Big K

Cramer's Mad Money - Unhealthy Interest in AIG (5/14/09)

Motley Fool says NAT raises dividend money by selling stock. Cash flow from operations doesn't cover the dividend. I've also heard this from other reliable sources such as Value Line. Cramer seems to disagree. Cramer needs to explain the discrepancy here, not simply deny it. Give us the numbers in a sober detailed analysis of the balance sheets. Yes, NAT has no debt and is not a failing company, but I don't understand how they can pay out dividends that are bigger than their cash flow and/or earnings. Apparently, dilution is the solution to dividend contribution.

The Bull Run Begins This Week

I can see many people have a negative view of the future of our economy and stock market. With the vast majority of people so bearish, I can think there is a possibility of a bull run coming soon. When everybody is bearish, all who are going to sell have already done so, and big money is sitting on the sideline. At this point only long-term investors remain, so there are few people to sell on the bad news, hence apparent support. The bearish sentiments have been priced in the market. Possibly, many of the above bears have put in short positions, which is even more bullish. The market usually moves in the direction opposite to what the majority expect. This makes perfect sense. Everyone has already positioned themselves for the anticipated direction. Why would all these chicken littles saying armageddon is coming still be invested in the market? Of course they are not, because once armageddon comes, it's already too late. Therefore, I think there is a higher probability the market will go up rather than down.