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:
- playing the best and the worst of the regional banks,
- the iPad driver, and
- terrific retail reports.
for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
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A Barbell Strategy on the Regional Banks
Posted at 11:06 a.m. EDT, April 5, 2010
The regional bank rally continues, and the group is ready to roll as the banking crisis runs its course. I am suggesting a two-pronged strategy -- the best and the worst.
The best? Arguably
, both of which have made some good acquisitions and solidified their positions in both corporate and individual banking.
I am staying focused on this group in part because they are a secondary way to play the commercial real estate bottom that
talks about this morning. Of course these are not New York commercial real estate plays. They are more plays on back-from-the-dead via equity markets (the worst) and consolidation via the FDIC.
I don't know if you have noticed, but the deals for these banks have ALL WORKED. Not only that, but the FDIC seems to have pretty much completed the nastiest of the bank disposals, and I want to point out that the whole "collapsing bank" theory just didn't happen, at least in a second wave.
I am a firm believer that the housing market, which stabilized nine months ago, is now about to start appreciating ever so slowly, as we pretty much have a national moratorium on eviction. That takes the shadow inventory and shoves it away. I think that you won't see a difference when rates start going up and the tax credit goes away -- all that matters is if we get house price appreciation, which will truly force people from the sidelines. I also believe that we are about to see a surge in immigration back into areas that have been booming, in part because of the universal health care the country now offers. Nothing pejorative. You get a better deal in this country than others that people might be living in now.
When you combine new immigration with a slow new build and a moratorium on foreclosure, you get a change that makes it so the best and the worst do better.
Bank of America
? All good -- and we own BAC for
-- but the trade
is the barbell view.
At the time of publication, Cramer was long Bank of America.
Why Like Apple? The Answer Is on the iPad
Posted at 1:42 p.m. EDT, April 7, 2010
Guy stops me today when I am getting my hair cut. "Still like
I ask him, simply, "Have you seen it, have you used it?"
He said he hadn't seen the iPad.
I told him that it was a waste of time to talk about the stock, because what matters is the device, and I think the device is the most exciting product I have ever had the privilege to own.
I own a Mac Air. I have an iPod. I had an iPhone, which I gave up on because of AT&T Wireless. I have a Mac desktop.
Every one of these was exciting.
None of them did what I really wanted, which was to have an un-tethered, high-resolution machine that allowed me to watch and read things on the go.
Now, has the stock moved too much? I
if you bought it for a trade to sell some into the launch. Those who sold it all on that call are now Twittering me that I hurt them. I didn't. I was advocating trading discipline. I am not touching it for
until $300, where the valuation case, ex-cash, begins to get stretched. (It's at 16 times earnings now.)
I am simply pointing out that this machine is so compelling that if you can imagine not having a PC and everyone else did, you would have to go buy one. That's what is going to happen with the iPad, which is why, even if it didn't sell out this weekend, the stock keeps going higher.
Plus, this is the first device that will be corporate from the get-go, and everyone in the corporate world knows that corporations have been loath to support Apple.
Now they will.
At the time of publication, Cramer was long AAPL.
Stay Aware of the Good Retail Reports
Posted at 11:11 a.m. EDT, April 8, 2010
We've got a difficult delayed reaction to great retail sales. You can see it best with
. It is almost as if people are tired of looking at good news from TJX. So they initially ignore it. Then it takes off.
did the same thing. You get a $55 opening -- in part because of Greece -- and then you catch a quick buck.
Bed Bath & Beyond
starts the day at $44.5 and then goes to $46.19, because, again, it doesn't matter.
I think there will be another wave tomorrow when people start raising numbers off this data. (By the way,
is down because it was up only 1% more, but that doesn't mean numbers get cut.)
We are in a weird moment where there is ennui about good news. People expect that these companies are going to do well, so when they do, no one seems to care.
Don't get bored. Don't get inured to good news. Good news matters. It's a bull market. When you see stocks that don't react to good news, don't presume that's the end of it.
Presume it is the beginning.
At the time of publication, Cramer was long COST.
Jim Cramer, co-founder and chairman of TheStreet.com, writes daily market commentary for TheStreet.com's RealMoney and runs the charitable trust portfolio,
. He also participates in video segments on TheStreet.com TV and serves as host of CNBC's "Mad Money" television program.
Mr. Cramer graduated magna cum laude from Harvard College, where he was president of The Harvard Crimson. He worked as a journalist at the Tallahassee Democrat and the Los Angeles Herald Examiner, covering everything from sports to homicide before moving to New York to help start American Lawyer magazine. After a three-year stint, Mr. Cramer entered Harvard Law School and received his J.D. in 1984. Instead of practicing law, however, he joined Goldman Sachs, where he worked in sales and trading. In 1987, he left Goldman to start his own hedge fund. While he worked at his fund, Mr. Cramer helped start Smart Money for Dow Jones and then, in 1996, he co-founded TheStreet.com, of which he is chairman and where he has served as a columnist and contributor since. In 2000, Mr. Cramer retired from active money management to embrace media full time, including radio and television.
Mr. Cramer is the author of "
," "You Got Screwed," "Jim Cramer's Real Money," "Jim Cramer's Mad Money," "Jim Cramer's Stay Mad for Life" and, most recently, "Jim Cramer's Getting Back to Even." He has written for Time magazine and New York magazine and has been featured on CBS' 60 Minutes, NBC's Nightly News with Brian Williams, Meet the Press, Today, The Tonight Show, Late Night and MSNBC's Morning Joe.