When Time Warner (TWX - commentary - Cramer's Take) reports, and if it goes down, you are going to hear all sorts of nonsense about how it wasn't as strong a quarter as people thought. That nonsense will be Wrong!.
This is a stock that simply has broken out, just galloped out of a very tight range, and there will be people who want to take profits no matter what. I think they will overwhelm all of those who don't want to and you will get a coloration that will cause people to be fooled into selling.
This panic-out will be a shame. Because, like Verizon (VZ - commentary - Cramer's Take) before it, Time Warner is a stock with a move that precedes its turn, but the turn is very much ongoing. You can't jump ship when the companies finally get it right and their stocks start moving up. You can't decide, "Oops, this is it, the stock is headed down, I want out." Ask yourself, with Time Warner or Verizon finally getting it right, whether it in sacrificing sacred cows, as Time Warner is with the sales of some magazine titles, or making a huge bet on wireless, as Verizon did, when it initially pays off you don't leave.
What I always suggest in these big runs is selling a little ahead of the big run and then buying those shares back when the fair-weather friends jump off. But don't be confused; Time Warner's Dick Parsons has begun the long-awaited turn, and it is going to be one that may be with us for quarters, if not years. Steel yourself for what the critics will make up when the stock gets hit by profit-takers. Because that's all there will be.
Random musings:Vonage (VG - commentary - Cramer's Take) tried that lower loss than expected, but even it can't hide the fact that the triple play from Comcast (CMCSA - commentary - Cramer's Take) is a Vonage killer. ... Congratulations to the U.S. Attorney of the State of New Jersey for getting conspiracy and false-reporting convictions against Walter Forbes, late of Cendant (CD - commentary - Cramer's Take), in federal court in Connecticut this afternoon. Three cheers for democracy!
At the time of publication, Cramer had no positions in any of the stocks mentioned.
Jim Cramer Blog Newspaper Figures Will Just Get Scarier 10/31/2006 9:12 AM EST Crushing costs mean the answer isn't private investors but a new model, online.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.
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