Jim Cramer's Best Blogs

NEW YORK ( TheStreet) -- Jim Cramer fills his blog on RealMoney 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 Greece turned out better than expected;
  • why Cummins keeps on truckin'; and
  • why you should own shares of Apple.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

Impressed by the Bounceback

Posted at 6:45 p.m. EST on Friday, March 9.

Better than we thought. That's how I look at Greece. It worked out better than we thought it would a week ago. Yet, I still found it odd that the stock market could sell off on the obvious triggering of the credit default swaps that ISDA declared late in the day.

Truly, could this have been a surprise to anyone?

Yet, this decision hammered all of the big cyclicals, such as Cummins ( CMI) and Joy Global ( JOY), the companies that need credit to sell their wares.

I think that what Greece did was terrible for bondholders. But selling Cummins or Joy ahead of what might be a Chinese rate cut seems pretty stupid. I was glad the selling didn't extend to the banks themselves as some sort of "Who's exposed" game, because that's been played out a gazillion times already.

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Overall, you have to be impressed by the bounceback we saw this week. You could have taken the market down today on the idea that February's job growth had declined from January. You could have taken it down on the collapse back to $130 in the Rydex CurrencyShares Euro ( FXE). You could have taken it down by the persistence of Brent's strength.

The simple truth, though, is that they couldn't take it down, and, although I remain concerned that gasoline is the Achilles' heel of this market, I came away this week with worries about being too cautious given that so many things worked out right today.

High-quality problem.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Cummins Has Navistar Beat

Posted at 12:21 p.m. EST on Thursday, March 8.

It was the best of truck makers, it was the worst of truck makers. Excuse me for appropriating Charles Dickens' A Tale of Two Cities, but that's how I feel after reading today about the hideous quarter of Navistar ( NAV) and comparing it to the blowout quarter its principal competitor Cummins ( CMI) reported a month ago.

You can't talk enough about execution in this business, particularly if you are a global manufacturer, because some companies have it and others don't. Cummins has it. The company has a golden touch, taking advantage of the latest technology and building foolproof engines that are the envy of the world.

But Navistar? A lot of the huge miss this morning, a staggering $153 million loss, or $2.19 per share, was from warranties and recalls. Without one-time charges, the company reported a still-horrendous loss of $2.08 per share, when Wall Street was looking for a $27 cent loss per share. The company had to recall 19,000 buses and trucks because of faulty brakes made by a supplier. Of course, that loss is on Navistar, as it should be. The warranty losses of $112 million stemmed from engines manufactured between 2006 and 2008.

As pathetic as those charges were, analysts were astounded that the company cut its guidance, set just last month from $5.75 to a range of $4.75 to $5.25. Talk about not being in control of the situation.

Contrast that with Cummins, which recorded a remarkable quarter last month with sales up 19% and earnings coming in at $2.56 when the street was looking for just $2.24. Cummins is taking share and riding high on the huge increase in trucks being ordered worldwide, particularly in China.

I have been saying all year that 2012 has become the year of the stock-picker. Nothing drums home that point more than the disparity between these two companies. It's difficult for all of us to be qualitative in this market. We tend to look at earnings per share and growth rates when we compare companies. Sometimes, though, it all comes down to management. In this case, Navistar just doesn't have it together, while Cummins is raking it in.

I think Cummins stock may be up too much for the moment to buy it off this disparity. The stock wrongly trades off Chinese growth, and when China lowered the growth boom Sunday, the stock shed seven points before bouncing back.

It's important to remember that in this tape, when you want to play a theme like the global growth of trucking, you must play it with the best of breed, even if it is the most expensive. Sure, Navistar's a lot cheaper than Cummins. But then again, it deserves to be.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Don't Trade Apple. Own It.

Posted at 11:39 a.m. EST on Wednesday, March 7.

Will people buy Apple's ( AAPL) iPad 3, and will sales be good enough to propel the stock even higher? Talk about a half-a-trillion-dollar question.

I think they will because we are headed into a world where there's a chicken in every pot and an iPad in the hands of every man, woman and child.

Apple's been working like mad to crack into the enterprise, the big business that is desktop and laptop PCs. Judging by the specs of this device, it has the power and the smarts to unseat the laptop and the desktop.

More important, it fits into an ecosystem that includes your phone at the very same time that Research In Motion ( RIMM) is going the way of Nokia ( NOK), meaning riding into the sunset for the corporation the way Nokia rode into the sunset for the consumer.

More important, though, may be the man, woman and child aspect of Apple's iPad strategy. USA Today, which writes more on and is more informed about the company than the rest of mainstream press, has a terrific article today about how iPads are being passed down to kids so that new iterations can be bought by their parents. I'll go a step further and say that kids are going to have to get iPads to supplant textbooks, so if no one has an iPad in the house, the kids are going to get them for school. Then the parents will fall in love with them, which, by the way, was the progression for the original iPod, where kids drove the sales and then parents joined in.

Now, can you play Apple the stock, meaning buy the stock because of the iPad 3?

We had a predictable pattern with Apple going back years: Buy the run-up to the product introduction and then sell the "Ooh and Aah" of the actual release.

That pattern was broken by the iPhone 4s, which was viewed as disappointing, and you didn't even get much of a run-up either. That changed when people finally started realizing that the 4s was revolutionary because of voice-activated assistant Siri and not evolutionary because it was only a 4s and not an iPhone 5.

While Apple's had a good run, I am not sure I expect as much selling as before, if only because demand is so tremendous for this product.

In other words, don't trade Apple. Own it. It's still cheap on earnings. It still has the destructive tidal wave in its favor. The only thing it has against it might be that there could be fatigue over its relentless rise.

That, however, is not enough to cause a huge drop from here, so the expected buying opportunity dip might not occur without an exogenous event that takes down the whole market.

The iPad 3 will be a success. The stock's still cheap. I would be a holder not a seller.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.