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:
- Emerge Energy Services and its trajectory, and
- What's propping up retail.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
The Hottest Stock I Follow
Posted at 4:15 p.m. EST on Friday, Aug. 29, 2014
You may not know Emerge Energy Services (EMES) , a company I have had on "Mad Money" a couple of times. But the trajectory of this one speaks loudly about these last few days.
It's the largest frack sand company and the company is doing everything it can to ship as much sand as possible around the country to meet fracking needs. It's big bottleneck? It needs to double the number of railcars it has to get the sand to where it has to be. Emerge has the hottest stock of any I follow, including Tesla (TSLA) and Netflix (NFLX) . It has the greatest demand of any company I know and it shows no sign of letting up because it is a superior replacement for ceramic proppant, which is now costing too much if you want to drill and drill fast.
And who wants to drill and drill fast? How about WPX Energy (WPX) ? How aboutCimarex Energy (XEC) ? How about Anadarko (APC) , Continental (CLR) , Noble (NBL) , Apache (APA) , Marathon (MPC) , Carrizo (CRZO) , Range (RRC) , Cabot (COG) andPioneer (PES) ? These companies and dozens like them are all going full out and can't get the oil out fast enough. There had been fear that this quarter would have the production growth, but not the product price. There is also fear that there isn't enough space to put the stuff. But I think that the good ones have the pipe and will get it to the market.
This group will become the go-to as we see the end game: Ukraine wants to be in NATO and Russia simply can't let that happen.
The group goes higher. You have to hope for a couple of down days to get in and, at the pace that Ukraine-Russia is escalating, you just might not get a chance.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.
Best Buy and Macy's Say It All
Posted at 2:21 p.m. EST on Wednesday, Aug. 27, 2014
Best Buy (BBY - Get Report) and Macy's (M - Get Report) say it all. Both missed. Both guided down. Both were pretty shocking, Macy's because it has been amazingly consistent and Best Buy because, honestly, the commentary could not have been more negative.
Macy's got hammered and it turned out to be a fabulous buying opportunity. Why? Try as I have, I don't know. Maybe it is just a belief that things are getting better. Maybe because people believe that the lower gasoline goes, the better Macy's does. Perhaps it was an aberration? Maybe they saw how J.C. Penney (JCP) came back but not so much that it made a difference? Maybe it was a recognition that there has been less price-cutting in the group? We don't even know. No one has the answer -- but I have heard a lot of conjecture.
The simple fact is that there is a huge bid under retail and Macy's is retail.
Best Buy was far worse than Macy's was. The commentary was simply awful. When I read it, I said to myself, "They are telling you to sell this stock because they are going to get their heads beaten in by Amazon (AMZN) ."
But, like Macy's, it didn't matter. Now the stock is going higher. You can say, "Well, wait, like Macy's, we didn't get any real downgrades." Still, though, it's working, and that's what matters.
So what is up with all of this? OK, here's what I see is happening. If you look at the good performers in the group -- TJX (TJX) , Ross Stores (ROST) and Urban Outfitters (URBN) -- and you notice that Target (TGT) didn't go down on that horrendous quarter, you have to conclude two things:
- The back to school season is going much better than you think, and
- People are betting that the holiday season is going to be very strong.
In Best Buy's case, it is betting that the holiday season is going to be better because of gaming, new cellphones and new GoPro (GPRO) devices, all of which are in the Best Buy sweet spot.
Like the other day, when I opined that you didn't have to worry about the bank stocks' rally because they don't report for a long time, you can speculate that holiday season can take these retailers far -- provided that you don't get any real bad back-to-school commentary. I think you have to believe that you would have already if that were the case.
Hence, why the move has legs. Hence, why you have to buy stocks of companies that didn't report good numbers, betting that the future is brighter. I get it. I wish it weren't like that, but I get it and I think that's the real reason why the SPDR S&P Retail ETF (XRT) seems to have a bid underneath it, no matter what's said or done.
- The suspicious buying in Kellogg (K) is so persistent, who doesn't' want to go long it?
- The selling in SunTrust (STI) is ridiculous, but it keeps happening.
- I think the fact that SeaDrill (SDRL) isn't down badly on that terrible number means two things: one, some analysts will still downgrade it tomorrow but, two, because they are not buying more ships, we are putting in a bottom.
- I hear Doug Kass on social-media stocks. They will be doggie as long as there is a threat of monster IPOs ahead.
- But I also know the earnings-per-share power of Facebook (FB) , Google (GOOGL) and even Twitter (TWTR) beckons and I wouldn't sell Yelp (YELP) no matter what.
- GoPro and Mobileye (MBLY) are the two new specs that are loved and will stay that way for a long time.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long FB and GOOGL.