AOL James J. Cramer Chat Transcript

The trader does it again.
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Cramer chatted on America Online, Jan. 25 at 5 p.m. EST.

PF Trader:

Welcome everyone to another exciting, fast-paced markets chat with TheStreet.com's Jim Cramer. Welcome Jim!

TSCNYjjc:

Here we go--and what a great day for a chat--a terrific finish for the bulls!! lets get em going, fire your best ones

PF Trader:

Here we go!

Question:

My man JjC...are you ever in favor of buying and holding through nuclear winter with such standouts as INTC, MSFT, or CSCO???

TSCNYjjc:

You picked three that I have owned for many years. What I like to do is have a core position in names like those and then trade around them.

ZIPO563424:

is now a good time to buy dell

TSCNYjjc:

I have been long them for a very long time. This whole decade in the case of those three.

Question:

last question for Jim..do you regard@home as a gorilla rising in the mist or just another internet conglomeration attempting to root out a place in the sun?...trenchrat

TSCNYjjc:

Hey, Trenchrat!! A familiar TSC name. I think Athome was a great stock. But i read Jim Seymour very closely in our site and he talked me out of holding this thing because of the Excite deal. I sold it Frdiay

Question:

Cramer, will LU break out of this down cycle soon?

TSCNYjjc:

I think that Tellabs, which reported after the close had a great number. that could help LU.

Msbusy1:

(5)is cmgi a good buy

TSCNYjjc:

I bought more LU today. I think it is done going down now.

Question:

jim, why doesn't mob go to the 100$ buyout price... and do you still like seg long-term

TSCNYjjc:

I think Seagate is a much better situation than it used to bea but that pricing is just okay in driveland so I don town it., I am not an arb so I cant speak to Mobil. Sorry.

Question:

jim, name a basket of five net stocks that you think are winners long term regardless of volitility along the way.

TSCNYjjc:

Wow--hard one, but here goes: AOL, CSCO, DELL, YHOO, and MSFT

PF Trader:

Was that MSFT thing a joke?

Question:

Hey Jim, love ya on CNBC.... What is your take on XOOM.COM ? thanks

TSCNYjjc:

No, no, no--I think they are a tugh net competitor already. I think XOOM.COM is too speculative for my tastes.

Question:

jim, do you like 24/7 media as opposed to doubleclick for that space?

TSCNYjjc:

I have worked with Doubleclick and I think they are great guys.

Question:

Mr. Cramer, you cried and whined about Mr. Silverman when CD went to $7, how do u feel about CD now

TSCNYjjc:

I think that CD will probably recover somewhat but you know I am philosophical about things like this. This name burned me, it hurt me terribly. I cannot think objectively about it. So I wont go there.

Question:

jim, do you think amzn will be inline with earnings est. and do you think the stock price will fall like yhoo did after earnings?

TSCNYjjc:

We are at a crucial moment for Amazon. i think revenues will be stronger than the Street expects. But I also think the losses will be bigger.I think people are getting tired of the losses. People want to see some change; some sign that the losses are under control.. If we dont get that sign the stock will go lower.

Question:

cramer, whats your take on usweb/cks? they seem undervalued considering the potential.

TSCNYjjc:

I dont like roll-ups per se and that's what this company has become.

Question:

JJC. Do you feel any of the box makers DELL, CPQ, GTW have any advantage over the others? Own them all or do you have a favorite?

TSCNYjjc:

I think Dell has the best business model out there. I am long Dell and feel great about it. I also like Compaq as a net/p.c. play.

Question:

jim, do you still consider peoplesoft down for the count?

TSCNYjjc:

Yes, I don't want to be there, but it is apparently doing better.

JP2FAS4U:

(5)Cramer whats your opinion toward the online auction houses ie:UBID,EBAY

Question:

What are your 10 largest positions at this time? How do you like Qwest? Great writing at TSC, been a subscriber for 2 years and I love it! Thanks

TSCNYjjc:

I will give you only my large cap names as I dont want to

TSCNYjjc:

I am long a little Lycos, the end of a large position. I will buy it if it comes down as it is the cheapest portal. Amazon I want to wait and see. Right now I am spending more money on Amazon's site than I am in the stock.

Question:

Jim - (full paid TSC member here) - You said you were taking small bites of some net (YHOO) late last week? Any larger bites today?

TSCNYjjc:

No, I compared my bites to ritz crackers. I am not

JOHN00101:

(35)hi jim love you on cnn quick question what do you feel about cendant

TSCNYjjc:

yet ready to make the big submarine/hoagie sandwich

Question:

do you follow Cadence (cdn); if so what about their prospects; what about chip makers?

TSCNYjjc:

I think Cadence is a great company. My friend laura Conigliaro who covers it for Goldman Sachs has nothing but positives to say about it and I defer to her.

