On Some Trading Days There Isn't Much You Can Do

Cramer listens, asks questions, forms opinions, but then he wants to see if his opinions are right.
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Two hundred up; two hundred down. No problemo.

I wish I could tell you this is a vicious down-200 day where opportunity abounds and bells are going off to buy, but there really isn't much to do.

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We have been listening to conference calls and asking questions and finding out what analysts think about the quarters just passed.

Remember what we do here. We listen, we form opinions, but then we want to see if our opinions are right.

Last night, for example, I thought that

Amgen

(AMGN) - Get Report

come-down was too dramatic. Jeff thought it made sense given the fact that it is a high-multiple, high-growth stock.

So we had to check around, make some calls, read some notes and ultimately reach the same conclusion Jeff reached on the fly: It is okay to buy some, but it ain't going up any time soon.

In the background some guy is droning on about how

USG

(USG)

should bounce and I have to laugh. I used to do that stuff all of the time. I used to say the stock is wrong and that the people are misinterpreting how cheap the stock is, because the multiple is so low and the earnings are so high.

Wrong! You buy cyclicals when the earnings are troughing, not peaking. I don't think USG will make those numbers. Obviously somebody else doesn't. Like the shareholder base in general. Must be all of those plants that came on stream.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Amgen. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com .