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Jim Cramer's Stop Trading: GOOG GILD

NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, warned investors about the potential for momentum stocks to stall out at current levels -- despite expectations for the group to rally after the recent selloff. 

As an example, he pointed out that Bernstein reiterated its $1,500 price target on Google (GOOG), an AAP holding. The stock is "radically undervalued" and should have a rising valuation due to all of its different business segments, Cramer summarized from the analyst's research.

Normally, the stock would be up $10 to $15 on a report like this, he added. Instead, shares are lower in Wednesday's session. Perhaps the bounce in momentum stocks on Tuesday was only a short-term thing. Maybe the rally "doesn't have staying power," he pondered. 

Cramer expressed concern over other names such as Gilead Sciences (GILD - Get Report), saying the stock may not hold up in the rally. 

He concluded that the market "likes old-fashioned growth."

-- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had a position in GOOG.

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GOOG $552.02 -0.60%
GILD $102.39 -0.53%
AAPL $130.87 -1.30%
FB $81.18 -0.90%
TSLA $233.56 0.87%


DOW 18,020.25 -17.72 -0.10%
S&P 500 2,105.03 -3.89 -0.18%
NASDAQ 5,042.1130 -18.1330 -0.36%

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