The Celebrity Investor

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

JBL: Big Dreams and Bigger Dollars

01/14/06 - 09:15 AM EST

John  Layfield

On a very grass-roots level of due diligence I called my sister, Sylvia Sims, who teaches school in Sweetwater, Texas. She told me the service provided by Educate is invaluable to the education system.

This is a boring company. There's nothing fantastic about its numbers; it just continues to grow. I think it is a company you should buy. I do not currently own shares of Educate, but as a guy who speaks and understands Presidential English, I would enjoy owning an education play.

News, News and More News

The State of Maryland just made one of the worst decisions for big business possible. It voted to override the veto of Gov. Robert Ehrlich Jr. on the so-called Wal-Mart (WMT - Cramer's Take - Stockpickr) Bill. The bill states that companies with more than 10,000 employees have to pay 8% of payroll toward health care.

This bill is flawed on so many levels, but on the one that affects investors is that it hurts business. I recommended Wal-Mart in mid-October; but, with this ruling and lower-than-expected Christmas sales, the stock is now basically the same price as when I recommended it. I still own my shares of Wal-Mart, and I am not selling them. However, I would not be a buyer here until we see how this plays out nationally. So far it is great news for unions, bad news for business.

Everybody Wants a Bad Company

I also recommended Boston Scientific (BSX - Cramer's Take - Stockpickr) in October, and it is now up just slightly due to concerns over a potential bidding war with Johnson & Johnson (JNJ - Cramer's Take - Stockpickr) for Guidant (GDT - Cramer's Take - Stockpickr).

J&J first made a bid of $76 per share for Guidant, and then lowered it after a series of recalls of pacemakers and defibrillators. J&J lowered its bid to $63. Boston Scientific jumped in and the bidding has begun for a troubled company. The bids now stand at $73 a share by Boston Scientific and $68 a share by J&J.

Boston Scientific and J&J both want a stake in the $10 billion market for devices that help keep heart beats normal.

I like Boston Scientific with or without the acquisition. I own shares of the company and plan on keeping them.

At the time of publication Layfield was long Wal-Mart and Boston Scientific although holdings can change at any time. A former All-American offensive lineman at Abilene Christian University, John Layfield played professional football for the then-Los Angeles Raiders and later in the World League. After wrestling in Japan, Mexico and Europe, Layfield arrived in the WWE in the mid-1990's. A former WWE champion, JBL was a featured wrester at WrestleMania 21 and can also be seen on Friday Night SmackDown! on UPN. Outside of the ring, JBL is a self-taught investor who was recruited to write a personal finance book, Have More Money Now, which was released in the summer of 2003. He has appeared on finance shows on CNN and Fox News Network. He is co-chairman of the Smackdown Your Vote! Campaign and he has joined both the USO and Armed Forces Entertainment (AFE) for tours through Iraq, Afghanistan and other Middle East countries. He regularly visits the Walter Reed Army Medical Center and the Bethesda naval hospital to meet with wounded troops.

Previous Story

Dykstra: Going Deep

The Celebrity Investor


01/10/06
Dykstra: Going Deep

A primer on using deep-in-the-money calls, and why to buy Wal-Mart options.


01/07/06
JBL: The Last Drop

The water shortage is big business. Pentair is the best pure play, while Insituform Technologies is well positioned.


01/04/06
JBL: Fearless Forecasts

Prognosticating isn't so hard. The case for equities, Altria, Tsakos and the Longhorns.



08/05/08
Three Internet Stocks That Could Double

These forgotten Internet stocks are being accumulated by hedge funds.


08/15/08
The Five Dumbest Things on Wall Street

Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...


08/15/08
McCain Fund-Raising Picks Up

The GOP presidential candidate raised $27 million in July.


08/15/08
Cash-Back Cards Aren't Money in the Bank

Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now. See All

  • Cramer's Daily Booyah!
  • Before the Bell

Premium Stock Ideas