This Day On The Street
Continue to site
ADVERTISEMENT
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

The Grim Fairy Tale; Don't Sweat the Catcalls: Jim Cramer's Best Blogs

The money Bank of America is making when it turns on the lights each day is staggering, and CEO Brian Moynihan has done many things right. It was remarkable. And it wasn't supposed to happen to this DJIA stock, which is why it could rally more than two percent on the day and more than 10% for the year already.

That's amazing, and, of course, it spread to the other banks such as JPMorgan Chase (JPM), which didn't report as good a number as Bank of America yet still managed to rally again in an impressive way.


[Read:
iPhone Kicks Off to Chinese Frenzy]

Or take Intel (INTC). Today we got still one more upgrade, this time from the Bank of Montreal. Why? Because of a belief, now verified several times, that the personal computer market is bottoming. That's also the reason for the endless rallies in Seagate (STX) and Western Digital (WDC), two more supposed road kills and what were supposed to be the layup shorts for 2014. I am astounded at the action in these stocks. My charitable trust owns a position in Intel, and believe me when I say that I am concerned that the stock's moved up too far too fast. But my instincts are to stay along for the ride because it has been ages since Intel has done anything. It's too strong to believe that there isn't something very good going on here.

Must Read: Jim Cramer: I Wish I Could Be More Negative on Bank of America

Or how about the newfound activism in tech stocks? When Elliott, a very smart activist, takes aim not at just one but two ne'er-do-well techs, Riverbed (RVBD) and Juniper (JNPR), it makes you go back over many of the hardware and software companies that have seemingly done nothing for years and years and yet suddenly could be worth a lot more than people think. This group has been so sleepy and immune to activism that it is ripe for a shakeup, hence one of the reasons why the PHLX Semiconductor Index has at last truly broken out here, up 10% for the year already.

I urge you to take a look at Xilinx (XLNX), a charitable trust name that had been stalled for ages because it said there had been a push-out of Chinese telco orders. Guess what: Those orders are now here. No more push-outs. And no more stalling out at the $45-$46 level.

Or how about construction equipment? For many people, including some very clever hedge fund managers, Caterpillar (CAT) was the short of the year. China is falling apart, right? Isn't it? The rest of the world is doing terribly. But here's one thing the no one has been talking about: Business has become quite strong in the U.S. of late, and inventories have actually gone down to more-than-acceptable levels. That's how a stock such as Caterpillar, which was down last year, has started to really get some momentum. I know that minerals are bad, China isn't so hot, and Europe is nothing to write home about. But if Caterpillar has a surge in U.S. orders to refill dealer inventories, this sucker is going a lot higher.

Or how about the oil tanker business? Don't look now, but day rates are soaring, going as high as $100,000 a day -- that's up about $80,000 from the end of the year. Lots of it is that oil that would normally have gone from Venezuela to the U.S. is now going to China, which is a much longer trip and that makes for higher rates. Plus, there are shortages in a bunch of places. Still, though, that's not supposed to happen.

Unlike the other instances that are moving up, Nordic American Tankers (NAT), a stock that I thought had been left for dead, is beginning to look mighty attractive again, particularly because the company's all-in costs are about $10,000 a day. The company is loaded up on ships and is uniquely levered to the day rates. Maybe the stock will at last catch a bid. Stranger things have happened.


[Read:
Intel Still Seeking Next Big Thing]

Finally, there's cable. Universally we were supposed to be moving away from cable, right? The cord cutting, the device hopping, the lack of a need for all of that programming. Yet all you have to do is look at the move in cable giant Comcast (CMCSA), up a buck and change today and at another 52-week high, and consider the potential bidding war for Time Warner Cable (TWC) led by the once-bankrupt Charter (CHTR), and you know that the group's on fire.

Now, there are some negatives that were hard to get your arms around. The declines in mall traffic and consumer spending on apparel at brick-and-mortar stores have taken our breaths away. The shocking decline in the oil stocks, until the last two days, has been pretty gripping. I know I was taking a huge amount of heat for liking the group just two days ago, with catcalling all over the place -- something that, alas, may have marked an important floor in the sector. When the criticism turns hostile over a move, that usually means you are at a positive inflection point.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs