drmalaka

Soup Target; Cramer's Mad Money (7/22/08)

Cramer is a fool. Last week he said C was going to single digits. Which one is it? Before that he said stay away from banks when they reach single digits, now WM and WB are good buys?

As for oil, its drop is a bad macro event. Oil is dropping because of a fear that global demand will drop because of a global slow down. Duh, a global slow down is not good for equities, it is bad. Global growth is all that has kept this theoretical market going at all.

Chesapeake Energy Appears Very Well Positioned

Note that CHK will not benefit as much as one would think becuase of rising nat gas prices as the company hedges a lot of its production. The CEO was interviewed recently and he mentioned how he owns too much of the company to be beholden to changes in gas prices.

In the same interview he talked about his recent purchases of the stock (a massive amount I believe and I think he mentioned he had 31 million shares, not sure if this is correct or includes options). He said flat out in the interview that he thinks the stock has a double. This is not the type of comment a competent CEO makes off the cuff. I assume the SEC would not be to happy if he were selling and pumping the stock on the way up. That is a true believer and I can not imagine anyone else who has more info about how this company will do.