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:
- speculation by retail investors,
- the bears' lack of claws, and
- flying with aerospace.
for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
Small-Fry Investors Jump on the Sub-$5 Stocks
Posted at 11:36 a.m. EDT, Aug. 24, 2009
Retail investors are warming up to this market. You can see by the jumps in the low-dollar stocks. I just hope it is warming up to
low-dollar stocks. They are in love with
( FNM) and
( FRE), I imagine because they think these are the best plays on the turn in housing. I don't think the government has really spelled out how much money these companies must return to the government before figuring out what is left for the common. There is little research out on either, so it is pretty much a dice roll. Man, are they ever on the move, though. Same with
. Not a lot of there there, at least for the common stock.
I have obviously been a huge supporter of
, betting that it should trade back to book value, but I also don't have a case that it should go
book value of $5.75 until after we see the quarter, which will be additive to book. In the meantime, the government will be able to take its profit and the overhang can be easily chewed up. I do not know why the government doesn't declare victory rather than wait until Sept. 10. The government's playing the market, which isn't what we want.
I am a huge believer in
Fifth Third Bank
, with the last two having a lot of room to romp and the former in good shape to do an acquisition. Given that we are waiting for hundreds of banks to fail, there could be ample opportunity. (Query -- why haven't more failed yet? Answer -- the FDIC is letting the bad banks run and run and run, bad banks meaning banks that have to pay up for hot money via high interest CDs that we will all be on the hook for.)
I like the mobile Internet plays on the move, notably
( TLAB) (still very cheap),
. They are all cheap on a multiyear-move basis. On the other hand, I don't know how people can buy
Level 3 Communications
given that balance sheet. That's
a mobile Internet play.
Finally, there's a new one today:
Advanced Micro Devices
. I have been behind this one since $2, and when it hit $4.75 and then dropped a dollar, I felt like I was totally off my game.
But when I read the Citigroup upgrade, I have to tell you that all of the reasons I liked it -- big cash position, good relationship with
, a good back-to-school season and a new replacement cycle of equipment using AMD's chip are now coming true. Plus, as Citigroup points out, the company trades at a 45% discount to the group. Valuation? Citigroup's saying that its two pieces -- the product company, worth $5.08 (how is that for granularity) and the global foundries' 54 cents -- give you the $5.62, certainly a reasonable price target.
It's cool to speculate. AMD should be up. It is
cool to speculate without facts. Sometimes I feel that's exactly what's happening. One last thought: If you think the trend continues, go buy some
. They have huge share in stocks like Citigroup and are making fortunes, hence the stock flirting with its 52-week high.
: Not included in this under-$5 piece is
, which has really caught everyone's fancy after Robert Benmosche's comment that he is confident of paying the government back. Tall order. ... Those who came in short because they were short calls, perhaps because the Transports didn't confirm, might have to scramble because of the Transports' breakout...
At the time of publication, Cramer was long Hewlett-Packard.
The Bears Have No Claws
Posted at 3:38 p.m. EDT, Aug. 25, 2009
They had their chance.
The Transports had given up the ghost. The banks were reversing. Oil's down 2 bucks. Tell me this shouldn't have been the bears' day. I mean, this was a fabulous combo they had ... and yet they couldn't deliver the knockout punch.
Maybe it's mark-up fever. Or perhaps people recognize somewhere that consumer confidence and Case-Shiller
and that we are in better shape than we thought.
I do marvel, though, that even when you think this market's on the canvas, when popular fave
reverses and when house-on-fire
gets clobbered and the levitating natural gas plays give it up, we should have gotten hammered.
I know, I read the site. I know that the advance-decline and new-highs and put-call and sentiment indicators are signaling that this market ain't so hot.
But the market itself?
Hot as a pistol.
At the time of publication, Cramer had no positions in the stocks mentioned.
Flying With Aerospace
Posted at 2:37 p.m. EDT, Aug. 27, 2009
This reversal seems to have some oomph to it, and I wonder how much of it is simply the desire of fund managers to move their stocks up. I bet it is, so I would take some
here and some
, and I like
Bank of America
here as stocks that are up nicely that can be propelled well.
And now we have a whole new cohort going, which is aerospace. If
ship, then you can buy a host of companies, including
( GR) and
-- the last could be
I know there is tremendous back and forth on this site about a top. But this market is led by oil, banks and tech ... and now aerospace. I like
, Bank of America, and Apple as ways to play it.
Oh, and one man's opinion -- it feels like we had the dip.
At the time of publication, Cramer was long BP and Bank of America.
Jim Cramer is co-founder and chairman 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
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