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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV