Read the Transcript of Cramer's Latest Yahoo! Chat

The Trader discusses everything from the Red Hots to the Knicks.
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James J. Cramer chatted on Yahoo! on Tuesday, Nov. 30, at 5 p.m. EST. As with all chats, this transcript is unedited.

laura_the_street:

We are ready to start.

Creme_Delacramer:

Hey, how about that nasty sell-off--lets get right into it!!

Bre32897 asks:

How long do you see this correction you've talked about lasting?

Creme_Delacramer:

I think this is going to be no more than a couple days affair. I still like this market very much and want to buy it.

chartool asks:

Do you still see heavy institutional buying tomorrow ?

Creme_Delacramer:

Usually, the first day of the month has heavy heavy institutional buying but I think that the profit-taking today may mute it a bit.

kmfdmmd asks:

What do you think AOL will be at the end of Jan? Short or Long after a 100% run?

Creme_Delacramer:

I am long, and remain long AOL as one of two premier players in the on-line world, the other being Yahoo. I bought both today on weakness.

trapper377 asks:

I am looking for long term growth stocks? Any ideas?

Creme_Delacramer:

I think you want to stick with the great technology and telecommunications companies that I write about all of the time on the site. I am talking about the Ciscos and the SUns and the AOLs and the YAHOOs all of which I purchased today.

lgerek_99 asks:

What's the 12 month target for UPS?

Creme_Delacramer:

I think this company could go to $100 if the oil price comes down a tad.

lufml72 asks:

Are the clashes in Seattle a reason for the market's downturn today ???

Creme_Delacramer:

No, those are a sideshow. This was profit-taking pure and simple.

dcraze asks:

BRCM down big today...Time to buy?

Creme_Delacramer:

Ouch, this one nailed me. I bought some and I think it could rally right back. But be careful, this stock trades in 50 point increments!

bronte411 asks:

Are the B to B stock for real?

Creme_Delacramer:

Matt Jacobs and I sure think so though I know many venture capitalists who doubt that. I would take a look at our rotisserie league and see how we drafted stocks if you wanted to know which ones we really value. We have done some great articles about the relative worth of them. Also our chat boards have been a tremendous source of information on this stuff.

Ohh_Brian_YESSS asks:

Jim, for the Red Hots and the B2B rotisserie league, don't investors have to worry about secondaries and ending lockup periods??

Creme_Delacramer:

Oh that is always going to be a worry. I mean if you check out our boards on Ask Jeeves, a stock I like very much I think you will see that people are possessed by the lock-up expirations. I think these things have a habit of being priced in. I don't fear them. Take a look at Redback and Juniper. The lock-up expirations were just small bumps on the road!

lyncha00 asks:

Strike 1 - consumer confidence peak, Strike 2 - housing and construction numbers, Strike 3?

Creme_Delacramer:

I don't think this is a baseball game.

po_boy_25m asks:

To hear Pasani (sp) at CNBC tell it, there are no more gains in the major tech stocks to be had in the short term (he used QCOM as an example). You don't believe that, I take it.

Creme_Delacramer:

Not at all. I think Bob was really quoting some bearish hedge fund manager. Actually I think those guys at CNBC were reading my "take profits" call but didn't want to mention TSC on the air as we are not that well-liked any more over there, which is too bad because I miss being on Squawk. Big time.

Riesen_Investments asks:

Think the financials can make a comeback and stay?

Creme_Delacramer:

Two things have to happen. We have to see long rates stabilize right here and the Fed can't tighten again. Those are big ifs.

dgendler asks:

Between CSCO and SUNW, who would you pick, and why?

Creme_Delacramer:

Oh darn, those are my two faves: don't make me choose. BUY BOTH!

granby607 asks:

Drug stocks? esp. BMY, hold or what?

Creme_Delacramer:

Those are boring right now with rates rising. I think that BMY is the best of the lot though.

lmkulchytsky asks:

Why do you like Verticalnet?

Creme_Delacramer:

Because I think it will be one of the winners along with Ariba and Commerceone of this B2B world. I think it has critical mass and is well-liked by industries involved in b2b.

CRAIG84111 asks:

Jim I bought AT&T last week at 49. Do you like the stock going forward?

Creme_Delacramer:

First, congratulations. Second, I would hold it as they are determined to bring out value no matter what. Wireless there, by the way, is smoking!

dcraze asks:

Old tech (Dell, Intc, Msft) have lagged - time for a Y2K meltup?

Creme_Delacramer:

Nah, they are just okay here. I am always long Intel and MSFT (I have no Dell right now) but they will come back in fashion again.

