- 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.
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. > > Bull or Bear? Vote in Our Poll 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.
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.