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:
- How Friday's market made no sense
- How the time is right for some tech comeback kings
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
Cramer: If You Can Make Sense of Friday's Market, Let Me Know
Posted on Dec. 9 at 2:52 p.m. EDT
No rhyme or reason Friday.
We've got the consumer packaged-goods companies rallying even as they have to be hurt by what is now the perennially weak dollar. We have scattered tech going higher, no doubt off the great numbers from Broadcom(AVGO) - Get Report and Finisar(FNSR) - Get Report . I think the market's made a judgment that Broadcom's management can't be as bullish as they were last night if premier customer Apple(AAPL) - Get Report wasn't ordering a ton of stuff. Alphabet's(GOOGL) - Get Report putting points on. But Nvidia(NVDA) - Get Report is shedding them, as is Lam(LRCX) - Get Report .
There's bizarre action in retail. Walgreens(WBA) - Get Report , which has been a not-so-hot retailer this year, finally caught a bid. But Macy's(M) - Get Report , Nordstrom(JWN) - Get Report , Kohl's(KSS) - Get Report ? All bad. Same with Walmart(WMT) - Get Report . (Kohl's is part of TheStreet's Dividend Stock Advisor portfolio.)
Drug stocks are actually OK: Allergan(AGN) - Get Report , Bristol(BMY) - Get Report , Pfizer(PFE) - Get Report all playing catch-up. (Apple, Alphabet, Walgreens and Allergan are part of TheStreet's Action Alerts PLUS portfolio.)
And the oils cool off even as crude ticks up.
If you can make sense of it, let me know. To me, it's the most random day of the week, made up principally of profit-taking and a belief that perhaps the worst is over for the drug stocks. I have to tell you that, to me, the drug companies simply aren't the clear issue.
They are too easy to call and too easy to bash and pharma's hated more than big oil for many.
Now there's a statement for you.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, GOOGL, WBA and AGN.
Cramer: Why Does No One Care About Banca Monte Paschi?
Posted on Dec. 9 at 11:04 a.m. EDT
Twenty years before Christopher Columbus sailed the ocean blue, the oldest surviving bank in the world, Banca Monte Dei Paschi (BMPS), was founded in the Italian city-state of Siena. If you ever go to Siena, it's one of the standouts on the tour of one of the great towns in the world, with a headquarters befitting its more than 500-year-old history.
But Monte Paschi, as people call it, is now broke.
We may discover this weekend that it has to be bailed out, as there seems to be no plan right now to save it in its current form.
When a bank goes bust in Italy, everyone connected with it gets hurt. Common Stock holders get totally wiped out, subordinated debtors can be, too. Finally, depositors can take a hit as there is insurance to €100,000, but after that you are on your own.
This is not a small bank. It has $48 billion in public debt that could take a monstrous hit. This one could force Italy to take action: Can they really let the oldest bank in the world fail? Italy has the third-largest bond market in the world. This is the third-largest bank in Italy. I just don't think there is enough money in the till to get something done without a huge amount of pain in anything even remotely involved with this bank.
And yet no one seems to care.
There was a time when this was all we would be talking about. It would be the focal point of everything--other than the strong dollar hurting earnings, and the spike in interest rates.
In that sense, though, it is just one of three things that no one seems to care about.
Now, I would like to be as glib as the world in not caring, but I only really care about these kinds of events when they are unknown.
This one's known.
Still, it's a rather remarkable moment that it means so little to people.
Let's see what happens over the weekend. Right now though, stay tuned.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
Cramer: The Time Is Right for These Tech Comeback Kings
Posted on Dec. 9 at 7:13 a.m. EDT
Tech Old-Timers Day?
I am not sure how to characterize what is working in tech because it is a little bit of the old and some of the not-so-old, but it sure isn't the cloud and it definitely isn't the Internet.
I am talking about that blowout quarter last night from once-darling fiber-optic king Finisar(FNSR) - Get Report , on top of that beauty of a number from Ciena(CIEN) - Get Report Thursday morning. These haven't had a pulse in years. Or at least a steady one. Or the steady drumbeat higher of Juniper(JNPR) - Get Report . They all matter, because they are ultimately about all of the higher use of bandwidth to send all sorts of complicated video programs to your cellphone, which is an area that has limitless demand.
These are remarkable moves, ones that were hoped for about 15 years ago when optical equipment was all the rage. Subsequently, these stocks got crushed, as the technology ran ahead of both the demand and the quality of the device.
That's no longer the case--as we saw with the amazing Broadcom(AVGO) - Get Report conference call, where this one-time simple supplier to cellphones is now a major provider of communications equipment to pretty much everyone. While it wasn't explicitly talked about on the conference call last night, Broadcom has the best next-generation technology for 5G--and it looks like the future for that technology is now.
These companies all took off after PC-related companies started peaking. They were the replacement techs, and they had amazing runs before they crashed and burned. Remember, even Broadcom, the best of the lot, had to surrender to Avago given its low valuation.
Then, speaking of throwbacks, there's the endless renaissance of Advanced Micro Devices (AMD) - Get Report and Micron(MU) - Get Report , as well as Western Digital(WDC) - Get Report , three companies I extolled at my Deal Economy speech a week ago. Just red hot.
They are total throwbacks. I bet we could get old signed jerseys from those guys. A lack of new equipment, a tightening of demand, and a user base that includes machine learning and artificial intelligence all play a part in the renaissance--as does, in the case of AMD, gaming chips, where they are second only to Nvidia(NVDA) - Get Report in that hypergrowth market.
Now of course Broadcom was amazing last night--not that we would expect anything less from the brilliant and unheralded Hock Tan, the CEO who put this monster-good company together. And that's moving Skyworks Solutions ( (SWKS) - Get Report ) , too. You have to wonder if it can do the same thing to Apple ( (AAPL) - Get Report ) as a read through, but nothing's really been able to budge that behemoth.
But this is an old-school rally, and it is mighty hard to get your arms around. It's got nothing to do with Trump. It has nothing to do with visible telco spending. It mostly has to do with being the last man standing.
These are all last men standing.
Maybe that's enough?
Funny, the only non-participant of the old telco winners is Cisco Systems(CSCO) - Get Report , which has none of the pizazz of the winners. But it does have $60 billion offshore. (CSCO and AAPL are holdings of Action Alerts PLUS.)
Who knows what it can do with that money? Hence, why it remains a buy and is owned by Action Alerts PLUS, with the idea that it can buy its way back into the race while ridding itself of old business with little-to-no payoff.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CSCO and AAPL.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, GOOGL, WBA, AGN and CSCO.