(Ed.'s note: The following is the transcript of a James Cramer chat held on Yahoo! the evening of Nov. 25. Sit back and enjoy.)
: I am ready for anything i am ready for hard questions....hit me with your best shots...my fingers have never been this ready--clocked at 180wpm earlier today...I am in the paddock, itching to get to the starting post
: Let's all welcome James Cramer, founder and contributing editor of
and a hedge fund manager on Wall Street. He's here to answer your questions about this week's wild ride in the market. Send in your questions now.
asks: why did you buy 25% of ACCCB? do you love the company that much?
: yeah, I am making a bet on Ron Howard who is a terrific guy and manager
asks: A stock goes up like a rocket and then, for several weeks there is no news but the stock inexplicably, slowly deteriorates. What explains no-news deteriroation? It's happening, for instance, to VGINF lately but I've seen it in other cases also.
: Probably the managers who brought it up are liquidating
asks: Could SUNW be the next juggernaut and do they have to beat out MSFT to gain market share?
: I am long sunw and like it very much but it is no Mister Softee
asks: Jimmy, How does gold behave in a dis-inflationary cycle. You can t eat it or use it for heat???
: gold does nothing but go down in inflationary or deflationary environs
asks: for cramer...you think internet trading is so great but you don't do it!!!why and how much do you pay per share in commissions and take a ballpark guess on what you pay in commissions per year???
: I pay a huge amount of commissions a year. I trade big blocks, cant use internet, but would
asks: What was your most profitable trade ever ?
: The Intel October 80 calls last year ; bought for 5/8th sold for 40!!!
asks: I have puked up half of my oil service mutual fund - do i wait for another virus to get the other half or hope that i have recovered?
: Man, get some Pepto Bismol and step back up to the plate
asks: Is it possible Fed may lower rates in first half of 1998?
: sure--but probably keeps them intact
asks: Do you think that the Vanguard Index 500 is a good investment for more than fifteen years?
: I love that fund. The best index fund. Good for someone who can't pick stocks
asks: Which sector fund (health or financial) holds more promise?
: financial and health are both great but prefer the former
asks: What would you advise regarding offshore investing and banking?
: forget it. I like paying U.S. taxes because I like this country
asks: Jim, Liquidity of market not as robust as it use to be, any thoughts? Adding Liquidity Trim Taabs to
: Lots of liquidity. just stay away from little tiny stocks and bad foreign markets
asks: Where are the disk drive makers headed?
asks: Jim, Which currently active mutual fund manager do you respect the most?
: Foster Friess
asks: I know you're a Rousseau fan. Nietsche called him "a moral fanatic." How 'bout recommending a market philosopher for equity traders (not to be confused with buy and hold Buffetologists and Lynchians)?
: How about Livingstone?
asks: How does the Iraqi situation play out in our market
: not a factor
asks: is Oracle going to gain value?
: dont like the trading in orcl, although merrill says it is okay, i am staying away
asks: how do you argue with the fact that the majority of blue chip stocks are over-valued by historical p/e's to record low dividend yields, etc.?
: oh, please. Overvalued, undervalued. Market was expensive at Dow 1100
asks: Mr. Cramer, I watch you alot on CNBC'S Squawk Box, and you seem bullish on the market, as am I. What Stock by name if you can say or sector would you feel is a necessary asset to a growing portfolio.
: I am bullish right now, I have been bearish many times. not a fanatic. Like financials, drugs
asks: Mr. Cramer, What do you think of the Market for the Corn industry
: I like shredded wheat more
asks: I remember reading about your mrk option trade...how/when did you decide to start your own business...how much $ under management did you have when you 1st hung out your shingle and how much now-roughly???
asks: When will we see Dow 8000 again? ... 9000?
: hey, I will get that karnac hat on again.. When will interest rates be at 5.65%?
asks: I just started making covered calls, What do you think of this strategy, and would you have any comments of your own on it??
: joker, you are not wild, bad strategy, if a strategy at all
asks: Is this a bad time to invest in small caps?
: small caps--depends on the cap my friend
asks: let me give you some advice Cramer, buy VNT long and make some real money...
: i am shorting VNT tomorrow in your face!!!
asks: As an investor, I'm hanging with my drillers, techs, etc. As a trader, this hurts like hell. How's a little guy stay on his feet in a marketlike this? I ain't got Bridge, Rueters, etc, etc, etc.
: Little guy? Whats the matter with Bristol? Why do you need the pain of a Baker Hughes?
asks: Do you monitor the currency market? If yes, what do you think of the Japanese Yen?
: Yen is going lower, i monitor everything
asks: What do you think about COMPAQ at these prices, long term?
: I wanted to buy compaq so bad today it hurt, but i am long Dell--only need one headache
asks: what do ya thing about investing in AMD ?
: I looked at AMD dec 20 puts today; nuff said
asks: What is a good "percentage" goal to invest each year...
: Hard question--if you like risk 10%, don't 5%
asks: what are your top ten shorts
: I am short very little here--i dont mind the tape
asks: I wonder why CSCO is up there with decreasing sales increases while the threat of Lucent looms!
: Oh please--see my piece tomorrow in
asks: When do you think the tech sector will rally again, and which tech sector or tech stocks you like the most??
: the tech sector is an industry. it will rally with orders
asks: If you could pick 3 stocks to hideaway in your treasure chest and not open it back up for 10 years what would they be?
: MSFT, PFE, CSCO
asks: How is Asian problems will effect the US stock market??
: Asia hurts some of the big exporters (capital equipt) long term benefits the banks
asks: Anything new coming up in the Store that you might want to talk about...you know...for us light hitters!
: I see the store after you do, ask
asks: Do you think you'll ever be an Intelaholic again? What's the long term outlook for INTC?
: Not as long as I keep going to meetings and take it one intel-free day at a time
asks: Hi Jim...what's your opinion on Newbridge Networks? Do you think the bloodletting is over ?
asks: Mr. Cramer are you the professor in back to the future, and if so why is AMAT getting punished so badly.
: nah--he had more hair than I do--Japan orders and korea orders could be vaporized
asks: What makes Dell special?
: low inventory, good turns, good customer service, smart company
asks: How far do you plan to take
? It has limitless potential and could really be someting big...what are your plans? What are your responses to your critics who say it can't be done? Go FOR IT!
: My critics--I am am making a twoway market in Cramer and not laying off any long risk
asks: To what do you attribute the recent strength in MSFT?
: MSFT had great numbers, less hostage to east asia.. Those guys are killers
asks: Is Microsoft's growth sustainable enough to command a 51PE?
asks: Is Apple and or gold a buy?
: Apple and gold can both be shorted till Armageddon, then I would cover gold, ma
asks: What was your biggest losing trade?
: This year was Novell!!!
asks: Are you getting paid for this?
asks: What are your thoughts on the new proposed market circuit breakers?
: Make sense; these don't; way too tight
asks: Since its your area, what oil stocks do you think look good for the short-term?
: Looked at buying chv and mob today--but as far as it being my area--i dont know about that
asks: what's up with year 2000 stocks? Are they overhyped?
: I cant stand them. They suck
asks: On January 1, 1997, you were very optimistic about the stock market and 1997 profits. With much more global instability and deflationary pressures, how worried are you about 1998 earnings by multi-national U.S. companies?
: I was more worried about bonds then than now; now global inflation in sight is great news
asks: is it time to put money in Japan? Has it hit bottom
: I like Japan-haven't found the vehicle yet though0-
asks: How long do you believe the choppy market will continue
: Until this mutual fund selling period is behind us and money comes in
asks: are there one or two good proxy stocks for HK such as chl that you can trade?
: Don't care for that market
asks: You wrote that you don't use technical analysis of any kind? Not even general Market data like ADV/DEC line? Nothing?
: I look at advanced decline, i am not blind, but I am not a 200 day man
asks: i'm tired of averaging down battle mt gold. any hope for this stock or should i pack it in?
: It's a loser; sorry
asks: Hi Jim, What is the target annual percent return for your hedge fund and how are you doing this year?
: dont make targets--broker speak
asks: What is Jim Cramer's view on buying computer and component stocks at current prices?
: I am long Dell, but not any peripherals or semis
asks: What is the greatest threat to the market...deflation, recession or valuations?
: recession-the other two are fine
asks: Why avoid Oracle?
: why be in it--numbers trimmed yesterday by morgan stanley; scared me
asks: What do you think of Rite-Aid Corporation, symbol RAD?
: Looked at it today; haven't done enough homework though
asks: Jim, what is the problem with Kodak, lay offs, stock tumbling?
: Fisher--he is clueless; Fuji is good, too
asks: What do you make of the rally in the Baby Bells and the whole Utilities Index?
: Signals dramatic slowdown in world growth, which is true
asks: should I be long or short yhoo
: I am perpetually long Yahoo, what can I say. Good riddance to Vinik
asks: Jim,When are you going to have your own show on CNBC?
: Talk to the Trading Goddess and to Jack Welch--they are in control
asks: What`s holding COMS above 30 ?
: COMS has blown it--i am short it
asks: What is my best bet for a short term investment (less than five years)?
: Taradawn--i dont know your style so I am relucutant to name stock or fund
asks: What do you think of the future of Western Digital?
asks: Is Wayne Huizuinga a genius or a crook? Should I buy Republic?
asks: Any thoughts from the Trading Godess today?
: TG doens't like it here, still; she is driving me crazy Why buy from that guy?
asks: How do you think the SE Asia turmoil will impact the traditional year end rally and the "January effect"?
asks: How do you view the future for Netscape
: NSCP==got the clown prince in there buying so look out!!
asks: Will ASND rise again like a phoenix or wallow in present ambiguity?
: no--ASND has also blown it-ASND is not a religion it is a company; not blasphemy
asks: What mutual funds do you like for long term growth?
: Long term: Brandywine, Contra, FIDO blue chip
asks: What is your opinion on Data Broadcasting Corp? (DBCC) They just did a Web deal with CBS and announced a new product to compete with Bloomberg. the stock has not done so well over the last year, but of late it has bounced up a bit
: i dont like those guys.
asks: Mr. Cramer, why did Yahoo! use such an unflattering picture of you? Did you approve it?
: Don't bother me none
asks: The fourth quarter of 1997 looks an awful lot like 1989. Agree? If so, that would imply that January will be down because January 1990 was down. Agree?
: Wow, a history buff. Don't see the analogy holding though
asks: what do you think of MCI/ worldcom, Att
: It's over--missed T==want to hang myself over it, but have hung myself many times over now
asks: Outside of techs... what is your best sector pick?
: Financials or drugs
asks: if you are not getting paid, why do this? big ego?
: Oh please. I like doing this. I like talking stocks. You gotta problem with that?
asks: Has internet trading had a marked effect on this market with regards to volitility
asks: What do you think of Larry Ellison's push for Network Computers, do you think this is going to become a viable product.
: boring, i wish he'd shut up
asks: what did you buy today?
: IBM, CSCO, RDC
asks: When do you see a recovery in the disk drive makers like Western Digital?
: long cycle--need to see inventories down, production cut==hasn't happened yet
asks: Today, the FCC approved up to 49Ooreign ownership of telecoms companies... since the BT/MCI deal fell apart, where do you think that BT will end up?
: Dont care; they are stupid as wood at BT
asks: do you play any of the biotech's? if so which one's do you follow?
: No, although
has the best biotech reporter in the universe
asks: Are money managers worth the fees?
: Depends on the manager; we are not baseball players, all of whom make too much
asks: What is you feelings on SOES trading, I have lost a substantial amount in last 2 months
: SOES--Drop the E and send one
asks: Is Boston Chicken a buy at ?
