Investment

» PEIC - "The worst is over in housing." - Nov 8

Recap of Jim Cramer's comments on Stop Trading! Tuesday November 7.
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Toll Brothers (TOL) - Cramer sees the modest 12 cent decline of this stock to $27.93 as hope for housing. "If Toll is so bad, why isn't it down a couple of smackers?" he asked, noting that it has partially recovered from its low of $22, leading Cramer to declare "the worst is over in housing." Concerning Toll's management, Cramer commented, "They didn't just fall off the turnip truck ...They aren't bozos."
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Yahoo (YHOO) Four Seasons (FS) - Although Cramer thinks that Yahoo's management did fall off a turnip truck, he notes the stock is up 19% off of last month's terrible quarter. He added that "this isn't a private equity situation, " although after yesterday's deal with Four Seasons "anything is possible. "
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Crocs (CROX) and Mastercard (MA): Cramer notes that Crox was up 9% and has doubled since June. He calls CROX "the greatest short squeeze since Mastercard" which has jumped 30%. Cramer commented that the shorts "are going to be eating Crocs."

-- posted by PEIC

» PEIC - Nov. 8 Jim Cramer's Mad Money - AAPL to $100 by '07

Mastercard (MA), Capital One (COF), Fannie Mae (FNM), Apple (AAPL) and Cisco (CSCO)
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Although Cramer notes that Democrats have historically been better for consumers than investors, his advice for those who are tempted to "freak out and stay out" of stocks is not to worry, since the Democrats won't affect corporations that much. To explain why there was a rally on the news of the Democratic sweep, Cramer discusses his Big Bad Event theory, which says that once an event happens, the market acts normally again. Those who have oil, pharma and defense stocks need to keep an eye on Washington, suggests Cramer, although Mastercard, which Cramer expects to go up, will not be affected and neither will Capital One, which Cramer says is "very cheap." Also, "The Democrats love Fannie Mae, so this stock is going to take its anointed status," Cramer said. He also likes Cisco and Apple, which he thinks will move to $100 by the holidays.
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CEO Interview: Mel Karmazin of Sirius Satellite Radio (SIRI)
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Cramer called SIRI a high growth stock, and asked Mel Karmazin how he lowered his acquisition cost by 23%. "It's what we said would happen," Karmazin said. "As we get more and more volume out there and subsidies go down, we're very much on track to get it down." When asked about Howard Stern, Karmazin said that Stern brought subscriptions up from 600,000 to 5.1 million. He added that Nascar "is a very big deal" and it "starts in January and will last for five years ... We think it is a big driver, and coming off the holiday season, it will be a big catalyst for the company." Although Karmazin expects the holiday season to be a "gangbuster quarter," he says that the company will have to work hard to reach its number. Finally, when Cramer asked Karmazin the burning question he has repeated in many of his shows: Will Sirius merge with XM Satellite Radio, (XMSR)? Karmazin replied that while "there is value creation" in such a merger, he would rather focus on long-term growth at Sirius. "We don't need to do a deal, and don't know if we ever will do a deal," he said.
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Lightning Round
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Bullish calls:

E*Trade (ET): 'I think ET has become the gold standard of the electronic brokers. Mitch Kaplan has yet to do anything other than deliver, and deliver and deliver again! He's the winner. I'm bullish. '
Yamana Gold (AUY): 'I need to go with AUY - that's my favorite in the game.'
NYSE Group (NYX): 'Take some ICE off the table, and put some in NYX.'
Charming Shoppes (CHRS): 'CHRS is back! It's making it.'
TJX (TJX)
Dress Barn (DBRN): 'And BRN is down enough that that's a buy too.'
Limited (LTD)
Disney (DIS): 'I think DIS is going to have a much better-than-expected quarter. I think DIS got good theme park numbers. Gasoline's come down. I totally believe that DIS is going to $35!'
Exelon (EXC)
Duke Energy (DUK)
Valero Energy (VLO): 'I'm going to send you to VLO. Why? Because VLO's buying back stock; because VLO's an inexpensive stock. I don't really care for the refiners, but if you need a refiner, that's the one.'
Chevron (CVX): I'd rather see you in CVX, which reported a magnificient quarter, and it out of the doghouse.
Safeway (SWY): '... buy what could be my new favorite - SWY!'
J.C. Penney (JCP)
Kohl's (KSS)
CSX (CSX): 'Michael Ward is a railroad man, and he is the CEO of CSX. Their quarter's going to be good. Ward told you it was not a cyclical play; he said it was a secular growth stock.'
Sysco (SYY)
International Paper (IP): 'Remember, I put it on a milk carton, and I called it a forgotten stock, and I would like to forget how bad that last quarter was. I like it, but it really is like watching paper be made.'
Lundin Mining (LMC): 'And I'm sending you to LMC, and I want to stick it out, because it's also got zinc. That's the one to hold. That's the one to stay with.'