BillyMumphrey asks:

Is there much more upside room for Cisco?

Creme_Delacramer:

I sure hope so Billy -- good to see you -- as I think this company has the best product portfolio for the Net infrastructure.

nhat8888 asks:

You don't seem to say much about Real Networks? It's not a B2b or Red Hot yet it is sure hot!

Creme_Delacramer:

In truth, I missed that move badly. I have to admit that I am a Broadcast.com fan and got blinded to anything else.

jeremylrt asks:

How do you like new IPOs SCMR, AKAM and FDRY at current levels?

Creme_Delacramer:

I think they are extremely expensive and yet I would buy them on any pullback, particularly AKAM and SCMR, which I am currently long.

hotbert asks:

Which semi stocks are you looking to get into on this weeks tech pull back?

Creme_Delacramer:

I want to get back into TXN, ADI, and maybe ALTR. I have sold all of those.

choosyg asks:

I know you are a fan of VerticalNet. Can you tell us what impresses you about this company?

Creme_Delacramer:

I think if you read any of the research on these guy you will see that they have the most companies coming to their sites of anyone.

joseph1900 asks:

Why did they downgrade BVSN today?

Creme_Delacramer:

Yeah, what a bummer, but it was mostly valuation. I find all of these stocks absurdly valued, but if you get one right you could make a fortune and that's what people are doing, speculating on finding that one. Who can blame them as MSFT is worth $500 billion and makes up for a lot of duds in the portfolio.

Jonathan_Evans asks:

Your take on Gateway, has it already run up, and is it time to take money out and into one of your favorites Dell?

Creme_Delacramer:

Gateway is one of the stocks I sold today into strength. I want to buy it back on any weakness, and I think the company is doing very very well.

Captain__Stubing asks:

What stock do you think will be your best performer next year?

Creme_Delacramer:

Yhoo, Cisco or Nokia--one of those three. Or maybe Etrade.

CRAIG84111 asks:

What is your opinion on amzn stock?

Creme_Delacramer:

Amazon to me is a perpetual trade on the news. These guys love to issue news and it goes up every time they do. They are the most massively promotional company I have ever seen.

bryanb2000_2000 asks:

What is your opinion on the online brokers such as sch or egrp?

Creme_Delacramer:

I am very long EGRP and love it. I think schwab is less interesting up here but I liked it in the low 30s and said so in the site.

profitrader_2000 asks:

Are you a buyer of Texas Instruments with today's pull back?

Creme_Delacramer:

That's the one I have my eyes on. I will buy it down a couple tomorrow. It is one I let go when it hit 100.

mikesilverman asks:

PFE...hold? (long termer) or sell?

Creme_Delacramer:

I think you can hold it long term because they have a good pipeline, but this takeover thing is a big mess.

sctcom asks:

Head fake on the financials today or pre Y2k rally?

Creme_Delacramer:

I think they are done going down but that they are totally hostage to rates. If rates shoot up they will decline a bit more but if rates go down they will explode. They have an interesting risk reward but I am not as focused on them as I am technology.

thx09007 asks:

Jim, what do you think of Peapod?

Creme_Delacramer:

There are much better ones to own.

trader889 asks:

CNBC mentioned how hedge funds may sit December out because of the huge gains already booked, what's your take on that?

Creme_Delacramer:

I have to admit that I am one of those funds that is sorely tempted to do so.

InTheBlack71 asks:

Which do you like better ALTR or XLNX and why?

Creme_Delacramer:

XLNX today was a bit cautious in its presentation where as ALTR is a little more optimistic. I don't know if that is because XLNX just had a huge run. I do know these are both excellent companies and I would buy either on weakness.

napsneerg_nala asks:

How would you hedge a long position? Short something similar to it? Short the market? Buy a put option? Write some calls?

Creme_Delacramer:

Honestly, I don't do that. I don't hedge. I sell. I get rid of it. I don't want to put on a bunch of positions in reaction to other positions. I used to do that all of the time. It is not efficient and leaves you with too many situations to follow and I can follow a lot of situations.

futureboy2000 asks:

Jim, "Why Why Why" don't you own VONE?

Creme_Delacramer:

Because I don't don't don't want to.

lyncha00 asks:

Are ebrokers still dead money?

Creme_Delacramer:

No, I don't think so. I think they have a lot of upward revisions coming as business has gotten quite good.

hotbert asks:

When amzn, etoys... and a like show net loses on there huge rev's this xmas season, what will investors think? Or do they bother with evaluation and buy the hype?

Creme_Delacramer:

I think the market is still accepting of revenue growth for these companies as a proxy for performance, not earnings provided that the losses don't EXCEED expectations massively.

CruisinForGold asks:

Nok, was hit over the last three days. Do you see any buy on the dips in the Wireless Telecom Biz?

Creme_Delacramer:

I sure hope so. I am long it. I have to tell you that there were two reasons why Nokia got hit: a cancer scare from a report in ZDNET and the lock-up expiration for employees. I think that you will want to buy nokia tomorrow.

elmonorman asks:

How does the trading goddess view this market right now?

Creme_Delacramer:

She thinks it is out of control. She thinks that it is due for a rest, not a sharp fall off but a rest and she thinks it is going to happen right now. It is one of the reasons why I wrote today that I was taking things off the table -- she thinks it has gotten too easy. She is short-term very bearish.

stocksurfer62 asks:

Short/long-term opinion on Citigroup?

Creme_Delacramer:

C is one of the best financials out there. I am long Goldman but I think C can put on some very big numbers next year.

BillyMumphrey asks:

Do you expect a worldwide recovery next year, and a consequent boom for global consumer brands like Disney, Coke, Procter etc.?

Creme_Delacramer:

No, I don't see a boom for KO or DIS, in fact I think those stocks aren't that great, PG is doing fabulously and I buy it every pullback.

DONKEITH1 asks:

What do you think is the worst case scenario for a NASDAQ correction. Is it at all likely that this 85 pts is it?

Creme_Delacramer:

I think it would be realistic to expect another 2-3-4% but no more than that.

certenvser asks:

Great call on tv satuday - RedHots to Cool for a couple of weeks. Still same timeframe?

Creme_Delacramer:

Yep, I think they are going to sink a bit more--in fact as I write they should be posting a piece which says that very same thing.

horseman1021 asks:

Oxford Health Care (OXHP) a buy at these levels?

Creme_Delacramer:

OXHP--is a no for me.

profitrader_2000 asks:

What is your opinion of PeopleSoft?

Creme_Delacramer:

I think this is one of those companies that is not worth owning. I would much rather be in Epiphany, which is one of the companies I locked a profit in on, but expect I will revisit.

sirpukesalot asks:

You think MOT will keep going up next year?

Creme_Delacramer:

Yes, I think that it has gotten it together, sirbarfman!

tippsfile asks:

how old are you?

Creme_Delacramer:

I am 44 but I have the body of a 22 year old and a mind of a seven year old!!

mbajaj asks:

Jim what's your take on ANF (abercrombie) with all those class actions?

Creme_Delacramer:

I gave up on these guys. I hate it when someone has information selectively and this was one of the cases where some knew things and others didn't. so I want no parts of it.

kjl94587 asks:

I'm all cash now, (alot), what would you do and when?

Creme_Delacramer:

I think you should be using this pullback to put money to work. You have to buy stocks WHEN YOU CAN not when you have to. Take advantage of this weakness!

Pirategrrrrl asks:

Do you see a cyclical rotation out of some of the techs into some base materials stocks, such as chemical supplies or steels?

Creme_Delacramer:

I saw some of that today. As I said on the site I think it is totally bogus and you won't make a dime doing it.

Bkanoa asks:

What is your long term opinion of RFMD?

Creme_Delacramer:

I hear nothing but good things but I am not long.

stocksurfer62 asks:

Your 6 - 12 month take on Lucent?

Creme_Delacramer:

I remain long Lucent and think that it is going to be a big stock next year.

Lawrence_Stout asks:

Any favorite Asian net sector or telecommunications stocks?

Creme_Delacramer:

Holy cow--S&P just added YAHOO!!! ... You want a net stock over there, it is softbank.

das555 asks:

How about GNSS, a favorite of Kevin Landis? (techno-whiz).

Creme_Delacramer:

I can't cuff it, i don't know that one!!

jboblou asks:

Have you come across any dotcoms or b2b's that are nothing but hype and won't make it?

Creme_Delacramer:

I think you ought to look at the chat boards on our B2B section and you will get the feel for what we like and what we don't.

leald asks:

What stocks do the Cramer children own for the long term?

Creme_Delacramer:

Remember, my kids can't own stocks as I and my family are forbidden from owning individual stocks because it would conflict with my job as a hedge fund manager.

BillyMumphrey asks:

Which sectors will lead the recovery after this 'resting period'?

Creme_Delacramer:

I think that it will again be the Red Hots and the B2B companies. That is what the market wants. Also the semis and the networkers.

broadcom_will_be_225_by_y2k asks:

Jim, what will this yahoo news do? Right now 226 on Island.

Creme_Delacramer:

That is a bogus offering, the market is dicey, and too thin to know but I foresee it up ten on this news. Or more But remember I am very long Yahoo and even wrote as such today on the site when I said I was buying the stock down 14.

horseman1021 asks:

Rambus has pulled back some...now a buying opportunity?

Creme_Delacramer:

I don't care for rambus, too controversial.

biotechking asks:

You rarely write about shorts in your column. What Internet/Tech shorts do you like?

Creme_Delacramer:

I don't write about shorts because for the most part I am pretty bullish. I am short NO net stocks right now.

BillyMumphrey asks:

Will Citrix Systems become a software home run at these levels?

Creme_Delacramer:

I think you can't know the answer to that until you know what MSFT is going to do.

lufml72 asks:

Is a fourth rate hike now in the cards , and if yes for when ?

Creme_Delacramer:

I now think it is in the cards as I am astounded at how strong car sales and retail sales are. Just stunned.

TedLightbulb asks:

QCOM just going to keep going up?

Creme_Delacramer:

I think that it could pause, but there was a guy on our t.v. show that talked about it going to $500 and that seemed to make a lot of sense to me.

elsidster asks:

What stocks should my children have for the future?

Creme_Delacramer:

I think you want to be in the best on-line names and the best tech names such as SUNW and CSCO and YHOO.

hyperpumper asks:

Jim, what's your favorite investing book?

Creme_Delacramer:

I think the best book I have ever read was Anna Karennina, and I am a total lover of Tolstoi. I took a year of Tolstoi at school and still reread him when I can. I think he is the greatest writer who has ever lived.

jboblou asks:

Are Fleckenstein, Hickey, and Tice morons or just the product of unhappy childhoods?

Creme_Delacramer:

I can't speak for the last two but I am proud to call Fleck a friend and think he does excellent work. I think the best way to play china might be with global crossing.

KingLear44 asks:

What do you think about BLSW?

Creme_Delacramer:

I think this one could be the next epiphany. I wanted to buy it today it is very funny that you mentioned it. We passed on it because we think the correction has to run its course first.

mgshakes asks:

What about biotech? Any favourites?

Creme_Delacramer:

Oh, you know I like three of them: Millennium, Cor Thera and AMGN

joseph1900 asks:

If the Fed changes stance to a bias towards raising interest rates, will that shake the market?

Creme_Delacramer:

I think it will already be in the market. I think that is what this selloff is all about.

georun asks:

What do you think of retail stocks right now-WMT, etc.

Creme_Delacramer:

I own NO retail stocks. Not one. If I had to own them I would own: WMT, HD, KSS and DH.

TedLightbulb asks:

Hey I have been a subscriber to thestreet,com since you only had around 8,000 paid subscribers, how about a free t-shirt or something for me?

Creme_Delacramer:

Ted, you just click on my byline on the site and request it and lets see what happens!!

Sharp1025 asks:

Will Oil hit $30 a barrel this year?

Creme_Delacramer:

No, I don't think so. That would do real damage to the stock market.

FastActinTinactin asks:

What is the future of ATHM?

Creme_Delacramer:

Hey, fast actin, I think there are better fish to fry.

ezindown asks:

What's your take on the drubbing TLAB has taken lately?

Creme_Delacramer:

It seems unwarranted, they are doing many things right. But I watched my beloved Northern Tel get clubbed today so I would not take it personally.

chartool asks:

What your take on CNET?

Creme_Delacramer:

I think these guys are good business people. I do think they are spending rather recklessly though.

dlskh asks:

You seem to consistently mention SUNW, CSCO and YHOO these days but not AOL. Are you still as bullish on AOL as you've been in the past?

Creme_Delacramer:

Oh absolutely. If I haven't mentioned it as much it is my oversight and I apologize. I like it very much.

heleng_71107 asks:

When are they going to give your show an hour?

Creme_Delacramer:

Oh beats me. I gave up pushing.

vjmatthews asks:

Jim can we ask TSC to initiate coverage on a stock ?

Creme_Delacramer:

Not yet, we don't have that type of capability but I think we will soon enough. That is one of the projects that I believe in strongly.

Orlando_84 asks:

What are some on the new Internet retail sites this year that have a chance?

Creme_Delacramer:

I think this Ashford seems to have gained traction. At least according to Goldman Sachs.

wlpaul27 asks:

What do you think of AWRE?

Creme_Delacramer:

I used to love this one, courtesy of our excellent columnist Jim Seymour. I am out of touch with it right now though.

stefan1_reino1 asks:

You sleeping more these days?