: My kids wont use the bathrooms at Boston Chicken; too dirty
asks: Is all your research based on fundamentals?.
asks: Is it true that Nikkei PE average still over 40?
asks: "where do you make money faster-long side or short side?
: short side
asks: I am a new to the investment scene and I am about 25 years old and would like to invest around a month what do you suggest I put the money into
: i dont know your risks and i dont know your stomach
asks: When you search for a stock, what are your top three filters?
: Jeff Berkowitz, my wife, and the balance sheet
asks: Do you like tobacco stocks????
: no--they stink
asks: Why so positive on PFE?
: PFE is the key to this market; best mgt; best pipeline
asks: any truth to the marriage between IBM and ASND?
: Darth, you be wearing ASND all the way down, methinks
asks: Should Intel be concerned with AMD and Cyrix?
asks: How far will bonds drop?
: i dont know--utility index signalling another 50 basis points
asks: Would you buy Ameritrade here?
: I like Merrill--dont know Ameritrade well, but like the company (advertiser. i disclose)
asks: What do you think of your Bloomberg?
: love Bloomberg
asks: any thoughts on satellite stocks, like TSATA?
asks: What is it that makes Gateway2000 less attractive than Dell?
: They are clueless and I hated their customer service
asks: How will Nationsbank preform after such an expensive purchase of Barnett
: You are biased; Nations will do fine; great firm
asks: EDS- is it dead, or what? It just sits there
asks: What do you really want to do with your life?
: Play quarterback for the Philadelphia Eagles, but it aint gonna happen
asks: Any thoughts on CPQ buying DEC rumors?
: I think they looked at it and passed
asks: How much of recent run up in Bonds due to world financial crisis and how much to fundamentals?
: Mixture of both
asks: is it worthwhile to try to play IPOs as an individual investor?
asks: what do you think of this climate of high p/e ... no fear?
: I live with fear as my constant companion and am a bit sick of him but he's not going away
asks: Jim, Long or Short Vivus Inc?
: Nothing on Vivus
asks: I'm a day trader/Soes Bandit what do you think of the future of my profession?
: Don't quit your night job
asks: What do you think of AirTouch communications
asks: How do you like TXN going forward?
: I am short TXN-don't like it at all
asks: What do you think of Green Tree (GNT) since the drop
: don't trust those guys
asks: How do you relieve trading stress?
: I work out everyday
asks: what do you think of online gaming (gambling) stocks and online video game stocks
: don't care for them; i am a good blackjack player though
asks: What do you think about NIKE?
: nike is history
asks: are you still high on telebras?
: I am not a drug user
asks: My kids get enough of Nick, MTV and Blockbuster, is Viacom a buy???
: I am short viacom, but my kids are the same way-but our kids cant read balance sheets
asks: What were you doing during the 1973/74 Market years?
: Selling Ice cream to the upper deck of Veterans Stadium
asks: What was the first ever company that you invested in?
: American Agronomics--one week later its crop was wiped out by an early frost
asks: What are your thoughts on ERICY and APM??
: Id rather be short then long em
asks: how is your hedge fund's performance this year?
asks: Any opinion on GMH -- their satellite stuff looks interesting!
: stockmeister, you are back for more--dont like them either
asks: Which indicators do you use, if any
: The bonds
asks: Jim, outlook on cable industry?
: Bunch of jokers
asks: Any opinion on Iom or syquest?
: IOM has some good products, like them more than the stock
asks: Is FIDO the one selling the OSX stocks?
: Yeah, like they tell me. give me a break, they dont tip their hand to me
asks: What do you think of dis and ccl
: Love DIS, CCL--who needs it when you can have DIS
asks: What part of trading do you enjoy most?
: Taking profits
asks: I recently spent 6 months in Southeast Asia, McDonalds is everywhere and is packed all night long. What is your six month target price?
: Hey, have you tried the new BK fries--they are darn good. dont like Mcd
asks: What do think of Cabot Newsletter?
: He's a hack
asks: how long will the divergence between bonds and stocks continue?