Bearish calls:

Crystallex (KRY): 'No matter what I do, I cannot get past the fact that Chavez [i.e., President of Venezuela] is holding up KRY.'
SanDisk (SNDK): 'One of the few tech stocks that I cannot get behind. There's pricing pressure in flash, and when there's pricing pressure in flash, sell, sell, sell! Do not be seduced!'
InterContinental Exchange (ICE): 'It sells at twice its growth multiple. We know on Mad Money, that once we pay that much, there's very little upside without danger.'
TXU (TXU): 'I was cut to the quick by that quarter quite frankly. I did not know that they were missing their earnings that much. I don't like that. I have been saying that TXU is best of breed. I think it's now in the uh, uh category. I am trying to replace it. '
Frontier Oil (FTO)
Ahold (AHO): 'I would sell AHO, and buy what could be my new favorite - SWY!'
Senomyx (SNMX): 'I was thrown by the quarter. We talked about this stock. This is a flavor and fragrance company ... I should not have gone down in the lion's den in SNMX.'
DSW (DSW):'I think the stock's up too much.'
Kinross Gold (KGC): I've studied this company and know it well. I think KGC buying BGO - I'd ring the register on KGC.
Zoran (ZRAN): 'I've lost too much money in ZRAN. This is one of those little semiconductor companies that go into a lot of different products. I can't bless it. It's been too inconsistent.'
Evergreen Solar (ESLR): 'No! I said ring the register after the election.'
Encore Wire (WIRE): 'I think it's a copper situation; copper's gone up in price. I don't want to touch it.'
Northgate Minerals (NXG): 'I don't like NXG as much as I like LMC.'

-- posted by PEIC

» PEIC - Nov.14

KBR and Halliburton (HAL)

Cramer dedicated Tuesday's show to discussing IPOs, and began with Halliburton's engineering and construction unit, Kellogg, Brown and Root which is a "sickeningly cheap" IPO because of the "political baggage" connected with its contracts in Iraq. However, the company already has $15 billion worth of projects in the pipeline and won't be hurt by politics, he said. Cramer notes that the IPO is "vastly oversubscribed" and investors should get into the stock through Halliburton, which has the lowest multiple of any other oil, rather than waiting for the delayed IPO. He believes that both will go up once KBR goes public.
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New York Mercantile Exchange, New York Stock Exchange (NYSE), International Securities Exchange (ISE), Chicago Mercantile Exchange (CME)

"The big Mack Daddy IPO of this week is the New York Mercantile Exchange," Cramer commented, noting that Nymex increased the size of the IPO due to high demand. He thinks that Nymex will be "fantastic" and says that there is a a quiet bull market in various exchanges, including NYSE which Cramer predicts will go to at least $200 from $90, ISE, which is up %150 since it went public in 2005, and CME, which has increased 1,300 in four years. Even if Nymex is 25 points higher than the initial price, Cramer would buy it, and if it is at 15, he would grab double. However, Cramer urged investors not to pick up an entire position at once and to use limit orders when buying.
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Hertz, Sealy (ZZ), Ford (F)

Cramer tells viewers not to touch Hertz, which he compares to Sealy, one of his "worst picks." Hertz's debt piled up and its net income fell after Ford sold it to private equity firms, and he says that 60 % of the $1.6 billion raised for the IPO will be used to cover the loan taken out to pay for a special dividend. Cramer adds that, in any case, the car rental business is "not so great."

CEO Interview: Gary Henley of Wright Medical (WMGI)

Cramer asked Gary Henley why analysts are concerned about WMGI's stock and he responded, "I don't know, you're going to have to ask them. I thought it was a pretty good quarter." He added that he expects the company to do well since it's guidance for 2007 is 9% to 11% and the market is only growing at 8%. When Cramer asked him about possible impact of the Democratic Congress on his company, Henley said he preferred not to comment on political issues. "We're focused on our products and our market, and we're feeling pretty good about that," said Gary. Cramer agreed and gave WMGI a "triple buy" since it is down and had good prospects.

Final Note: On Pharma with GlaxoSmithKline (GSK)
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Cramer noted that there is a rally in the drug sector and would invest. He likes GSK because it is "the cheapest with the highest yield."
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Jim Cramer's Mad Money Lightning Round

Bullish calls:

General Cable (BGC): 'BGC is one thumb up, not way up, because it's too high versus the other cyclical components.'
Robbins & Myers (RBN): 'Two thumbs up, way up. I wish it weren't at its 52-week high.'
Amgen (AMGN): 'I would rather buy AMGN on the dip, than I would be the PDLI ... I just need to go with a little safety here. AMGN's right for me.'
Harley-Davidson (HOG): 'A bunch of clowns - I mean a bunch of analysts - downgraded HOG recently, obviously not understanding the brand. HOG you should not sell. This, by the way, is the single best transport name that we make ... It's too cheap ... I'm giving it a triple buy. Buy, buy, buy!'
Nice Systems (NICE): 'NICE, by the way, wins gigunda contract for the MTA in New York.'
Flir Systems (FLIR)
Continental Airlines (CAL): 'What I do like though is CAL on a pullback'
UAL (UAUA)
Countrywide Financial (CFC): 'My favorite - Angelo Muzzillo. Angelo is much better at CFC than I like NDE.'

Bearish calls:

Borders (BGP): 'I say take it off the table. Enough gain. I don't want to be affiliated with a stock that I recommended at $19, that's now gone to $24.'
Encore Wire (WIRE): ' a lot of people have been pushing me on this WIRE. That I'm not interested in.'
PDL BioPharma (PDLI): 'It's actually had a sales explosion. I would rather buy AMGN on the dip, than I would be the PDLI.'
American Science & Engineering (ASEI): 'I am concerned because you know that, when it comes to bomb detection, I would much, much rather be in NICE or FLR.'
JetBlue Airways (JBLU): 'My friend, even though I like the guy who runs the company, it just had a 40% move. I would like you to ring the register.'
IndyMac Bancorp (NDE): 'Now, in pure, pure, humble humility, I missed the NDE move.'

-- posted by PEIC

» PEIC - Nov 21 Google - Stop Trading! & Real Money Recaps

Google (GOOG): When it comes to growth stocks, Google is "the only game in town" for mutual fund managers, says Cramer, and he predicts that the the leading internet company will reach $750 if interest rates don't rise.
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Goldman Sachs (GS) and Wells Fargo (WFC): Cramer confesses that he is puzzled by the fact that GS is "such a big discount" when it has great talent, performs well and could reach $225 if it were give the same price-to-earnings multiple as WFC.
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Deere (DE): Deere's rise after light production and unambitious forecasts proves that the market is in "half full mode," remarks Cramer: "The shorts are dying on this one." He predicts that the stock which has climbed $5 to $94 will keep going to $100.
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Boeing (BA), New York Stock Exchange (NYX), Mastercard (MA), Goldman Sachs (GS), Sears (SHLD), Nymex (NMX)
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The takeover frenzy on Monday did not send the market up, noted Cramer, because these acquisitions were in mineral, real estate and steel sectors that don't need to move higher. Cramer gave his lists of "annointed stocks" which included: BA, GOOG, NYX, MA. "This is where the money is being made," he said. "It's not only on takeovers, but on earnings." While some stocks on this list seem costly, Cramer says that they are cheap compared to the profits they will bring, and notes that NYX went up 10 points this week, and if valued like Nymex, NYSE would be sitting at $250. Cramer suggested using any weakness to buy good stocks also in the infrastructure, energy and diversified industrial sectors.
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UAL (UAUA) and Continental (CAL) - "The airlines are ramping furiously," remarked Cramer who likes UAL and says CAL is a "terrific company." He predicts this trend will continue because the airlines are in acquisition mode. "There are so many ways to win," he continued. "This market is going higher."
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Lowe's (LOW), Medtronic (MDT), and Deere (DE) - After a downgrade and a bad quarter, Lowe's resisted decline which leads Cramer to the conclusion that "the worst is over for Lowe's, just as the worst is over for homebuilders." He also discussed MDT and DE which are both up $4. Cramer likes Deere because it has a "monster short position that isn't working out," and since it has had a "miracle run," Cramer suggests selling half and holding half. Cramer says that Medtronic is a hold and added that it is "finally going to start rolling" after a solid quarter.
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Bullish calls:
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Best Buy (BBY): Cramer sees growth potential for this company.
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GameStop (GME): This is a "terrific" hardware and software company, says Cramer.
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Allergan (AGN): a "best-of-breed" stock, according to Cramer.
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Apple (AAPL): Cramer says that people who hold onto Apple are not hogs and are going to see it run from $87 to $100.
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FedEx (FDX): This stock is a good way to play the online holiday shopping season.
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Neutral/Bearish calls:
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Mentor (MNT): When asked about owning this stock for silicon breast implants, Cramer said he preferred Allergan.
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Crocs (CROX): Cramer says that investors have made enough money with CROX and he is not bullish anymore.
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Sony (SNE): Playstation will probably not have an immense effect on Sony which needs to break itself up, according to Cramer.

-- posted by PEIC

» PEIC - Cramer Nov. 21 Mad Money

Child's Play: Hasbro (HAS), Mattel (MAT), Marvel (MVL)

Since it's the time of year for toys, Cramer discussed Mattel and Hasbro, and ruled out owning both stocks for the sake of diversification. Although Mattel has steady gross margins and a strong buyback strategy, Cramer would rather own HAS because he thinks its toys are better. Although he doesn't think that the recall of Polly Pocket will hurt the company and notes the success of American Girl, Cramer thinks all Mattel can do is a rehash of Elmo or Barbie, while Hasbro's Transformers are the inspiration for a film that should be a blockbuster, and Hasbro has recently made a deal with Marvel Comics to create a line of Spiderman toys. Cramer adds that board games are back and expects a big turnaround for Hasbro.
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KB Home (KBH), Cyberonics (CYBX) and Medtronic (MDT)

When a company is beset with an options backdating scandal, letting go of the CEO bodes well for the stock, says Cramer. This is what happened with KB Home, which produced a 10% profit in only two days. There is still time to cash in on Cyberonics, which is "ready to run" as CEO Skip Cummins walks away. Cramer thinks that Cyberonics' involvement in such a scandal is a sign that the CEO knew that there was going to be an upside down the line. Also, the CEO was weighing down the stock for a long time and was bad for the company. Cramer thinks Medtronic may acquire CYBX, but if not, the stock is too high. However, he would buy CYBX when it goes down.
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KB Home (KBH), Cyberonics (CYBX) and Medtronic (MDT)

When a company is beset with an options backdating scandal, letting go of the CEO bodes well for the stock, says Cramer. This is what happened with KB Home, which produced a 10% profit in only two days. There is still time to cash in on Cyberonics, which is "ready to run" as CEO Skip Cummins walks away. Cramer thinks that Cyberonics' involvement in such a scandal is a sign that the CEO knew that there was going to be an upside down the line. Also, the CEO was weighing down the stock for a long time and was bad for the company. Cramer thinks Medtronic may acquire CYBX, but if not, the stock is too high. However, he would buy CYBX when it goes down.
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CEO Interview: Terry Lungren, Federated Department Stores (FD)

When Cramer asked Terry Lungren about FD's merger with May Department Stores, Lungren responded that although it is earlier than expected, everything is on track. Responding to Cramer's question of how to encourage customers to buy even when there isn't a sale, Lungren said that FD has the strategy of offering better value more frequently. Shoppers do not have to think twice about going shopping when they know that they are going to find good values without the gimmicks. Cramer commented that FD is about to move and is a "triple buy."
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BEA Systems (BEAS), Rackable Systems (RACK), Network Appliance (NTAP), IBM (IBM)

In spite of options-backdating headaches and disappointing revenues, BEA Systems is a buy, according to Cramer, because it has strong exposure to China even though this isn't yet reflected in its numbers. Cramer criticizes analysts who carried out the double downgrade of BEAS because they scared investors off of a good stock. The end of the options investigation in three weeks should be a catalyst to propel BEAS, says Cramer, as with RACK and NTAP, which are heading higher. BEAS was softer than expected and raised estimates, and Cramer notes that it is at the cutting edge of technology and IBM is not a threat. Cramer thinks BEAS could be taken over since it declined 15% . Finally, BEAS has an abundance of cash and is a buy for the long-term.

