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.

Selloff Reaction; Valuing Beloved Companies: Cramer's Best Blogs

NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

  • the new market pattern; and
  • two hard-to-value stocks.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.


The New Market Pattern

Posted at 4:10 p.m. EDT on Friday, May 17

New pattern: A selloff brings out buyers.

One of the most unnerving traits of the old bad days was that when you had a reversal day where the market opened higher and then plummeted, it tended to usher in a real bone crusher.

I thought that would be the case today, especially after Nordstrom (JWN) reported its dog quarter, and J.C. Penney (JCP) and Dell (DELL) failed to impress, either.

Instead, buyers came out of the woodwork in pretty darned shocking fashion. They went back to disappointers like IBM (IBM) and 3M (MMM), so-called disappointers like United Tech (UTX).

What changed?


I think auto registrations in Europe plus good consumer sentiment made this rally.

We are in some sort of super-positive moment that we didn't get crushed today and the key remains that Europe has, in the words of John Chambers of Cisco (CSCO), bottomed out.

This is a bottomed-out-in-Europe rally, and as long as we keep getting good data points out of Europe, we are going to have this kind of day. Who knows what will happen if we actually get good numbers out of China? Where will Vale (VALE) and Freeport-McMoRan (FCX) and the other cellar-dwellers like Joy Global (JOY) go?

Or maybe it is just a matter of time.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long JOY, UTX, VALE.


Tesla and Amazon Drive the Shorts Crazy

Posted at 11:10 a.m. EDT on Thursday, May 16

Hard-to-value stocks are such bummers. How do you value a car company that makes only 21,000 cars, even as it makes money on them? How do you value an online company that dominates Internet commerce?

The answer is simple: You don't. You can't. You can't, because there's a confluence, an actual formula, for what's going on here. You take a service or product that is much loved, you verify constantly that it is loved, whether it be because of the rapid adoption of the online service or a terrific rating in Consumer Reports, and you add in sudden profitability and a chance for long-term dominance and then sprinkle on nonbelievers who short the stock because the usual valuation works are defied, and they can't be defied forever. The result? You get Tesla Motors (TSLA) at $10 billion, and you get Amazon (AMZN) at 220x earnings.


Now, the mechanics of the stock market are working in favor of these two stocks -- the mechanics meaning the difficulty of the short-selling process. You can't just sell stock when you short; you have to borrow stock to sell it, and that has been very difficult in the case of Tesla, where 41% of the stock is sold short. Anyone who buys this stock is the enemy of the shorts, because the shorts are going to demand that stock. The shorts are frantic to find stock, and when they can't, the brokers just buy the stock in to cover the short.

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 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs