Beware the whispers on Wall Street, Jim Cramer cautioned viewers of his "Mad Money" TV show on Thursday. He said that while whispers and rumors have become an integral part of Wall Street, lately they've just been dead wrong. Case in point, ConocoPhillips ( COP), a stock that Cramer owns for his charitable trust,
Don't Disrespect the Earners"Are the markets totally crazy," asked Cramer? Why is it the consistent earners are now hated on Wall Street, he continued. Cramer looked at two Ohio-based stocks to find out the answer. Cramer looked at aerospace parts supplier Parker Hannifin ( PH) and consumer products giant Procter & Gamble ( PG). Cramer said Parker Hannifin missed estimates when it reported last week, yet this stock continues to trend higher, while fellow Ohioan Procter & Gamble, is expected to report great results next week, but that stock is weakening. Cramer said the answer to this conundrum is simple, and it has nothing to do with the stocks themselves. He explained that the big-money managers are moving their money, en masse, from the conservative stocks into those that can provide growth from here on out. This sector rotation, he said, will punish any stock that can't provide growth while rewarding those that even have the potential for growth. In the case of Parker Hannifin, Cramer said the markets are expecting a rebound in aerospace next year. Given the capital-intensive nature of Hannifin, this expected pickup in business will be huge for its bottom line. Procter & Gamble, on the other hand, has little hopes of growing beyond the slow and steady pace it's known for. The markets favor monumental earnings growth, said Cramer, and that's Parker Hannifin.
'Sell Block'In the Thursday "Sell Block" Segment, Cramer deferred to his colleague Doug Kass at TheStreet.com, who says it's time to sell.