Jim Cramer fills his blog on
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:
- the China bubble;
- stocks that benefit from record oil; and
- how to avoid pain from the financials.
Click here for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
China Bubble? So What?
Originally published on Oct. 29 at 8:44 a.m. EDT
I don't care if China's a bubble. I care about making money. And that's one of the reasons why I am so disliked by so many "professionals" on Wall Street.
A couple of weeks ago when
was at $209, I went on
and talked about a conversation I had with Patrick Schultz, one of the fine researchers who work with me at TheStreet.com. Patrick had just completed a video with me in which he said Baidu could double and it would not be outrageous. He didn't say it would be cheap, he simply said it would not be outrageous. He even hinted that it could trade much higher than that.
No sooner did I finish the appearance on
with my good friend Erin Burnett then I was bombarded by angry hedge fund managers who were short Baidu.
One went so far as -- holy cow! -- accusing me of doing "no homework." That, by the way, is always code: code for "you disagree with me and you are a nitwit because you do."
(In a line of total arrogance, albeit parenthetical, might I just say that I am always amazed at how stupid I am and how little homework I did and how many tens of millions I made in the market. I guess it shows that the more stupid you are and the less homework you do the more money you make.)
I initially tried to debate these poor, angry souls, but that is never worth it, because they are really just jealous that they are not on TV driving home their points and that my statements have just caused them to lose even more money.
That's OK, too. Being wrong costs money.
What amazed me, oddly, was that any of the critics really thought I believed that Baidu "deserved" to be at $500. I could care less what Baidu's worth. I care about what it could trade to. I couldn't care less if it is "overvalued."
Of course it is overvalued
. It was overvalued at $100, $200 and now $300. Oh, and stop trading, it will be overvalued at $400.
What I care about, as I said at the top of this piece, is making money, and sometimes you have to suspend the rules to make money if that's what you
want to do.
Some people want to be "right" and make money, and I am telling you that being right is not always the same as making money. Sometimes the really rigorous thing to do is to "suspend" your judgment temporarily and play the bubble because the money can be made so fast and it is so lucrative that it is worth playing.
"Aha, the intellectuals say, "how do you know when it will stop? How do you know you won't get caught in the bubble's bursting?" To which I say, "I don't know, who cares?" I think what is more important is that you choose the right instrument to play the bubble and play it whole-hog.
For example, if I really wanted to play Baidu I would have used stock replacement, I would have bought deep-in-the-money calls out a couple of months and then rolled them up each time it took out a new milestone. That way, in the end I am playing with house money and cutting my risk by accepting a 25-point loss -- typically the depth of the strike I pick -- in order to play the bubble. Again, I don't care that it is a bubble, I acknowledge that it is a bubble. I just want to be able to capitalize off the bubble rather than simply say "Nope, it is a bubble, I know better."
In the end, this is a fundamental difference between me and most others who have been at this game for a long time. It is why I was and will always be glad that I caught the last 2000 points in the
in the 1999-2000 period even though I am reviled for not giving everyone the sell call or for staying bullish right up to the top and still recommending stocks. I don't know how else to do it. If you think I am going to sit on the sidelines and pass up 2000 Nazz points out of principle, you are nuts!
So, I say, criticize me all you want about recommending Baidu, or
-- the four horsemen of China -- I will ride them to the bank, and then I will give some back when the bubble bursts. But not before I have taken enough off while the critics sniffed.
Or, to put it more succinctly, they don't ask you at the bank whether you made it in Baidu.
They just take your money like any other deposit.
At the time of publication, Cramer had no positions in the stocks mentioned.
As Oil Stays High, It's Time to Drill Deep
Originally published on Oct. 30 at 11:30 a.m. EDT
Lots of people on
Stockpickr always want to know whether a break in a stock, the first break, is worth buying. The vast majority of the time, the stocks are simply not down enough.
I see three that I would buy, three that are down that I would begin to purchase right now:
These are oil technology stocks, companies that help you get the most out of old fields. These are the most logical plays as long as oil stays high. They have the technology that makes it possible to get oil that might cost $50 or $60, oil that you wouldn't bother with normally but you should now.
Recovering hard-to-get oil is so important right here that these three companies can raise price with abandon. Last night, FTI reported a magnificent quarter, but we know what's going on today: The price of oil is down, so these get hit hardest.
They are the ultimate highfliers in the patch. They are real
Investor's Business Daily
stocks -- that paper has the best stuff on what they each do, although their overall tasks are to get at the tough oil, with Core Labs being the most obvious play.
Again, first day down, usually dangerous. But you have to start somewhere. I would put on a third of my position
At the time of publication, Cramer had no positions in stocks mentioned.
These Stocks Worked in '90, They'll Work Now
Originally published on Nov. 2 at 2:35 p.m. EDT
What are the 1990 growth stocks, the ones that can transcend the financial gravitational pull?
Remember, there were some then, and there will be some now. Today's a great day to look at them; it's the ones that are up or strong. Let's see what they have in common.
Aerospace and defense. Yesterday General Dynamics lost a huge contract to build Littoral Ships. The stock is up. Same with Boeing. That group's not quitting. (My fave is the reduced expectations Raytheon.)
Oil service -- Not a U.S. dependent business so you can buy RIG or HAL.
Fast-growing tech: RIMM, AAPL, GOOG, NOK.
Indestructibles: MO is best. Consider CLX, KO right here.
Golds: ABX and NEM plus AUY.
Health care cost containment: IMA, HOLX, MHS, CVS (my favorite group.)
Oil and Gas that replenishes: APA, XTO.
Ag -- Deere, Monsanto.
These can resist the ABK/Citigroup/Merrill complex. Not many others can.
At the time of publication, Cramer was long RTN, RIG, IMA, CVS and XTO.
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. Watch Cramer on "Mad Money" weeknights on CNBC. Click
here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click
here to order his 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.