Buy Value - Cramer's Lightning Round (7/29/08)

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Tuesday, July 29.

 

Bullish Calls:

ABB Ltd. (ABB) -- “The stock was down last week they reported a monster quarter. I went over it with a fine tooth comb. The report was bullish. I see it going to $32.”

General Electric (GE) -- “General Electric like ABB is an infrastructure play. I like them both. I see GE going to $30.”

Wells Fargo Bank (WFC) -- “I like Wells Fargo a lot more than Huntington Bank.”

Transocean (RIG) -- “Transocean is out of favor because oil is down. I think you are right to concentrate on value. The stock has a P/E under 9. I am not abandoning the stock it is too good. The stock is going lower but I want to Buy, Buy, Buy.”

 Bearish Calls:

Garmin Limited (GRMN) -- “I consider it a commodity and I do not like commodities. Garmin could fall substantially from these levels. Sell! Sell! Sell!”

Huntington Bank (HBAN) -- “I am still not going to get behind Huntington. Sell into any rally. I like JPMorgan (JPM), Bank of America (BAC) and US Bank (USB).”

Authentec (AUTH) -- “No, No. This one is too speculative.”

Thoratec (THOR) -- “The stock is in the right kind of group but I have not finished doing research so I can’t recommend.”

Intrepid Potash (IPI) -- “I believe tomorrow Intrepid will be up. Sell into strength tomorrow.”

 

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Comments

[workout]

Cramer was behind Huntington Bank for at least the past year,had the CEO on the show 3 times that I saw. It was the only buy,buy, bank. Now he wants ride of it sell,sell..complete reversal,so what happened ?

[Leser]

Once one is a Cramerian one must always be a Cramerian or one may lose one's shirt. We're to become puppets and lemmings. If he talks to masses, masses will react and someone who doesn't jump with the masses--in and out like a trained seal--will get hurt. That someone may end up being thousands of faithfull buh-yahers over the long run.
Probably one should watch his show and think of a strategy somehow parrallel to what he's suggesting, but probably not exactly what he's doing. If Cramerica is all doing it, who's ahead in the game? Not the innocent person who bought when advised, but missed the magical program that says sell, sell, sell (because he isn't advising us on buy and hold.) I'd say it's generally better not to buy companies he's commenting on, especially when you see everyone jumping in on them. I don't know, perhaps check volume of shares sold and movement up in the P/E ratio to see if those items are getting over purchased.
Anyway, there are people jumping in like sharks to feast on some of the Cramerian innocents who are only doing what the C said to do, but perhaps only heard the first half of the message, because they didn't see the subsequent program when the guru said to sell.
The format of the program is too frenetic--not organized in a professional enough way. Otherwise he would tell and show in a timely way graphics about changes in previous advisement. A logical chart of some sort telling about whatever was mentioned could even be posted online--or tendencies and dramatic changes at the beginning or end of the program (updates) could be scrolled down briefly instead of having so much of the corny Stueck that has become a part of the sensationalism of the program. The antics are not teaching people to invest with calm logic and doing homework, as he says he wants us to do. They are teaching us to react viscerally. I think that investing should be done with a cool head, as much as one can, not with unnecessary childish antics to illustrate the point. We're not dolts, as this attitude of talking to us might imply.
No doubt about it, Cramer knows much much more than most of us ever will, but he would better serve us by modeling a more logical approach, not ranting. I've had my say (or rant.) (Obviously, I'm not interested in ratings--which is probably what the antics end up being about. His producers like them, too, no doubt.) However, I believe one can be informative and creative and humorous--and have good viewer numbers--without being sensational.
Cramer, I seriously hope your health holds up. Tone it down, man, and speak with us instead of shouting so much on the program. We'll all profit from the cool and you'll last longer on the program. You've got a really great t.v. personality without the extremism.

[kwityercryin]

You cannot buy a stock when JC says to buy it and sell it when he says to sell it, and make money. If you need somebody to tell you what to buy and when to buy it and how much to pay and when to sell and for what price, Mad Money is not the answer. Send the Gorilla $600 and they will hold your hand through the whole process. But where is the fun in that?

Mad Money is good for ideas, but you still have to do the research. Some of his ideas are good for 25 year old gunslingers. Others are better for us old f*rts. Some of his recommendations carry PEs of 70 or PEGs of 1.8 to 2.0. Not for me.

If JC touts a stock that your research says sounds good, please wait for a good buy-in point. Nothing wrecks returns by being too eager to buy and paying up. At least pick the lowest closing price from the last two or three weeks and put in a limit order. If it never executes, oh well. Find another.

Regarding missing the show where he says Sell! Sell! Sell! If you wait for JC to tell you to sell, you may be too late. (He talks about more buys in a week than sells so there may never be a sell sell sell). If you wait until the analysts downgrade, you will be too late. If you wait until IBD lowers its composite score, you will be too late. Pick some percentage dip off a high that you are uncomfortable with. If you hit your stop loss in heavier than normal volume, have the conviction to sell. You can always get back in later if the price continues to drop.

The Bottom Line: You need to decide what to buy and when and for how much. You need to stay diversified. You need to take some profits on the way up in case something bad happens while you are at work and not watching the market. And you have to sell when you hit your stop loss in heavy volume. There are no guarantees, but this will keep you out of too much trouble most of the time. Oh, and remember, this is supposed to be fun!

[Norman Lepoff, M.D.]

Do not listen to Cramer. Change the channel when he comes on and you will do much better in the long and short run. He is, in one word, awful!