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

Stock quotes in this article: FDX, CAT, DE, ORCL

Now, you may think that is impossible -- but that, again, has been the pattern with Caterpillar. Like FedEx before it, people can't stay away from this high-quality company because, alas, it is high-quality, and best-of-breed always attracts buyers. Sorry -- it will be bought, not sold here, because it has already been humbled.

Caterpillar has now declined about 3% vs. the market's plus 9% gain. Because of that, no one of any significance will downgrade it after this hammering.

Deere? Here's the premier farm-equipment stock that has been hit with multiple downgrades because of a slide in the price of corn. It now sells at 10x earnings. After the decline, it's barely up for the year.

So now the potential sellers are thinking it's down enough already. The buyers are thinking, What happens to this coiled spring if corn goes up? It will be bought because of that potential upside.

Oracle, finally, is a little like FedEx. It had run into the quarter and came into Wednesday's session up 7% for the year. But this high-quality company will be selling at 11x next year's earnings by the end of the day, with lots of cash -- $33.4 billion -- as well as a huge buyback that included the repurchase of 61 million shares, with $10 billion bought in the last year. It also has a new product cycle that starts this quarter. The expectations had been ratcheted down, and people are going to give Ellison, Hurd and Safra the benefit of the doubt here. A couple of downgrades today, a few more tomorrow and that's about it. Again, invoking the two-day-decline rule of FedEx, it should probably be bought Monday.

Now, I know all of this seems pie in the sky. These are four companies that really blew it. If there were any intellectual honesty to it, these companies would go down and then stay down, if not continue to drift even lower, given the circumstances.

But -- and this is the real but -- that's not been what the market's been doing to damaged stocks. There's been a tremendous benefit of the doubt being given to higher-quality companies that have been put on sale, as FedEx showed from the Lazarus-like run from the September-to-October debacle.

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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs