
Cramer Answers on Stockpickr
Jim Cramer responds to questions on Goldman Sachs, Yahoo! and the best business schools.
On
Thursday and late Wednesday, Jim Cramer responded to a new batch of questions posed by community members. Anybody can ask, respond or comment at Stockpickr Answers and the top responders get ranked in our "Top Analysts" section.
Here are a few of the questions Jim responded to:
- News Corp. (NWS) - Get Report has reportedly offered to swap MySpace for a 25% stake in Yahoo! (YHOO) . Is News Corp. taking advantage of Yahoo!'s need to merge/acquire to get a huge gain on MySpace? Do you believe similar offers are being made to Google (GOOG) - Get Report or Microsoft (MSFT) - Get Report?
- I own a lot of Unitedhealth Group (UNH) - Get Report. I got in at $49, it looked like I was going to make a big gain, but now it's stuck in the mud. I thought I was getting the best of breed without its normal premium to the group because of the options scandal. I'm gonna stick with it for the rest of the year, but I would like your opinion on it, please. What the heck is going on? Any bad news about Congressional meddling should have been priced into the stock long before now, shouldn't it?
- Twenty percent of my portfolio is in Goldman Sachs (GS) - Get Report. I'm considering selling half of my holdings in Goldman and putting the proceeds into NYMEX Holdings (NMX) . Because this pair of exchange stocks would still add up to only 20% of my portfolio, would this break Cramer's diversification rule?
- I currently have $2,500 in Bank of America (BAC) - Get Report because I like its 4.5% yield. Do you think I would be better off selling Bank of America and moving intoCitigroup (C) - Get Report?
- Even though Boeing (BA) - Get Report is doing really well here, it wasn't long ago that Airbus sold more planes than it did annually. If one believed that Airbus was going to have a resurgence next year, are there any derivative plays of companies with significant exposure to both (for example, a common supplier of parts)?
- There have been some buyout rumors circling BEA Systems (BEAS) lately. Well, there have been tons of these for a while. Would any company actually acquire another (in this case BEA Systems) with the current option/accounting auditing?
- I will be getting my MBA with a goal of getting into hedge funds. Which school would you recommend? Harvard with its great name? Or Cornell with its student-managed hedge fund?
- Back in January you spoke of MRV Communications (MRVC) and one of its divisions, Luminent, which was a possible spinoff candidate. I did the research and it seemed a good possibility. I picked up a small position and have held it since. In March, several large funds picked up a position in the stock, but outside of that there isn't much happening. Luminent continues to come out with new products and I would think that a spinoff in a good market would be better than in a bad market. How long should one hold a spinoff candidate?
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