For Everything, Wind - Stop Trading! (7/17/08)

Recap of Jim Cramer's comments on Stop Trading! Thursday July 17.

Be In Wind: Quanta Services (PWR), Owens Corning (OC), PPG Industries (PPG): The Texas Public Utilities Commission meeting Cramer was talking about earlier in the week happened Thursday, July 17. There are $4 billion worth of contracts coming, he said during Thursday's Stop Trading! as the state builds out its wind-power infrastructure to lure in alternative-energy businesses. Quanta should get the "lion's share" of those contracts.  But "everything wind is going to get a multiday move," Cramer said, "even with oil going down."  While oil has dropped about $5 today, these wind plays work as long as the price per barrel stays above $100.  Cramer recommended another stock with wind-power exposure, Owens Corning.  They make the composites for wind-mill blades, so the company should also get a lot of business out of the new Texas initiative.  Owens Corning is up about 12% today on rumors of a takeover by PPG Industries but Cramer doesn't think the deal will happen.  So he's "poo-pooing the rally," he said, "even though I like the stock long term."

 

Market Takes A Bite Out of Yum! Brands (YUM): Yum! Brands took a hit today after reporting that high raw costs are hurting the business. There's a chance Yum! could rebound if the next U.S. president got rid of the ethanol mandate at the center of this food inflation, but "the next three months are going to be difficult," Cramer said. He urged investors to keep this inflation in mind if they're considering buying any restaurant stocks.

 

Is the Storm Over? Fannie Mae (FNM), Freddie Mac (FRE): As to whether this week's rally means the hurricane is over, or it's merely the eye of the storm, Cramer pointed to the Securities and Exchange Commission's focus on the shorting of Fannie Mae and Freddie Mac. As long as an issuing of equity by the banks follows the move, he said, then "we'll be fine."

"Everybody needs to do a financing," Cramer said of the banks. "If they do financings, we can live to play again. If not, oil goes back up, and banks go back down."

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Comments

[CaptBob:]

Well you got me this time: I know that "Super Shill" Cramer is desperate to get a read, but hiding him behind someone else's buy-line is really a underhanded move!!
It's like stepping backward where you can't see and getting Sh*t on your shoes.

The proof that this "Putz" is worthless is contained in the article--. "As long as an issuing of equity by the banks follows the move, he said, then "we'll be fine."
Let me give the "Huckster" a "Bigg lightning Bolt"
We will Not be fine!!--The Banks will hoard equity, as their reserves are imaginary. As soon as someone goes over their phony books, they're going down so deep they'll need SCUBA to breathe. "As long as-----" This fool needs a curve sign a mile up the road, not to drive off a cliff!!.

If the Best mortgage out there was the Titanic, the whole bunch -(including Foolie & Fakee)-would be icebergs with only the tips showing above water as a warning.

2008 Jul 18 11:19 AM

[fireball:]

CAPTBOB why dont u say what u really mean? just kidding. as a poster who i pay attention to i am interested in your opinions. seems like pbr was good advice. do you think he just runs out in front of the crowd and pretends to lead? anyway u gave me a warier eye concerning cramer. i guess we have to be wary anywhere we look now.

2008 Jul 18 12:32 PM

[CaptBob:]

Fireball; Anytime you see an "analyst" performing with party noisemakers and backed up with a "Barnyard" applause section--Be very very wary!!
The deep thinkers are comfortably seated, speak very quietly, and usually sell their conclusions.
The County Fair, Midway hucksters have Concluded they have something to sell--Like a crazy glue, three headed baby. They're backed up by the Stockyards too.
I've stopped listening to this guy, the louder he is, the more often wrong.

2008 Jul 18 02:08 PM

[chriscql:]

Why so ugly, fellas? I've been watching Cramer for ages. Sometimes I follow up on a stock I never heard of before and have done extremely well. EXTREMELY well. Other times I've taken a bath. Just like with my esteemed well-meaning broker. Personally, I think Cramer serves a very real service for relatively intelligent people who have no other boob tube source of how the market rips us all off given half a chance.

2008 Jul 18 02:40 PM

[fireball:]

CAPTBOB thanks that makes good sense to me. like they say even a broken watch is right twice a day. sometimes we get lucky. i am so glad circumstances made me sell 7125 shares of rf before all hell broke loose. i did not see it coming. i cannot see these banks coming back for at least 3 years maybe 10. the ones that survive that is. i did see long ago that a bank liscence was a liscence to steal. i just did not see that they had surpassed even what i was aware of. i believe but may be off a few dollars that they can loan $15 for every dollar we deposit. that seemed crazy enough to me. i guess that just was not enough to satisfy. i would imagine that like me several people are sitting on more and more cash on hand so i only see them getting weaker as the next credit waves hit. anyway captbob i always take notice of what you have to say, thanx again.

2008 Jul 18 02:45 PM

[fireball:]

CHRISCQL not trying to be ugly. i have read a lot of captbobs posts and over time have gained respect. i know one thing for sure. the brokers are more lost than the traders and investors. i switched to online buying and selling because after arguing with me on bhp, ngs, and io, she started asking me what i was going to buy next. since i do not ask her firm for advice the commissions were a waste. they still hold my bhp shares but i closed the others and took the cash out. i now see green on the balance much quicker. just remember no matter how it works out for you the broker gets paid. when she saw i was pulling out she recomended suncorp. i said duh..... transfer the money.

2008 Jul 18 03:11 PM

[donzo:]

I have gotten some real jewels from Kramer - and some late to market advice too. I appreciated his cautionary 5 yr view. The small rollers need something other than optimistic hype. The 'Big Boys' will be following a different drummer anyway all the while fee d ing on the small investor

2008 Oct 16 11:10 AM