jcreech

Can't Turn My Back - Cramer's Lightning Round (8/26/08)

To be fair, his response was in the lightening round - which is more of a take on the sector. Even when he was doing his head-to-head with Lowes and Home Depot, he made it clear that investing in this sector was premature. He also spent a good deal of time that show discussing that the housing sector recovery was about 10 months away.

Given all that, I am long on LL, but I agree with Cramer that the sector has hurt the PPS. Because the market lumps LL in with all of the other home improvement stocks, its tremendous earnings, ROE, ROA, etc. have done little to enhance the PPS. I took his message to be that given the state of the sector, LL is too dangerous of a speculation now; if you are going to invest in the sector anyway, you should choose Lowes as the best in breed. As long as LL continues to grow like it has, it will eventually be recognized by the market, but I no longer expect that recognition to come immediately - I expect that recognition to come sometime in the spring, but it is possible that it might come as early as the next quarterly report. Any earlier movement in the PPS will be squelched quickly by profit taking.


On Aug 27 11:17 AM Norman Lepoff, M.D. wrote:

> I remember when he loved F at 9. This guy does not belong on the
> air.