When investors look at a down market they are looking to buy stock, Jim Cramer said on his
"RealMoney" radio show Wednesday.
Maurice "Hank" Greenberg is one investor in particular who's been buying a lot of
New York Times
Anyone who thinks they can pressure the company to do anything, including selling the Times is "out of their minds," Cramer said. The
New York Times
"is a classic journalistic institution," which has two classes of stock, he went on to say. While the A class is owned by you, the B class is owned by the company's management and family.
"The main reason the company has two classes of stock is to stop just the kind of maneuvering that is being done now to get the Times to do something to make itself more profitable," Cramer said. "So, why try to force a takeover when you can't?"
By having two classes of stock the Times is more like "a private institution masquerading as a public stock," he said. Therefore, although Cramer said he loves reading the
, he believes Greenberg would make more money owning a university, such as Yale or Vassar.
Cramer urged his listeners to use the news of Greenberg buying stock to get out of New York Times.
Moving on to
, he said the decision for the newspaper's sale to be extended is "an acknowledgement that the cash flow from newspapers may be on the wane."
Anyone who wants Tribune only wants the company's TV stations and the Chicago Cubs, Cramer said, adding he believes the real problem is figuring out what to do with the newspapers and whether they can be offloaded on rich people.
"The private equity guys will ditch the papers fast, bring TV public quickly and sell the Cubs for much more than Tribune would know how to," he said. "In the end, Tribune's lack of savvy, including its stupid, highly leveraged buyback, coupled with the shrewdness of the private equity guys, will allow Tribune to be sold."
BUD's Good Brew
announced that, contrary to what people were saying, the company is not in decline, Cramer said.
Cramer said he was consequently struck at how positive the news was and the better-than-expected numbers the company talked about.
But then he read a business brief in
The Wall Street Journal
this morning which discussed the company's decline in international brewing because of problems in the U.K. However, after continuing through the paper, Cramer said he came across a story about how Anheuser-Busch stock went up 75 cents because it reiterated its long-term target for growth in earnings per share.
The stock is being hurt today because of the negative article, "but it is wrong," he stressed. The article warns of profit fall, but after doing your homework, you may find that this is not true, Cramer said.
"Buy it today, the press got it wrong," he said.
Another "bogus perception" going around is that
doesn't know what it's doing, Cramer said.
While market players think it's spending too much money supporting its wireless business and is moving too slowly, he said he does not believe this is true.
"Verizon is a low-risk stock to play some really terrific stuff," Cramer said.
First, its new mobile deal with
will allow kids to send YouTube videos to each other immediately and should be popular. Second, it has a great ringtone downloading business and a "terrific" dividend, he said.
"Verizon has a lot of places to win," Cramer said, urging people to take a hard look at it. "It represents a pretty good buy here."
Speaking of Bogus...
There are also several "bogus" explanations as to why there have been selloffs in the market recently, he continued, one of which is that oil is going up and could be hurting the market.
However, oil is up even more today and the market is rallying, Cramer said. "All these excuses are painful and wrong."
Rather, he believes there were several large hedge funds that engaged in an "incredible amount of shorting."
is up $2 today, but the word on the Street was that Japan, which is a big business for Tiffany, had gotten weaker. Therefore, on Monday a lot of hedge funds decided to go negative on it and sure enough, the Japan-based business was weak.
However, the U.S. business was so strong it offset the company's Japan-based business and now there is a "remarkable surge" in the market.
Move on Mcgraw-Hill
is a "phenomenal" diversified stock, Jim Cramer told a caller.
He said it has the "best business model of any media company," and a great handle on the rating of bonds. Even up to nearly $67, Cramer recommends buying it.
When a caller asked about
, Cramer said if the company is smart it will refinance its high-coupon debt and make its shareholders a lot of money.
But as much as he finds Charter interesting, he believes a better play in this area is
Level 3 Communications
Responding to another caller, Cramer said although he regards
to be a good company, he cannot recommend it because there are two stocks he believes are more worth owning.
First, there is
Johnson & Johnson
, which he owns for his charitable trust,
Action Alerts PLUS, Cramer told the caller.
He called it a "fantastic story," which has been wrongly beaten down because of bad stories about its stent business.
The other stock is
, which he also owns for his charitable trust,
Action Alerts PLUS.
He called the company's CEO Fred Hassan a "bankable guy," who is turning Schering-Plough around "brick-by-brick."
When a caller inquired about
Companhia Vale do Rio
, Cramer told people to not even think about selling this stock.
"Don't sell it here," he said. "It is too darn cheap."
At the time of publication, Cramer was long Johnson & Johnson and Schering-Plough.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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