Michael Delaney

'Survivor's Bounce' Coming to an End

Matt Shapiro of Stutland Equities and Bernie McSherry of Cuttone & Co. are positioning themselves for Dow 10,000, they said Tuesday. "We had two weeks of what I called airpocket micro-correction," Shapiro said. "The traders on the S&P 500 are selling out of those puts ... and they're actually buying calls on the fear the market might move a lot on higher earnings." McSherry had been betting against the market but said he was tired of fighting the rally.
"I have switched my bet ... We're going to [10,000]," he said.

Railroad Indicator: On Track for Recovery

Jakester,

BNSF was down 0.95% on 9/23. Hardly what I would call a slam. BNSF is down another 1.05% today (as of 1:30 pm). I would call a 2% drop in two days a buying opportunity.

I guess I'm just not ready to call this the beginning of a 10% to 20% pullback, as some bears are opining. But I have been wrong before. It's still too early to panic.

Cramer's Mad Money - Ignore Obama's Healthcare Speech (9/9/09)

Kaiser,

Cramer did not rip off his clients with massive churning. And Cramer never said that he ripped off his clients with massive churning. Cramers clients did very well (as did Cramer) and that is why more people wanted in his hedge fund than he could accommodate. People were turned away from Cramer Berkowitz.

If your dislike of Cramer causes you to believe that he is always wrong, then you have a closed mind and are missing investment idea opportunities. You should be listening to Cramer and Buffet and El Erian and CNBC and Fox Business and checking the Motley Fools and MSN Stock Scouter and Investors Business Daily and the Wall Street Journal, etc., etc. The more information you have, the better able you will be to make (and take full responsibility for) your own decisions. If Cramer bothers you too much, just turn him off. I find him interesting.

5 Anomalies in the Current U.S. Markets

DI,

I agree that a disproportionate amount of the daily volume is in junk like AIG, Citi, Fannie, Freddie, etc. But this volume is not being generated by corporate officers "dumping and running". It is being generated by gunslingers and hedge funds who find opportunity in high volatility areas to make money both long and short (sometimes in the same day!). I sincerely hope that a very insignifificant portion of the volume is an average citizen investor who says to himself "AIG sure is cheap. I think I'll buy some for my 401(k) and hold it for a few years".

There are dozens of reasons why corporate officers would want to sell. Maybe they had stock options about to expire and needed to exercise them. Maybe they found that great house on the beach in Costa Rica and need a few million in cash. Maybe they just need to diversify. But there is only one reason why corporate officers will buy more of their stock on the open market. And they should know their company's future prospects better than anyone else. When you find a company like that, it's a gift.

Cramer's Stop Trading! The Retail Rally Is Really Happening (8/26/09)

The Dear Leader has also lost some popularity points recently. Many Americans wanted to move left after eight years of government of, by and for the corporations. But many Americans do not want to move to the left, to the left, and to the left again, like Mark Martin at Daytona.

The most vehement of the JC haters are not typical investors. Most of them are traders and make more money on the short side than the long. The last thing a short perma-bear needs is a cheerleader on television every night, especially when a lot of people follow him. Perma-bears are generally grumpy people, but when they think someone is hitting them in the pocketbook, they get mean. Check out the flames on Stockpickr.

Cramer's Lightning Round - Royal Dutch Shell: Trim the Fat (8/20/09)

"But how long can this rally last without a pullback?" This is pretty much the same question I heard last year when a lot of people were asking "But how long can the market keep going down?". The answer to both questions is "Probably longer than you think".

At this point in time, there are a lot of investors (with a small impact to the market), and a lot of mutual funds (with a much larger impact on the market), and a lot of hedge funds (with a huge impact on the market) who were all afraid or too cautious to participate in this summer's rally. And people are asking why they missed the opportunity. Everytime we get a 3% pullback, the cash on the sidelines pours in. Eventually, we will exhaust this supply of cash and we will get a 5% to 10% pullback before the value guys start jumping in. That is why I still want high dividend stocks which will weather the storm a little better. Because I am not a trader and I am not going to try to guess when to get out and when to get back in the market.

In my opinion. But I could be wrong. I have zigged when I should have zagged several times in the past two years.

Neutral Tandem Offers an Attractive Entry

If you liked it at $27.07 on Monday, you gotta love it at $25.29 on Friday.

It's a Dow Theory Buy Signal: Time to Sell?

Paranoia strikes deep.
Into your heart it will creep ..........

P/E - Value Plays or Value Traps?

User 422955,

Windstream has a trailing EPS of $0.86, an estimated forward EPS of $0.88, and is paying a dividend of $1.00. How can this dividend be safe? It cannot.

I would not be surprised to see the dividend cut to $0.50. The current price is $7.97, so the dividend yield would be 6.2%, still a good return if the price per share remains constant or rises.

Cramer's Mad Money - When the Facts Change...(6/25/09)

And there is nothing wrong with being a neophyte. Cramer's books taught me what a PE ratio was, why growth is so important, how to buy a stock, etc. I am not a neophyte any longer, but I still pay attention to Cramer.

I do not buy stocks because Cramer likes them. Only a fool would buy something because somebody on television said to buy it. But only a fool would close his mind to new ideas and new ideas are what I take away from Mad Money. (and from Motley Fools, IBD, and Seeking Alpha).

If you do not like his personality, don't watch. But don't call me stupid because I do. And do you seriously think that Cramer has enough influence to move the price of RIG, BMY or AAPL? Really??

Cramer's Mad Money - Bye Bye, Knights Who Say NII (6/22/09)

General Electric/NBC will not permit Cramer to discuss small cap stocks because of their volatility; discussing them would move the price. Therefore, Cramer mostly talks about S&P 500 stocks, most of whom have several analysts studying them. What can I know about a stock that the analysts don't know?

Jim even talks about this in his books. To make big money, you have to find a good small stock that is not yet covered very well. I start with Investor's Business Daily. But I carry a trailing stop loss also, because small cap stocks not only rise more quickly than the overall market; when they fall, they fall hard and fast. Let's be careful out there. Oh, and have some fun. This is supposed to be fun.

Cramer's Mad Money - Housing Has Bottomed (6/16/09)

Mr. Ed,

No such thing as a phony rally. A rally is a rally. Buy'em when they're cheap because everbody hates'em. Sell'em when they've done well because everbody loves'em.

Cramer's Stop Trading! Say No to China IPOs (6/17/09)

Sovestor,

If you use low cost index funds, why do you have to diversify? Index funds are diversified.

Gilead Looks Good on Strong Sales and Pipeline

I think we all agree Gilead is a great biotechnology company and the products that they are developing will help to improve quality of life. But a great company does not always make a great investment. The reason it keeps revisiting the $42 - $44 range is that there are now people in Washington who truly believe that they know what's a "fair" price for these new products. And their decisions could seriously affect Gilead's bottom line.

"I know what you're thinking. Did Nancy Pelosi/Harry Reid/Barney Frank/Barack Obama fire six shots or only five? Well, to tell you the truth, in all this excitement, I've kinda lost track myself. But being as this is pricing issue a .44 Magnum, the most powerful handgun in the world, and would blow Gilead's head clean off, you've got to ask yourself one question: Do I feel lucky? Well, do ya, punk?"

How to Invest in Ocean Wave and Hyrdopower Sustainable Energy

Won't the tidal turbines kill baby dolphins? I am sure that there are some vocal minorities out there who are very passionate about baby dolphins. (or seals. or manatees. or whales.)