This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

A No-Justice Market

The preponderance of evidence says that when they're put on sale, you have to buy them.

That's what comes to mind when I think of FedEx (FDX), Caterpillar (CAT), Deere (DE) and Oracle (ORCL), all of which have been hammered terribly in the last 24 hours.

Now, the evidence behind the selloff does not indicate it is a wise decision to buy. FedEx blew it again. It has an expensive route system, one that can't be supported by the high-end fast delivery of packages -- at least right now.

Caterpillar blew it again. It makes gigantic engines and equipment that can't be supported by commercial real estate, trucking, oil drilling or infrastructure spend -- at least right now.

Deere blew it again. Turns out that, without rising prices in corn, the company can't sell enough equipment -- at least right now.

Oracle blew it again. It had a difficult hardware transition; it added 4,000 new salespeople and didn't get much out of them, and it didn't have luck closing a lot of big deals -- at least right now.

So aren't all of these sales?

Yes, but they have already been put on sale by a market that instantly over-punishes but does not instantly over-reward. That's the issue that confronts bargain hunters at this very moment.

This article originally appeared on March 21, 2013, on RealMoney. To read more content like this + see inside Jim Cramer's $3 Million portfolio for FREE Click Here NOW.

Let me walk you through my thinking.

First, FedEx. We don't know if this company's problems are cyclical or secular. It looks as though FedEx is offering a very expensive product that people don't really need right now -- the fast-shipping option. But if things get better globally, won't people pay up for the service as they used to do?  I think they will. In the meantime, they are taking down costs and bringing in new planes to make service cheaper. How do you know it won't click?

More important, think back to what happened with FedEx back in September and October of last year. The company first guided down then, citing pretty much the exact same problems that hurt it Wednesday. That's right, the exact same problems. That news sent the stock from the low $90s down to the mid-$80s in a similar bloodbath to Wednesday's percentage decline.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,104.03 +52.30 0.31%
S&P 500 1,982.56 +8.93 0.45%
NASDAQ 4,451.4230 +26.7190 0.60%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs