Cramer's Stop Trading! Google's Bad News Bottom (3/24/11)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday March 24.

Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), MedcoHealth Solutions (NYSE:MHS), Express Scripts (NASDAQ:ESRX)

Cramer praised Fed Chairman Ben Bernanke for "telling it like it is," and being more direct than past Fed Chairmen who were imperious while Bernanke carries himself like a regular person. "He doesn't get the respect he deserves."

Google (GOOG) is getting hit with anti-trust investigations in the U.S. and restrictions on its reach in China, and yet the stock jumped on Thursday. Cramer called this a "bad news bottom," when analysts notice a stock going up on bad news, believe it is going higher and are ready to upgrade. He noticed similar "bad news bottoms" for Netflix (NFLX) and Amazon (AMZN).

MedcoHealth Solutions (MHS) has seen its share price in the doldrums because of an executive bribery scandal but that doesn't mean Express Scripts (ESRX) deserves to decline as well. If Medco is really in hot water, ESRX will be the main beneficiary.

Cramer isn't worried about a decline in oil if Gaddafi goes into exile, because oil companies don't care so much if they get $105 for oil or $95 if their production costs per barrel are only $20. "They are making fortunes whether oil is at $95 or $105."


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