramer can make you money if you do the exact opposite of what he recommends. There have been some good buys caused by the credit crisis. One such was EROC, its price went way down when Lehman Bros dumped their stock in this good company so they would have cash to avoid the same fate as Bear Stearns. These companies that hold large quantities of shares in companies have a heck of a time dumping a lot of shares without affecting the price in a major way. There are many such companies whose share price has fallen only due to these big companies dumping shares to get cash. Think about it.

[gabe borenstein]

I have seen Mr Cramer recommending Taser at a $ 90 as a buy and then I have observed the stock imploding .This has happened to quite a few of his recommendations .Now we know that he is human.Let's revert to AMBAC and other insurers as well.The "insured" paper is continously "devalued" forcing various parties to reflect the unrealized losses in their qurterly financial reports,the good news is that the unrealized losses are reflection of the worst case scenario.The economy is on the verge of a record rebound .The housing market will recover by the third quarter of this year.The CDOs and all derivatives of the subprime structured paper will stabilize and stage a major rally( recovery).All the unrealized losses will turn into mega realized profits. All of the financials including bond insurers will be gapping up. Most likely the financials will outperform any other sector.

[R. Richard Schweitzer]

S A's continued publication of summaries of the "pops" in TV financial shows is a good service. We are provided a snapshot of some of the influences on those who go "Barefoot in the Bazzar."

As to Cramer, he does advise what few probably do - do your homework, learn what you are doing and be sure of why you do it.
Most cogent self-directed investors (and traders - Cramer's metre) simply don't have time for the whole of any of the "pops," despite their content and kinds of coverage.

So, thank you S A!