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Digging Into the Dow; Buyable Oil Stocks: Jim Cramer's Best Blogs

Stock quotes in this article: IBM, CAT, T, XOM, CSCO, CRM, TEX, URI, CMI, PANW, CIEN, JNPR, OXY, NBL

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:

  • companies that are way behind in the market and
  • independent oils

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


Digging into the 5 Dow Laggards

Posted at 1:19 p.m. EDT on Friday, Nov. 29

And then there were five.

Just five companies in the Dow that are well behind the market, unable to struggle above double digits for the year. It's a tough benchmark. Many of the stocks in the averages are up huge. It has been a standout year. But IBM (IBM), Caterpillar (CAT), AT&T (T), ExxonMoibil (XOM) and Cisco (CSCO) are all up less than double digits, with IBM down 6%; Caterpillar down 5%; AT&T up 5% and Exxon and Cisco up 8%.

So, I think it is time to drill down at these underperformers and see what needs to be done.

First, IBM is being challenged by the cloud. It's book of business isn't in tune with the simple, inexpensive nature of the cloud and the whole Watson thing, the race for most powerful, analytic computer, means nothing in this day and age where there are many companies that provide excellent data analytics.

IBM offers the fabled one-stop shop and information technology outfits are increasingly going a la carte, which I saw at DreamForce, the Salesforce.com (CRM) celebration of everything that is not IBM. Increasingly, IBM is perceived as being irrelevant and not offering a bargain to companies. Heavy hardware is unnecessary. IBM spends much of its free cash flow buying back stock to make the earnings with subpar or no revenue growth. It is a giant cyclical company without any growth.

I have to tell you that if Warren Buffett weren't in this stock it might be lower -- dramatically lower. Its revenues have been, basically, flat for four years while all that has happened in that time is it has shrunken its share count to about 1.098 billion from about 1.278 billion in that same period. No real growth. I just see little reason to own the stock without a game-changing acquisition. It is a tech company with no mobile, social or cloud business to speak of and the more it goes into the cloud the worse it will be for the company's margins.

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