Is something happening? The stocks, which have bucked this current downtrend, give a resounding yes. The options market? For Pioneer yes, for Core Labs no.
I know oil has become totally toxic, the anathema of performance, but these two stocks can still do well for you. Of course, I would do them in deep-in-the-money calls and not common. Too much to lose. I might even take some out-of-the-monies. The action is just that odd in them.
Remember, if there is no deal, they are going to get hit, but not hit beyond recognition. And if there is a deal?
To the moon!Random musings: I believe that the Saudis must be pumping like mad. I think that, and not the potential releases from the Strategic Petroleum Reserve, is behind oil's fall. What makes me think that? How about the run in Nordic American Tankers (NAT), the biggest tanker company in the world. It has been a burn-the-house-down stock with a huge yield to boot. Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
Secondaries Are the New IPOs Posted at 12:50 p.m. EDT on Friday, March 30. The heck with IPOs as a way to judge a market. Secondaries tell a much better story. Why would you ever put in for stock in a secondary unless it was deeply in the hole, meaning that it came at a substantial discount to where a stock was trading ahead of the deal? But we got two deals this week that showed the true power of this market: 25 million shares from Dollar General (DG) shareholders, priced at $45.20 and 26 million Dunkin Brands (DNKN) shares at $29.50. Neither stock was sold at much of a discount to the last day's trading. Both stocks immediately went to a premium, meaning that you made money on both deals instantly. That's a sign of true health. More importantly in the case of Dunkin Brands, a whole slew of officers and directors bought stock in huge amounts, not just token-size takes. The shares buys were some of the most aggressive I have seen in some time. While the sellers might have been the private equity guys ringing the register on a phenomenal deal, the buyers were people who aren't going anywhere and can't do any selling for at least six months as per insider trading laws.
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