Kramer's Mad Money Lightning Round

Bullish calls:

Best Buy (BBY): 'If you want to buy big box, you go to BBY. That's where people are shopping for Christmas.'
Sirius Satellite Radio (SIRI): ' I can't believe this stock is back under $4 bucks ... Meanwhile, XMSR is just percolating along. I reiterate that I think that SIRI is the buy in the group. I am not backing away just because the stock acts bad; that's what sissies do!'
L-1 Identity (ID): ' I like FLR; you know that I like NICE; and I like ID.'
Fluor Inc. (FLR)
Nice Systems (NICE)
New York Stock Exchange (NYX): 'The right horse - even at these rarified levels where you can't borrow a share - and people are paying people 15% to be able to borrow it - is NYX! John Thane rocks!'
Amer Cap Strategies (ACAS): ' Historically, people have been worried about this kind of mezzanine financing. Those people are worry warts. They're wrong. I say boo to them. This is a good company with a 7% yield.'
Mastercard (MA)
Goldman Sachs (GS)
Google (GOOG): ' ... the unbelievable GOOG story - buy, buy, buy!
IBM (IBM): 'You need to go to IBM.'
J.C. Penney: (JCP): 'We're going to the guys who people go to for aspirational shopping... We are going to JCP.'

Bearish calls:

Arch Chemicals (ARJ): 'Between PPG and GGC, let alone the downgrade of DOW today, I am in total 'don't touch' mode! Sell, sell, sell! I don't want you anywhere near them. The pin action is just terrible!'
PPG Ind. (PPG)
Georgia Gulf Gp (GGC)
Dow Chemical (DOW)
Haverty Furniture (HVT): 'What? Do you like the furniture game? The furniture game's a bad game, my friend.'
Nordic Am Tanker Ship (NAT)
Vasco Data Security (VDSI): 'I like ID [and FLR and NICE] More - all of them more than your play, my friend.'
Nasdaq (NDAQ): 'I have nothing against NDAQ. It's just that that's the wrong horse, my friend!'
Tyco Intl (TYC): 'I don't know. It seems like it's just a creepin' stock. Maybe it goes to $32, $33. There are so many explosive stocks out there.'
Intermec Inc (IN):'I don't know. It seems like it's just a creepin' stock. Maybe it goes to $32, $33. There are so many explosive stocks out there.'
Dollar General (DG): 'Both DG and FDO, no! NO!'
Family Dollar (FDO)
Wal-Mart (WMT): 'And no to WMT too!'

Happy thanksgiving!!!!

-- posted by PEIC

» apharris - Cramer's Report Card

Year to date, the S&P 500 index is up about 12% and the Russell 2000 index is up a little over 16%. For the same period, Jim Cramer's Action Alerts Plus portfolio is up 3.89%.

http://allallan.blogspot.com

-- posted by apharris

» Normxxx - Miscellany...

Miscellany... [¹]

By TheBigPicture | 1 December 2006

Bozo Hedge Funds in Financial Press

Jim Cramer on CNBC:

• This sell off has been manipulated by "Bozo Hedge Funds."
• Its caused by Hedge fund redemptions.
• Hedge funds are manipulating the markets down; Jim could "scare the S&P down 2%"
• Don't be scared, start buying stocks right here. The hard landing scenario is a scare case by the Bears. Market is over reacting to the economic news, ⇒⇒back up the truck and start buying now.

He does admit the economy is slowing down, and he also likes Health Care (a classic defensive sector).

Amusing take via Welling@Weeden:

http://bigpicture.typepad.com/comments/i...

Buh-Bye Goldilocks

On CNBC, the pundits are talking about how the most recent spate of data has put Goldilocks scenario "in danger." I must admit to finding it amusing how much faith so many players had put into 'Goldilocks,' a most unusual and unlikely scenario.

The latest data forces me to revise my 50% possibility of a recession in 2007/08 up to 60%. GDP for Q4 '06 is likely to be between 0.5% - 1.5% (or worse, if Holiday sales keep trending softer).

As far as the Fed, this data suggests that the jawboning about inflation will remain just that- while we still expect the Fed to cut before 2007 comes to an end, the odds of a hike anytime soon have just dropped significantly.

http://bigpicture.typepad.com/comments/i...

Given the awful PMI and ISM data- they both broke the key "50" demarcation- one may be wondering how GDP data ended up getting revised upwards. The answer comes from the way GDP is constructed. But even more importantly, observe which components increased the revised GDP- these are symptomatic of a slowing economy:

Revised higher:

• Government spending (0.05%)
• Inventory Build (0.26%)
• Imports (0.39%)



Revised lower:



• Exports were revised 0.2% lower.
• Consumption was revised 0.14% lower

Inventory build, government spending and imports, was responsible for virtually all of the 0.6% upward revision in GDP. Consumption, 70% of the US economy, is slowing.