: 43 hours, 6 minutes and 37 seconds
asks: Do you use the internet for any trading info?
: i use
; I dont use BriefQUoteBroadFool
asks: what do you think of cs, cabletron
: serious short there
asks: Jim, How much do you use stock and index options, instead of stock
: lot of times i use deep in the monies; call and puts--no index
asks: How about cabot oil and gas?
: Same as Cabot market letter; no thanks
asks: Do you use stops?
: Hey Mark--no--just mental ones
asks: what is the minimum investment for your hedge fund/
: I am closed; you can't get in--not selling (not a neg sell, not open)
asks: How many stocks do you hold long at one time (usually)?
asks: throw us a tenbagger jimmy
: Tenbagger???? Hmmmm,too hard, I do love CISCO though
asks: Is it advisable to diversify into foreign markets as well as Candian?
: Canadians are nice
asks: What effect will further Japanese bank collapses have on the global markets?
: bullish at this point; get those undisciplined jokers out of the game!!!
asks: do you trade or flip new issues
asks: How much room do you give losers?
: About a quarter point's worth of room
asks: what's the best book you've ever read about the market?
: Andy Beyer's Picking Winners
asks: How do you know when to call it quits and sell a stock... I just keep holding on and have gotten burned
: Never ever give back that profit. Never. Never
asks: How long can Gold stay down with Japan crumbling?
: Gold just started its swoon, my friend
asks: Jim, why dont we ever see you with Jimmy Rogers on cnbc ? I think the two of you would be a fantastic contrast...??
: Because I have children at home who might be watching
asks: Barton Biggs came on CNBC and said that this was the great tech top and tech are doomed for 7-8 years! Your response!
: Yeah; he is not da man
asks: Will Travelers/Salomon be a winner?
: Hey Cement Head--you bet
asks: Jim- How Jim- when is your wife going to join you on one of these
: My wife thinks my computer lust is nuts--she is sick of all ofmy on line stuff cept
asks: Calif. will deregulate utilities in Jan'98., Any good buy's
: Yeah, a house in California. who wants a cal ute??
asks: Jim, what stock have you held the longest and still hold? How long?
: Fairchild corp; great turnaround, but it is in registration for a secondary
asks: WHO will win the Super Bowl?
asks: What about RMBS for investors, not traders? Any chance INTC will take it all?
: Oh please--rumormonger somewhere else--
asks: Other than
what other sites do you like?
: No other--I think the other guys will be history in a year--even Mister Softee's thing
asks: Do you believe all the stories in Liar's Poker?
: No--he wasn't a hitter. I believe stories from hitters; he was a piker
asks: Jim, who do you trust?
: My wife, my partners, my Dad, my kids, my people in the office
asks: What rating do you give M.METZ the perennial bear?.
: He has made me a fortune every time he opens his mouth--plenty of stocks to buy
asks: WHAT ABOUT CS RECENT COLLAPSE
: CS--they are histoire
asks: What do think about Buffet buying zeros?
: Wow--he's a genius and a bow down to him-- who cares what he does-he's no god
asks: how would u play outbreak of hostilities with iraq
: Take a vacation
asks: Should I buy more U.S. Surgical between -?
: Yeah, really great idea. Hey why dont you buy the whole company. Not
asks: where do u see the DOW in late 1998 ??
: I think we go higher
asks: will you hold asnd
: Yeah, as far away from my nose as possible
asks: is peter lynch really as patronizing as he seems to be?
: Yeah, he does seem that way doesn't he; rather a shame I think
asks: Jim, have you ever made a single stock move based on something you've said?
: Look. the government turned my life upside down over this issue-that's why I don't talk about any small cap stocks; it is dangerous for me
asks: sir another question usd/yen is appreciating does that mean that japanese will tend to invest more in u.s bonds stocks since they will get gould returns good money made when converting money back through usd/yen
: We will be lucky if the Japanese have two nickels to invest when this is through
asks: is Graham and Dodd investing dead
: No, just hibernating
(The chat is continued in Part II)