Poor Jim

Cramer's Mad Money - 25 Rules for Investing (12/30/08)

Re: Cramer on calls

Recently I sold covered calls (i.e., on shares I already own) on three of my stocks.

A typical one was Oracle, which I bought 1000 shares of a couple of years ago when it was at 14, and is currently in the 16 range. I sold a call for $30 for January 2010 for a surprising amount of money -- $550.

Here's why I think it made sense: Since I bought ORCL, it has gone up to about $23 several times, but never higher, hovering between $20 and $23 until the stuff hit the fan this year (still 2008 as I write this).

Cramer's argument vs.calls is that you "limit your upside." Frankly, if Oracle hits 30 before the end of January 2010, I will be hysterically happy to have
more than doubled my money. And the call will have forced me to take a profit, which I probably wouldn't have the sense to do but would instead be hoping for even MORE.

And if my view of Oracle at $30 is that it's still a buy, I'll buy it on a dip.

Since Oracle, as far as I know, has never been as high as $30 -- certainly not in recent years -- I figure that my $550 is sheer profit. Not a ton of money, but these days ANY profit looks mighty good.

Actually, given the current state of share prices in general, if I had any cojones
I'd probably sell naked calls on Oracle for January 2010 at $30. But I'm too battered to be that gutsy.

Wall Street Breakfast: Must-Know News

"All 51 economists surveyed by the Philly Fed say we're in or on the brink of a recession that most say started in April, and will last for 14 months."

BRINK of a recession? Those economists must all be very young. We is in a recession and well into the Second Great Depression. It is a classic contraction which will affect everyone.

If government is smart (or is that an oxymoron?) we might see the same sort of infrastructure rebuilding we saw in the 1930s via WPA and PWA, etc. Roads, bridges, etc. are plumb wore out and need rebuilding. If we can get today's somewhat spoiled children to do a real day's physical labor for $20 a day,
a lot of needed work could get done.

Wall Street Breakfast: Must-Know News

Two thangs, as we say in Texas..

1.Hey, fellow journalists, you're late! We're not getting into a recession In the United States; we've been in one for close to a year now. And thanks to those brave representatives who voted against the first "bailout bill" we have already started the Second Great Depression.

2. Bank of America CEO Ken Lewis lost a lot of crediibility yesterday when he cut the BAC dividend 50%. Only a month or so ago, while he was speaking to and taking questions from a group of senior citizens in California, he said that he could see no reason now or in the future for a dividend cut. Now, it looks like he was fuld of sh-t.

Wall Street Breakfast: Must-Know News

Dick Fuld has been a day late and a dollar short right along, at least since June when Lehman was "discussing" selling off assets and the news got out, which caused Fuld to take his eye off the ball and start trying to find out, screaming, "Who leaked??!!"

He has constantly been playing catch-up, waiting too long to make the moves he could have made sooner, and by trying to save everything saving nothing....

except for his own net worth, which will obviously take a hit, but nothing like those his shareholders are taking.

The least Paulson could do is take away Fuld's passport.

Anybody got any other ideas?

Faith Doesn't Cut It - Cramer's Mad Money (8/29/08)

Strangely, none of the comments refer to Cramer's presentation -- the noisy, irrelevant sound effects, the objectionable shouting, screaming, ranting and raving which seems directed at attracting college-age viewers, the equally irrelevant "Boo-Yahs!"

Personally, I've found that much of what he says is sensible, but his way of saying it is frat-party juvenile, and I assume that's the audience he is aiming at.

I've noticed, in my on-and-off viewing, that occasionally a caller will tell Cramer that "my kids love you!" which isn't surprising because kids love clowns.

He's a bit much for grown-ups. I'd probably watch him every day if he'd just sit at a table and talk sense, because he's not only pretty smart, but unlike almost everyone you can speak with about stocks, he doesn't have an axe to grind on the subject.