Why are Businesses inventories increasing? Some pundits have claimed this is a bullish sign, an "anticipation of increased demand." I doubt this, especially in the age of JIT ordering. We have seen recent CEO surveys which point to major negative sentiment amongst the usually cheery Execs; Durable Goods tumbled 8%, and Housing and Autos are likely already in a recession. My guess is that Just-In-Time-inventory is easier to ramp than it is to slow down.

And while Reuters reported that "Business spending on inventories rose, increasing sharply to a $58 billion rate from the $50.7 billion earlier estimated." Inventories builds have increased at a faster than usual pace- implying that this was (whoops!) unintentional.

Given the drop in both Durables and Capex, I am somewhat incredulous over Business spending being revised upward to show a 7.2% gain (versus the original 6.4% gain).

Normxxx    
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The contents of any third-party letters/reports above do not necessarily reflect the opinions or viewpoint of normxxx. They are provided for informational/educational purposes only.

The content of any message or post by normxxx anywhere on this site is not to be construed as constituting market or investment advice. Such is intended for educational purposes only. Individuals should always consult with their own advisors for specific investment advice.

-- posted by Normxxx

» permabear - Cramer says "Back up the Truck!"

In response to Cramer says "Back up the Truck!" posted by Kirk:

Jim was just on CNBC saying this sell-off may be from hedge fund investors who were not happy with crappy performance so they sold...

I just happened to flip on CNBC at the time Cramer was on. The market was near its low at the time. Cramer did his best to pump up the market, and sure enough the market rallied until the close. I don't know how much Cramer had to do with the rebound, but the two coincided.

What I really wrote about was Cramer's ridiculous statement that all the selling in the market in the morning was due to hedge fund shenanigans. The market was up in early trading until the ISM number came out. Same with yesterday's PMI number. As soon as those numbers came out, the market swooned. The fact is weak economic data took the stock market down. If there was any manipulation going on in the stock market, it was folks like Jim Cramer trying to artificially pump up the market on the same old cliches: "soft landing", "mid cycle correction". I've heard those two phrases used ad nauseum for the past couple of months. What they are code for is all the Wall Street types trying to pump the market in a time when the economic numbers are collapsing.

-- posted by permabear

» apharris - Cramer says "Back up the Truck!"

In response to Cramer says "Back up the Truck!" posted by permabear:
"I just happened to flip on CNBC at the time Cramer was on..."

Boy, that's not hard to do, the bald-headed freakish pudge is everywhere. Would much prefere Angelina Jolie, who probably proffers better stock advice, if asked.

-- posted by apharris

» PEIC - RIMM Manipulation

I thought this was illegal?

Miriam Metzinger submits: Recap of Jim Cramer's comments on Wall Street Confidential, Friday December 22. Click on a stock ticker for more analysis:

Hedge Games: Research in Motion (RIMM), Apple (AAPL), Verizon (VZ), AT & T (T), Fannie Mae (FNM)

Cramer said that when he was a hedge fund manager, he would create activity to drive futures lower when he was short on a stock, and when he was long on a stock, he would put $5 million in a few companies to ensure that they would go higher, he told Aaron Task, host of Wall Street Confidential, adding that today one would need $10 million to drive a stock up. Often, hedge fund investors boost futures to raise hopes that will quickly turn sour when sellers come in, Cramer said, adding that it the scheme is not only legal, it is a "very quick way to make money." Cramer recommended that managers whose funds are not performing well make sure that stocks like Research in Motion do poorly for the next six days; "it's really important to knock it down because it's the fulcrum of the market today." Although defeating RIMM would require around $15 million to $20 million, and would be a challenge since it reported a great quarter, it would be a "fabulous" thing to do since struggling hedge fund cannot tolerate RIMM up so high. Another idea is that those who are short Apple, which Cramer calls the "ideal short," should spread rumors that Verizon and AT &T don't like Apple's new phone. He added that those involved in hedge funds should "not do anything remotely truthful, because the truth is so against your view," adding that even Fannie Mae lied about its earnings. Cramer wants investors to understand that the market is influenced by brokerage houses which have a series of orders that can push a stock down, and once rumors are leaked to the press, the "vicious cycle down" begins. On a final note, Cramer comments that the Fed is desperately looking for a reason to cut interest rates.

Is Cramer short RIMM?

-- posted by PEIC