Michael Delaney

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.

The Oil Business Could Be Worse (But Not Much)

With Q1-09 profits down 65% from Q1-08 profits, does this mean CVX is only 1/3 the company it was last year? No. It also does not mean that CVX will be twice the company next year, when Q1-10 profits are up 100% over Q1-09 profits. It's an illogical market and a chance to make money whenever the market is over-pessimistic or over-exuberant. IMHO, there is still plenty of room to make money in CVX if you get in on any pullback and you get a nice dividend while you wait a year or two.

Cramer's Lightning Round - Trinity Missed the Train (3/24/09)

AJ,

If a company's earnings have recently taken a hit, they may no longer have enough cash to pay the current dividend. Freeport McMoRan had a sharp reduction in sales and earnings last quarter, so they suspended their dividend ($0.00) in order to protect what cash they still had.

A rule of thumb: If the most recent earnings per share are at least twice the dividend, an argument could be made that the company will continue to be able to pay the current dividend.

However, it might be better to look at free cash flow and accumulated cash than to look at earnings.

Four of My Favorite Stocks

Mark,

All of your stocks are sensitive to the economy. Add a fifth stock in the healthcare area (GILD?, JNJ?, ABT?, SGP?) and you will be able to weather the rough spots a little better. Just a suggestion.

Any Kind of Return - Cramer's Stop Trading! (10/2/08)

Pfloyd234,
This article does not mention WB. What are you laughing about?