This column was originally published on RealMoney on June 21 at 10:34 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Let's talk cheap. Right now there are so many high-value-added companies, companies that are doing everything right, that you have to wonder why you should have to trade down to lesser companies.
For example, take
Johnson & Johnson
. Here's a company with one of the most established franchises in the business. It has a fantastic medical device business with great margins. That business doesn't have the pressure of the Food and Drug Administration. It is global in nature. Plus it hasn't messed up at all, certainly not enough to deserve a 16 price-to-earnings ratio. Frankly, just writing that it has a 16 P/E is odd; I have never seen it like this.
Or how about
? Sure, it's a dog right now, but can we just remember that one day Vista will ship, and that will be a gigantic cycle? In the meantime, you aren't going to get hurt by a 12% grower with a great balance sheet and a 17 multiple.
Or how about
? It trades for twice its book value, is still a premier franchise and has good earnings power. And don't forget that
trade at simply absurd multiples, given their consistent businesses.
And how many companies are growing at double digits that sell for 16 times earnings? Look at
, a stock I have been buying for
Action Alerts PLUS. This one's down for no reason at all, just off horribly, and it is probably going to report still one more upside surprise, 11% growth -- and it will be 16 times earnings once again.
I want to kept this cheapness in sight because you simply cannot avoid a market this cheap. The downside has been crushed by this selloff. Things are cheaper than they have been in ages. It just seems so wrong to me.
At the time of publication, Cramer was long Microsoft and Textron.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.