TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said he has liked these momentum stocks in the past but calls them a "short-term sell" after this "jarring" report.
Turning to Joy Global (JOY), the company reported "terrible" earnings results but the stock is now higher on the day. Anytime a stock goes up on bad earnings, investors have got to look at the report, Cramer insisted.
Those who did read the report would know that the company's guidance suggested that coal is bottoming, and volumes should increase. While this is good news, Cramer is not a buyer of Joy Global.
Cramer said he will be talking with Michael Ward, CEO of CSX Corporation (CSX), on Thursday's Mad Money. What does a train company have to do with coal?
Simple, said Cramer: The shipping company is highly levered to coal and if coal volumes will indeed rise, then shares of CSX -- which have lagged its peers -- are "going to break out to $30," Cramer concluded.
-- Written by Bret Kenwell in Petoskey, Mich.
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