Why Berko's Getting Fan Mail

Cramer says his partner's got the mental horsepower to make the right call.
Author:
Publish date:

My partner,

Jeff Berkowitz

, now has the fan mail to prove his stardom. More important, he has the mental horsepower to make his stardom worth noting.

So when I tell you that I want to buy something and Berko says, "That's not so hot," I don't dismiss it out of hand.

Take this morning. I love

Time Warner

(TWX)

and wanted to buy it on the dip. But Berko immediately pointed out that buying stocks on number-cut-inspired dips, as opposed to internal rotations or sloppy selling, can just be killer.

The

Merrill Lynch

Time Warner cut was steep. Other analysts will have to follow. There are clients who are on vacation. They may still have to take action when they come back. The company itself is not denying the cuts.

I am pretty sure the stock will bounce here. I figure that at a certain point the cuts are in the stock. But I am staying away because I like Berko's analysis.

Random musings

:

CNBC

correction department: The upgrades of

Dell

(DELL) - Get Report

and

Cisco

(CSCO) - Get Report

just now were technical in nature, despite what you heard on the stupid tube. I wish they were more than that; I am long them. But I value facts more than money.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco and Dell. 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.