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:
- why Netflix will get a big boost when some other Internet companies go public;
- three areas of the markets where investors have made money; and
- why Moody's is a winning investment, despite its poor ratings record.
for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
The Newbie Effect
Posted at 2:59 p.m. EDT on Friday, April 29.
One of the reasons why I endlessly talk about how I don't think you should leave
is because of what happens when a
comes public. Netflix could power much higher because I suspect these newbie companies will have much bigger market capitalizations than Netflix, even as Netflix has a terrific and fast-growing subscription business. That's almost impossible to have as most subscription businesses just creep along in low- to mid-single-digit growth.
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Oh, and forget about where Netflix will go if
goes public -- to the moon, Alice!
Now take a look at
. They are both ramping and I think can continue to ramp because
will come public and this is the Facebook to BIDU's
and SINA's Twitter.
Renren is the big social online platform with more than 100 million customers and growing like a weed, although not as fast as SINA. The company's got a terrific online advertising business and more than a 130% top line compound annual growth rate. Stupendous.
It will be the rising tide that lifts all Chinese Internet-related boats.
I would hold on to BIDU, which just reported a terrific quarter, and I would stay in SINA, even though a week ago Goldman Sachs downgraded it to Sell.
You want to sell these? Wait until Renren comes public. Then you can take a hard look at taking profits.
At the time of publication, Cramer had no positions in any of the stocks mentioned.
Three Ways to Win
Posted at 10:17 a.m. EDT on Thursday, April 28.
Ways to win. How many ways to win. That's how I always liked to look at the casino of stocks when I was a hedge fund manager. How many different tables offer good odds where, if you work hard, you can make some real money. "Work hard" is a subjective term at the casino, but anyone who plays blackjack as I do knows that if you focus, you can beat the dealer.
How are people beating the dealer today? Let's count the ways:
Takeovers. Constellation Energy is a total dog. I don't know if the local authorities will block this Exelon deal, but still, it is a huge win for shareholders. At the same time, there are new bidders for BJ's Wholesale Club , namely Apollo Management, the private-equity firm, and that drives that price tags up. These are all on top of the CenturyLink bid for Savvis and the Johnson & Johnson bid for Synthes. Both deals could have been smoked out, because the media had endlessly told you they were targets.
Earnings are fantastic, as a ratio: Norfolk Southern sets the tone with the following statement: "The veil of uncertainty we felt this time last year has been removed." Just a huge number of upside surprises occurring today. Baidu , Fortinet (a Bryan Ashenberg favorite), Citrix , are far more the rule, with Akamai the exception. I say this is a "way to win" because if you consider the sequence, say, of the HMOs, you get what I mean. UnitedHealth Group reports a terrific quarter and the group goes up. Then WellPoint does it, and the group goes up again. And then Aetna reports today, and it does it again!
The precious metals don't want to quit. I know that they seem like nosebleed -- and I am worried about the incessant margin buying of silver -- but you have to admit there's been a huge amount of money made at this casino table.
There are many others. I am simply talking about the "obvious" tables, where the customer is allowed to win fairly easily as long as he or she isn't thrown off the scent by these macro concerns that everyone else keeps focusing on. The macro smokescreen is really obscuring the micro table winning. Don't get lost in it -- just find the right tables and start betting!
At the time of publication, Cramer was long WLP.
Moody's Wins, Right or Wrong -- Mostly Wrong
Posted at 10:36 a.m. EDT on Wednesday, April 27.
How would you like to be in a business where you can be wrong, dead wrong, literally for hundreds of billions of dollars, and still have terrific earnings? How would you like to be running a company that, if it makes mistakes that almost bankrupt the financial system, gets protected from these mistakes by the right of free speech?
How would you like to be in a business where you get paid by customers who buy
sell merchandise, and there's only one serious competitor that charges the same price as you?
The answer is, you would kill to be in it, and that's why
is just such an amazing company. This company and Standard & Poor's, which is owned by
, are coining money because of the huge debt issuance. And although they pretty much rubber-stamped many of the trillions of dollars in bonds that are now worth nothing or worth so little that you can't even look at them, their reputation is not only untarnished. Judging by today's numbers, their reputations have actually been enhanced.
Moody's is the rare player in this era that has been able to increase margins and boost business as if it were a pick and pan company during a gold rush. Not only that, I believe that bond issuance could only go higher, as it looks like the
has to raise rates, and you want to get in before the big increases. Sure, lots of debt has
been issued, but we are just now reigniting the asset-backed market that was destroyed by merchandise that was highly rated by Moody's that turned out to be total junk. When that market booms, buyers and sellers will look to Moody's for approval. It will give it. There's nobody else new that anyone can go to.
So the company is set up to make even more money.
At the time of publication, Cramer had no positions in stocks mentioned.
Jim Cramer, founder 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.