"It just keeps getting better and better for the bulls," Jim Cramer said at the start of his "Mad Money" TV show Thursday. "But," he continued, "the market is way overbought, and it's time to take some profits." Cramer said after 12 positive days on the Nasdaq, it's time for investors to take a step back and lock in some gains. He said there will better opportunities to buy back into the markets in the coming days, but tomorrow will not likely be one of them.
A Slow RecoveryCramer spoke with Dan DiMicco, president and CEO of Nucor ( NUE), to discuss the company's better-than-expected, but still lackluster quarterly results, and the overall outlook for an economic recovery. DiMicco said the key issue for Nucor, and the steel industry overall, is the health of the economy. He expressed fears of a very slow recoveryf us. When asked about the current quarter, DiMicco said that the real demand for steel hasn't improved. Instead he noted that wholesalers have reduced their inventory to near 1983 levels. He added they are finally buying steel to meet their needs, rather than continuing to draw on existing inventory. DiMicco said that Nucor has not laid off a single employee because it converting many full-time workers to part-time until demand picks up. He said that the employees have been instrumental in dramatically reducing other costs. DiMicco offered words of caution, as he compared this recession, which includes the worst job loss ever, to other recent recessions. He said with the trend continuing toward longer and longer jobless recoveries, it make take a very long time to recover. Cramer said he's still a believer in DiMicco and Nucor, and would be a buyer under $40 a share.
Unloading PalmIn Thursday's "Sell Block" segment, Cramer said it's time to take profits and sell Palm ( PALM). He said there's only one king of the smartphone market, and that's Apple ( AAPL). Cramer said when it comes to Apple versus Palm, you simply cannot compare the two companies. He said a few months ago that Palm's stock was left for dead, and was only saved by its introduction of its "Pre" smartphone. But now a month after the Pre's release, criticism is mounting, and rumors abound about high return rates for the device. With Palm stock up a staggering 360% for the year, Cramer said the trade is over in Palm. He said ever since the introduction of the Pre, Palm's stock has been slipping, a trend that's likely to continue. Cramer said Apple is the only stock to consider in the smartphone arena. The iPhone, with its iTunes and hugely successful app store, make it the king of the castle, said Cramer. Palm, he said, has run its course.