Question:

Is the US economy slowing at all in response to international problems?

TSCNYjjc:

Not really. This economy is on fire, just on fire. The manufacturing side is slow, but that's about it.

Question:

ebay. how long will the ride last?

TracyLINY:

(35)Mr. Cramer, What do you think of U. S. Filter for the short and long term?

TSCNYjjc:

This stock has sold off hard and is now ready to move up I think.. Consider how much was thrown at it this weekend and it

JOHN00101:

(35)jim can i get your feelings on cendant

TSCNYjjc:

still rallied. But I am not long it and I won't buy it because i dont

TSCNYjjc:

like the e-tailers as I have said many times in thestreet.com.

Question:

what do you think of network solutions?

TSCNYjjc:

Oh My, this one is like the griddle at the Holland tunnel Dinner, it is way too hot for me. You could fry an egg on its stock symbol!!!!!!!!!!

Question:

what do you think of micron technology?

TSCNYjjc:

I scalped about 20 points here and felt like a genius.

TSCNYjjc:

then I see it go up another 20 points. If this stock comes back down I want to own it because it is kicking everybody's butt in the DRAM category.

JTaylor106:

(35)will court decision affect Bells in long run?

TSCNYjjc:

As with many stocks I guess I was not GREEDY ENOUGH!!

Question:

Jim, are internet funds a good way to play the net?

TSCNYjjc:

I think they are too unseasoned. I would prefer to go long the ones you like and forget about them.

Question:

Do you think the ATHM+XCIT deal is good for ATHM share holders.

TSCNYjjc:

I think it is okay. I liked Excite's site. But I also do not like it when my companies pay up so much for other companies and this was a super-premium bid!!!

Question:

With its new place in the S&P 500, is there a floor under AOL? Is their a ceiling?

TSCNYjjc:

Holy cow, I just got delivered a note from my partner which says that compaq will have an internet announcement tomorrow -- I am long compaq so I am very excited.--anyway, I think AOL could go much much higher

TSCNYjjc:

and as far as a floor---I would not be too concerned.

PF Trader:

A follow up on AMZN

Question:

Amazon must need enormous internet capacity to be profitable. Is it possible that capacity doesn't exist.

TSCNYjjc:

Nah, capacity can be solved by money and right now AMazon has a stock

TracyLINY:

(35)Do you think INTUIT is a good buy?

TSCNYjjc:

which can be monetized quite easily.

Question:

JJC, would you go long or short on Brazil at this point? How about Latin America?

TSCNYjjc:

I think the good old US of A is a great place to invest and I dont need the headache of Brazil or Latin America.

Question:

Jim, what's your favorite tech stock right now?

TSCNYjjc:

Toss up between Cisco and AOL

Question:

Jim, what is your opnion of C?

TSCNYjjc:

I bought C today after feeling more confident after the conference call, but I like the Citicorp side not the Salomon Smith Barney side.

Question:

if msft internet explorer is #3 and they own webtv and are buying cable and have content- how can anyone possible value yahoo at current valuations? msft has been profitable for years -how do you evaluate potential income

TSCNYjjc:

I think Yahoo has an excellent business model and could be far more lucrative than just about anyone on the Net if you believe in the advertising model--which I do wholeheartedly.,

PF Trader:

And can't you just hear MSFT saying "don't expect these kind of numbers next quarter"

TSCNYjjc:

Yeah, that is the classic case of when to buy Soft, which i am long

Question:

Jim what do you think about the Intel stock?

TSCNYjjc:

Intel is still the class player out there. I have a lot of Intel.

Question:

what your opinion on Monsanto?

TSCNYjjc:

I sold my Monsanto today as the buyers were way too aggressive in my opinion. I bought Merck instead

Sein180:

(35)what is your opinion on Kenneth Cole?

TSCNYjjc:

which is down on its luck right now.

Question:

Jim, What's your outlook on Sun Microsystems? thanks

TSCNYjjc:

I love Sun but mistakenly sold it thinking it had moved up too much. I would buy it back on any weakness.

Question:

Cramer, what do you make of the MO rumors?

TSCNYjjc:

I think MO is very unhappy with its stock price and will do something, maybe something dramatic to move it higher.

Question:

When and if the INTERNET bubble bursts (in a greater degree than the correction last week) what affect will that burst have on the fundamentals of the companies?? How much does their stock price affect the businss they attract?

TSCNYjjc:

I think in some cases it depends a great deal because the they need the stock to make acquisitions. But some companies, such as aol and YAHOO, which I am long, are making money and i dont expect that to go away with a stock correction.

Question:

JC, how will today's Supreme Court ruling affect the baby bell's both short term and long term. Do you like BLS at these levels.

