We're finally seeing the liquidations. Finally. We saw Aubrey McClendon get margined out of almost all of his Chesapeake (CHK - commentary - Cramer's Take), which is an incredible thing to behold because he bought and bought and bought and he did it with borrowed money. Unbelievable. We saw Sumner Redstone margined out of some CBS (CBS - commentary - Cramer's Take) and Viacom (VIA - commentary - Cramer's Take) -- can you believe where that CBS has gone? And we heard from Doug Kass about a couple of liquidations that I believe will clear up the infrastructure situation, as the hedge funds I hear that are out are in that cohort.
You can see how things are going to start shaking out. We know there's earnings risk in all of these areas. But we also know that some of the companies in these areas have fundamental worth that has been obliterated by the selling.
What does all of this say? It says that we are beginning to get bargains -- EVEN if the financials stay awful.
Of course, it is not a reason to be bullish, because I believe in EVERY CASE the companies being affected by selling have earnings estimates that are coming down. But I cannot hate stocks as much, knowing that many have been brought down, as I did before this moment.
Jim Cramer Blog Nice Save, Bulls! 10/10/2008 3:37 PM EDT Great coordinated effort to put the brakes on the selling.
Jim Cramer Blog That Ramp Up 250 Was a Thing of Beauty 10/10/2008 4:23 PM EDT Once they took it up that much, there wasn't enough time to knock it back down.
Jim Cramer Blog The Storm Before the Storm 10/10/2008 3:18 PM EDT We're not getting any calm here, just more forced selling ahead of the weekend.
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