NEW YORK (
) -- 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:
- what really matters for tech stocks
- why investors are overlooking good news about credit trends; and
- why there is no bubble in gold and copper.
for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
See The Tech Forest Through the Trees
Posted at 4:38 p.m. EDT, Friday, Oct. 15
It only took
to go up $9 and
to go up $60 and
to get an inquiry to realize that tech stocks are undervalued. I am surprised even that was able to do it.
The people who own and trade tech are more concerned with the bad orders from
Kulicke & Soffa
-- some outfit only they have ever heard of -- than on the big picture, which is the mobile tsunami, which includes the iPad, smartphones and mobile advertising -- Google!
This is a repudiation rally, a repudiation of all of those managers who think small, who are more focused on last week's order numbers out of Taiwan than on the game-changing mobile excitement that is just really beginning.
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It drives me crazy to see that these managers, typically hedge funds, are largely focused on total minutiae. Remember how negative they were about
quarter, the one that had something wrong with it that I can't even recall? Remember how they only heard John Chambers say he is worried about a couple of weeks of business, and how no one listened when said that things had recovered? These small-minded people are focused on whether
stuffed the channel or whether
had a tick down last Friday in its orders. They are so, so shortsighted.
Anyway, today the market declared them totally shortsighted and I would not be surprised if, next week, you see money plowing into the
. They have lagged.
They can, in this backdrop, now begin to road.
At the time of publication, Cramer was long AAPL.
Mortgage Mess Obscures Good Credit Trends
Posted at 3:22 p.m. EDT, Friday, Oct. 15
You know what the true crime against these bank stocks is? We were at last getting some terrific news on all sorts of credit woes: credit cards, auto loans, even mortgages. Credit losses had peaked and reserves had been built up. Fees, which fall right into the bottom line, are rising and the businesses that violated fin reg were well on their way to disappearing.
In fact, the number from
this week was nothing short of extraordinary. We know there's a big dividend boost coming, and the capital is so sufficient that the bank bought $2 billion in stock. I am highly confident that this whole affair will be a glancing blow for the company. We saw great credit card numbers from
, too. The story was just beginning to develop.
Now we have technical breakdowns and worries about the bonds, which have been selling off for days. We have scared holders who aren't price-sensitive or even news-sensitive, as the banks are starting to quantify the potential losses -- and they aren't that big.
Against that, though, we have politicians, we have media and we have heroes -- those who are trying to keep their homes -- vs. villains -- the big bad banks that now all feel like Potter banks from
It's a Wonderful Life
We have 50 states' attorneys general. They are almost all media hogs. Every time they come on, these banks will take a hit. Not only that but we haven't even heard from Meredith Whitney yet.
Is a great buying opportunity coming? Yes, given that credit loss peaks mark terrific times to buy.
But once again, it is not price, but time -- the sellers clearly don't care where they sell. They just don't want to own while the headlines are so toxic.
At the time of publication, Cramer was long JPMorgan.
This Is No Bubble
Posted at 10:05 a.m. EDT, Wednesday, Oct. 13
Gold's running out -- can't find the stuff. Copper's running out -- can't find the stuff. Within the last 24 hours, I have heard executives in both industries make these points. Last night I was with an owner of a major gold-mining company who would love to plow more money into his business in order to find more gold. He just wishes there was something to plow it into. He can't find big chunks of the metal except in places too dangerous or too unsympathetic to business for mining ventures.
Also last night, Richard Adkerson -- the straight-shooting CEO of
-- said the same thing about copper. He can't find more, and he'll have to return the money to the shareholders.
You have to understand the voracious worldwide appetite for the precious and the non-precious, alike. There are reasons -- not speculative reasons, but real reasons -- that both copper and gold have kept going higher. Remember that 34 cities with six million people in China need to be wired, and even if you think there is a property bubble, there is no
. Remember, as well, that the middle classes all over the world want gold in order to protect themselves
These two trends aren't going away. Moreover, much as
sold a stake in one oil field to
, we are likely going to see the Chinese buy stakes in copper- and gold-mining companies.
I believe Freeport-McMoRan is still a buy, especially if the company starts returning capital in the form of large dividends. As for gold stocks, I want to own them -- particularly
-- even up at these levels. Same goes for Freeport McMoRan, which is already rallying hard on this news from last night's interview with Adkerson.
It's too good, with too much demand and too little supply. This is not a bubble -- it's genuine use. The time to sell the miners is when the costs to mine are so high that they make very little money. We are nowhere near that now, particularly with Agnico-Eagle and Eldorado costs of about $400 an ounce in all. Given the $1,350 price tag, we can own them for some time to come.
people, we have a very good note summarizing
out this morning.
At the time of publication, Cramer had no positions in the stocks mentioned.
Jim Cramer, 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 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.