TSCNYjjc:

I think these guys are under seige. I am not there. i like WCOM and T much more (and am long WCOM)

Question:

Hi, My question is in regards to CMGI. Many people claim that CMGI is a "safe"bet for an internet play because it invests in internet companies. What is your opinion on CMGI?

TSCNYjjc:

I think Barrons had a very good takeout on cmgi this weekend and I would urge you to read it if you are thinking of buying any.

Question:

Hi Jim, A comparison of the internet industry to RCA of the 20's has been a recurring theme. Do you differentiate emerging internet communication and commerce from radio and television technology...explain. thank-you

TSCNYjjc:

Yes, first of all, I think radio could never be as big as the Internet and television is incredibly boring versus the Net. I think Bob Pittman from AOL, which I am long, has said over and over again that this is the ideal medium for commerce and entertainment.

Question:

Jim, love the street.com! Is it going public?

TSCNYjjc:

I have no comment., sorry.

Question:

How do you explain how any business (ie at home) can pay $6.7billion for a compay (ie excite) that has insignificant sales and historiclosses? What value do you think their buying?

TSCNYjjc:

I think that people go to excite for information. I think people go to excite all day and that there is real value to that for advertisers and for people trying to get their story out. That is why it is worth something. But if you dont believe that you should not be in any of these stocks.

Question:

Jim, how do you feel about the drillers

TSCNYjjc:

This group is from hunger. I still wouldnt touch them.

Question:

Business week had a great article on Broadband and it seemed that they love COMS because of there wireless modems. Do you like the stock at these prices?

TSCNYjjc:

I think COMS has many businesses of which wireless modems is but one of them. I think COMS is cool but I dont own any of it.

Question:

Why has Data Broadcasting fallen so much recently?

TSCNYjjc:

It went up way too high versus CBS Marketwatch (It owns some of it) and also there was massive insider selling.

Question:

HI JIM....Do you have any opinion in IOM?

TSCNYjjc:

I think periodically IOM is a good for a trade but that it ran up too much in anticipation of a great quarter.

Question:

JJC do you have a single best area to be in going out..preferrably an emerging growth area...such as fiber-optic cable...trenchrat

TSCNYjjc:

No, I like anything that facillitates use of the Net

Question:

jim,has pr peaked?

TSCNYjjc:

Dont know those guys, sorry

Question:

Given that everyone is expecting an INTERNET BUST....does that have any affect on reducing the likelyhood that it will happen?

TSCNYjjc:

Yes, probably very much so. I think what will happen, as I have said many times in thestreet.com is that some stocks will be crushed but others will go much much higher

Question:

Do you see the big retail brokers(merril lynch, morgan stanley) getting hit hard by the E-trades Ameritrades etc?

TSCNYjjc:

Yes, i think that is going to be a very tough business for the off-liners.

Question:

Are P/E ratios on tech stocks (old tech and new tech) irrelivent??

TSCNYjjc:

No, But I think that interest rates better stay low or go lower if a ton of money is to be made from these levels

Question:

What are your long term views on WCOM, BMY and XRX?-Nelg

TSCNYjjc:

I think WCOM is going higher. I like Merck more than BMY (and am long it) and while i think Xerox is a fine company, it has too much exposure to Brazil for me.

Question:

What do you think of the stocks Home Depot (HD) and CableVision (CVC)?

TSCNYjjc:

I sure wish I had bought some HD today. I think those guys are doing great. CVC--not my style. I like TWX,

Question:

Please update us on the world of S&Ls & how your opinion has changed during the last six months.

TSCNYjjc:

These stocks still represent great value. But because of r Y2K worries, there has been very little acquisition activity which has cooled them off but good.

Question:

What is the future for E-trade

TSCNYjjc:

I am long E-Trade and think that they do a great job, but I would emphasize that I am long it for a trade.

Question:

any thoughts on infinity broadcasting

TSCNYjjc:

Mel, the guy who runs it, is a money-maker. But I am not there.

Question:

what do you think will happen with the shake up with CNC

TracyLINY:

(35)Mr. Cramer, EMC (data storage ) do you feel it is a good buy at it's current price or (35)you wait for another down turn?

TSCNYjjc:

I lose money every time I trade this one

PF Trader:

Looks like the time has flown by today ... 1 last question

Question:

How about the fiber optics, partucarly Level 3? Any opinion?

TSCNYjjc:

I hear nothing but great things. I am long QWST and MFNX as my fiber optic (the latter is a dark firber play). This is an explosive area, and again, I would URGE you to read Jim Seymour's stuff about it in TheStreet.com

PF Trader:

Jim, thank you very much for joining us for another rapid-fire Q&A! Always fun.

TSCNYjjc:

David, this was a real pleasure. Very exiciting, just like TSCNYjjc: the end of the day. See you all at thestreet.com!!!!!!!!!!!!!!!!!!!!!!

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