Creme_Delacramer:

Nope. Got up at 3 a.m. this morning. My youngest daughter told me that I was making too much noise and that she was trying to get to sleep! What a crank!!

dgendler asks:

Is cable ever going to get off the starting line?

Creme_Delacramer:

I think that cable is going to be strong, although I like the dish market too.

dgendler asks:

Is Priceline for real?

Creme_Delacramer:

Oh, i don't know, I don't know. I debate this endlessly here. I just don't know ... Holy cow they are taking Yahoo at $233---!

joseph1900 asks:

Would you be nibbling on some Airline stocks or does oil go higher from here?

Creme_Delacramer:

I think these stocks seem cheap but that this market hates cheap and I would avoid them.

Lawrence_Stout asks:

Any thoughts on financial stocks, particularly Wells Fargo & Washington Mutual?

Creme_Delacramer:

Wells is doing well . I don't think WAMU is and I don't want to be long it because of the shape of the yield curve. If I had to own a bank I would own Citi or chase.

Pirategrrrrl asks:

Do you have any DSL related favorites. I own Tolgrade (TLGD), do you have an opinion?

Creme_Delacramer:

I have sold all of those stocks and think there are better plays.

hyperpumper asks:

Is ebay for real?

Creme_Delacramer:

I think that EBAY is very for real but it is too high.

atroopan asks:

Are you just as scared as me that one day one of your long positions will be mentioned in Herb's column in the morning ?

Creme_Delacramer:

Nah, he has done it so many times I can't worry about it any more! Herb is the best and he has hurt me but his column has saved me a fortune!!

jawari2000 asks:

How about answering one of my questions? Opinion on ADBE

Creme_Delacramer:

Here is one I missed and continue to miss and it drives me crazy. I didn't see the turn and I keep thinking it will come down big and let me in and it doesn't.

vn35 asks:

Jim, what are the 5 stocks to hold for 3 years ?

Creme_Delacramer:

I still think the best bets are stocks like Yahoo, AOL, CSCO SUNW and Nokia.

beech1997 asks:

Jim- Can the Knicks make the playoffs again

Creme_Delacramer:

Sure, they just have to get healthier.

georun asks:

Do you still like HWP?

Creme_Delacramer:

Very much so but it has a big run up to 98. On any pullback I will buy more (I am long it).

stefan1_reino1 asks:

Latest on AAPL?

Creme_Delacramer:

I made 20 points on this, felt like a genius and now I feel like an idiot. It keeps going higher and higher and higher.

stefan1_reino1 asks:

Is MSFT moving higher with Win2000?

Creme_Delacramer:

No, it is moving higher off of the meetings with the judge. I don't know what will happen though.

poopanugget asks:

What are your stocks to hold for 3 months?

Creme_Delacramer:

I think you should check out our B2B draft picks, those are the ones for the next three months.

formula106 asks:

If Warren Buffet, P. Lynch and Benj Graham are out, who's in?

Creme_Delacramer:

I think that the people who are in are people like Tim Koogle and John Chambers and Bob Pittman and Carly Fiorina -- the managers are sideshows.

beech1997 asks:

JJC- Will broadband kill off TV networks such as CBS and NBC?

Creme_Delacramer:

I don't think so, not in any time within the investible horizon.

ksamff asks:

How would you build a new position in YHOO if you didn't own any.... which I obviously don't...

Creme_Delacramer:

Oh boy, that is tough because I think that this S&P 500 hoopla will put it out of reach for a while!!

dgarcia801 asks:

SFE PLEASE....PLEASE

Creme_Delacramer:

Nope, rather be in MOT Sorry, I thought you did SFA--I would rather be in ICGE!!

hyperpumper asks:

When is @home bouncing back?

Creme_Delacramer:

I am not a fan so I would not know.

Jonathan_Evans asks:

Jets or Giants?

Creme_Delacramer:

I am a big believer that the Giants are on the way down but that they will win this weekend.

elsidster asks:

What are your favorite bank stocks for the next 12 months?

Creme_Delacramer:

I like C, Goldman (which I am long) Chase and Wells Fargo.

hyperpumper asks:

Jim, why does GO.com keep sinking?

Creme_Delacramer:

Beats me, really, I don't know why.

po_boy_25m asks:

You went into October with a lot of cash, if I recall correctly. How much cash, as a %, do you like to have this time of year?

Creme_Delacramer:

I like to have oodles! As I said I am looking to lock in a good year and I can't afford to give it back, I will be the goat of the game! ... Thanks Lisa and thanks to all of the good folk at Yahoo--this is our 2nd year anniversary of doing these things and I love them. I love them like Squawk!~!~

ChatYahoo_Lisa:

Thanks for joining us Jim!