Monday and late yesterday, Jim Cramer responded to a new batch of questions posed by members of the Stockpickr community.
Anybody can ask, respond or comment at Stockpickr Answers; the top responders get ranked in our "Top Analysts" section.
Here are a few of the questions to which Cramer recently has responded:
- UnitedHealth Group (UNH) - Get Report is planning to buy $4.5 billion of its shares back. Although this sounds like a lot, UNH has a $70 billion market cap and $4.5 billion is just not enough. It has $6 billion in net cash, and I think in light of the mega-buybacks of Home Depot (HD) - Get Report, Wal-Mart (WMT) - Get Report and IBM (IBM) - Get Report, UNH should buy back at least $7 billion worth of its stock, roughly 10%.
- I was wondering if you could help me with a situation that seems to happen every once in a while. I recently started a position in Google (GOOG) - Get Report with the intent on making four equal-size purchases. My first was made at $507. Since then, the stock has moved up each day to $543. Part of me says that I should buy more now because my reason for starting the position was based on the stock being underpriced by the market until it hits $750ish. Obviously, the other part of me wonders if I should wait for a pullback, until earnings come out or an overall market correction.
What do you recommend for this type of situation?
- What should I do with my Tyco (TYC) shares and spinoffs? I was considering selling the TYC and keeping the Covidien (COV) and Tyco Electronics (TEL) - Get Report.
What do you think?
- Allegheny Technologies (ATI) - Get Report is 9.5% off its 52-week high.
Is this stock ready to make a move?
- Do you think that the iPhone is living up to the hype and that it's time to buy Apple (AAPL) - Get Report, or is the upside already reflected in the stock?
- I know Jim is not bullish on Big Pharma currently, but as a trading idea, GlaxoSmithKline (GSK) - Get Report and Amgen (AMGN) - Get Report (having plateaued at $51-$52 and $54-$55, respectively) seem to offer good risk/reward.
- I saw your answer on finding growth and thus
price to earnings to growth, or PEG. From another newbie: How would you apply this to
Research In Motion (RIMM) ? The growth projections vary a great deal between the various market evaluators. I find this PEG harder to calculate than at first described.
Earnings for 2007 or 2008 or 2009 and what earnings projections do you most trust?
(Editor's note: Cramer owns UnitedHealth Group for his Action Alerts PLUS charitable trust.)
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