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:
  • EOG's success;
  • why gauging Aeropostale and Abercrombie & Fitch is as impossible as understanding your teenager; and
  • why some recent "bad" news on widely watched companies hasn't been that bad.

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

What a Good Stock Looks Like

Posted at 10:49 a.m. EDT on Friday, Aug. 3

Can we stipulate that this is a ridiculous market? Our payroll numbers weren't so strong as to warrant this rally. The Europeans are doing nothing. China's hopium.

But it doesn't matter. The signals are all clear even for stuff of which it shouldn't be all clear.

Except for EOG ( EOG). When it comes down to it, after these conference calls, only one company has been able to turn itself into an oil company from a natural gas company, and that's EOG. Today it is getting its due.

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Don't get me wrong. The nat gas companies that are going oil are too cheap. The charitable trust bought Devon ( DVN), which is ridiculously cheap, even stupidly so.

But EOG is much much further along and is going for being a full-fledged oil player with the best Bakken and Eagleford properties. He's got monster finds.

The amazing thing about the journey of EOG is that it wasn't from natural gas to nat gas liquids, although it doesn't mind those. It's natural gas to oil. The other guys are taking the interim step, and it is killing them.

It's good to see what a real oil company can do. It can coin money. No wonder we are getting this fabulous move helped by higher oil prices.

And I don't think it is done, although I will say that the third-day move in EOG, after Monday, has usually been a better entry point when it spikes like this.

Good stock to have on a very good day.

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

Teen Retail Is Unknowable

Posted at 11:19 a.m. EDT on Thursday, Aug. 2

Do you have teens? I do. Have you ever, ever been able to figure what they wanted from minute to minute, let alone from month to month.

Yet people keep thinking that they can be gamed. I am constantly being bombarded by people saying, "Isn't this the month that Abercrombie & Fitch ( ANF) will turn around? Or isn't True Religion ( TRLG) down enough? Isn't this the moment for Aeropostale ( ARO)?"

To which I say, "It is no more the moment than when my daughter says to me in the last week of May 'I hate what Hollister (that's Abercrombie) has in its stores,' one month after she asks me for a birthday present from there."

Obviously my 18-year-old knows best or is at least unknowable because the numbers for Aerospostale and Abercrombie & Fitch are amazingly bad and the stocks have been crushed. As they should be, given how, like True Religion, they have missed the market. Of course Abercrombie's and True Religion's problems are complicated by the fact that they actually have a lot of Europe exposure, and in ANF's case, numbers are down more than 20%.

Meanwhile, we know exactly what we can gauge, and that's management that knows its customers and consistently offers product they want. That's why we should be gravitating to stocks like Macy's ( M) and Gap ( GPS), or Ross Stores ( ROST) and Costco ( COST), which have their customers down to a T, or even a T-shirt, and aren't dice rolling a fickle consumer from month to month.

You want higher risk with a higher reward you can go to Amazon.com ( AMZN), which doesn't even need to know what investors want because it has no inventory to begin with.

Or, you can look at it another way. Not that long ago J.Crew went private in part because the company was never going to get credit from Wall Street for its fabulous innovation and its willingness to take risks. I don't blame them. Two years ago I told my daughter about how amazing Madewell, which has a ton of teen apparel, was doing and that she simply had to go in and see what they were doing. The next day she told me that it was hideous.

A few months later I asked her what she wanted for the holidays. Simple, she said, she wanted a gigantic gift certificate to Madewell because the stuff was so cool and everyone was wearing it. When I reminded her what she had said not that long ago about Madewell, she looked at me like I was from Mars and told me I had no idea what I was talking about.

And you wonder why Mickey Drexler took the company private. Abercrombie & Fitch and Aeropostale are still publicly traded. It's just that they shouldn't be publicly traded by you. Some businesses are simply unknowable. Others are consistent and can be bought on any weakness.

Suffice it to say I have no idea whether the weakness for ANF and ARO is going to continue or if this is the opportunity you have been looking for. The problem is, neither does management. So you can't fathom them either. Don't even bother to try.

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

Bad -- But Not That Bad

Posted at 10:48 a.m. EDT on Wednesday, Aug. 1

Disappointing -- but not as disappointing as we thought. That's the prevailing theme behind some of the moves we've seen lately -- and the moves, acerbated by the thin nature of the market, can take your breath away.

Take the miss by Allergan ( AGN). As soon as the report came out, the services that comment on earnings vs. expectations put out bulletins saying it was worse than expected. But the more important takeaway was that, although it was worse than expected, it wasn't much worse than expected, so the stock actually rallied on the news.

Same deal with Electronic Arts ( EA). The quarter looked terrible. We learned for certain that the key Star Wars launch was a bust. But it wasn't so much of a bust that it caused people to avert their eyes and sell. The announced buyback cushioned the disappointment, which wasn't that disappointing. So, we got a rally.

We saw this yesterday with Cummins ( CMI), too. It was certainly worse than expected with a dramatic slowdown in North American orders, but it wasn't dramatic enough to knock the stock down further, therefore it rallied.

And we saw it in Apple ( AAPL), which just keeps being propelled higher and is now higher than when it reported. In part, it's because others seem to be faltering, notably Google ( GOOG), and partly because the launch of the new iPhone is coming and we know from the monster build at Cirrus Logic ( CRUS), the audio supplier to Apple, that Apple senses gigantic demand.

Bad -- but not so bad as to make people sell.

So why not buy? Because if it is bad but not so disappointing, then the shorts have to cover and the longs smell a bottom. That's the dominant and absurd theme of this week's trading.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long AAPL at the time of publication.

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