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 Sprint's resurgence is for real;
  • how to invest in the oil patch; and
  • why people are wrong to write off retail.

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

Make a Dash for Sprint

Posted at 7:17 a.m. EDT on Friday, Aug. 10

Why do people spend so much time talking about Research In Motion ( RIMM), Nokia ( NOK) and Yahoo! ( YHOO)? Why?

And why don't they spend more time talking about Sprint ( S)?

I have no idea how the turn will go at Yahoo! I do know that it will not be a quarter or two turn. Maybe three? Perhaps four. The company has no mobile, social or cloud strategy. Until it does, I think you've got some real flatlined time on your hands.

Research In Motion? That's only about takeover. You have 70 million subscribers and a good keyboard, but it is a closed ecosystem so you are buying a list and some patents and an enterprise services business. That list is way too expensive for almost all companies, although the keyboard patents have real value and we have rumors right now that IBM ( IBM) wants the enterprise service business. One would have to hope that the enterprise services business, like the patents, are worth so much that this could be a positive situation, like AOL ( AOL), and not a negative one, like Kodak.

Still, I would not recommend a stock just on its parts valuation when the fundamentals are horrendous and the spiral down in cash has just begun. That's too dangerous.

Nokia's only interesting to people because of its low-dollar price tag. If it were to do a 10-for-1 one reverse split no one would touch it.

But Sprint? Here's a company that generates a huge amount of cash flow that needs to raise cash and can now do so, which will dramatically lower its interest charges in a way that is certainly profoundly positive. RIMM and NOK are in vicious cycles down; Sprint's in the virtuous cycle up.

Many had doubted whether Sprint could ever recover from the phenomenally terrible Nextel acquisition. The transition out of that technology and into Sprint's was supposed to be too difficult. But CEO Dan Hesse has pulled it off and is keeping far more subscribers than I thought possible.

Of course the stock has run from $2 to almost $5. But that's what is going to happen when you take bankruptcy off the table and you go from horribly unprofitable to cash flow positive.

Can it keep rallying? I think yes. I would like if the stock were to take a breather here. It seems like too quick a run. But I think that it is still worth buying if you recognize that it could trade down to $4 and change on a couple of bad days.

Sprint's for real. Yahoo!'s wait and see. The others? Nokia may one day turn it around, but it might not ever happen. Research In Motion? You are simply trading around the rumors of a stock that I believe will go lower when it reports.

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

Where to Look in Oil Services

Posted at 12:12 p.m. EDT on Thursday, Aug. 9

Consolidation in the oil patch has been a constant theme. It makes a ton of sense, too, given that there are so many players in the business and there's much to be made by merging.

When National Oilwell Varco ( NOV) buys Robbins & Meyers ( RBN), a company that has specialized in fluids management needed for drilling, we shouldn't be surprised that the acquirer's stock jumps on the news, despite paying $2.5 billion more than a 25% premium to yesterday's closing price.

National Oilwell Varco is an integral portion of the drilling revolution in this country. It manufacturers the best state-of-the-art equipment and has been trying to get a bigger share of the whole drilling process, hence the bid for Robbins & Meyers. This acquisition gives National Oilwell Varco a chance to become more of a soup-to-nuts proposition for oil service companies. It's immediately accretive, allowing NOV to raise estimates by as much as 25 to 30 cents next year, even as it seemed like they paid a huge amount for the target. Obviously they got a bargain.

That acquisition has immediately spurred big increases in the prices for Gardner Denver ( GDI) and Lufkin ( LUFK), two component players that are viewed as potential takeout targets because they, too, would help round out any service company's portfolio. They have valuable niches, Gardner Denver in material handling and Lufkin in field pumping units, the donkeys you see going up and down and up and down once a well is completed.

While these targets make sense and seem cheap, as both are down about 20% for the year, the fundamentals of these stocks are mixed, to say the least, with each company having to cut its forecast rather dramatically just within the last few weeks.

I can also see Weatherford International ( WFT), another oil service company, catching an acquisition rumor or two. It's got a solid franchise in Iraq, which is now pumping 3 million barrels of oil a day and has been very undermanaged, to be kind about it. The stock's down 11% for the year and has also repeatedly failed to live up to expectations plus it's had its fair share of accounting problems.

To me, while I do expect more consolidation, trying to catch the next takeover is a fool's errand. Buying companies with declining fundamentals, is a recipe for losing money. What makes more sense? I would be buying oil service king Schlumberger ( SLB), which has just told you that it's doing very well and has a positive outlook, in part because it's not hostage to the misfortunes of natural gas drilling in this country, makes so much more sense. With oil looking like it has bottomed, with drilling budgets globally on the increase and with a management team that has been second to none, Schlumberger can have a multiyear rally, which is why we have been buying it for my charitable trust, ActionAlerts Plus.

I always like to pay up for best of breed rather than hope that lightning strikes with a takeover. If you ask oil service company managements what company they think is the best run in the patch, they will invariably say Schlumberger. That, and not a company that has failed to meet expectations, makes much more sense to buy as we watch oil work its way back to $100 dollars a barrel.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long SLB.

The Amazing Sector of Retail

Posted at 2:01 p.m. EDT on Wednesday, Aug. 8.

When are people going to stop writing off retail?

Not that long ago people sold Macy's ( M) down to $32 on what amounted to a decent quarter and good guidance. It just meant nothing to them. Seemed like people just gave up on the department store chain. Today, it gave you a good number, good guidance and it is now six points above where it was when it gave you a good number and good guidance!

Remember how furious people were with that last Bed, Bath & Beyond ( BBBY) quarter? While the stock's still down 10 points from its high before it reported, it's now up five points from the low and seems to be gathering strength.

Ralph Lauren ( RL) just had a remarkable intraday 9-point run as if things are better than expected, not worse than expected. Home Depot ( HD) and Wal-Mart ( WMT) won't quit, the last one being just a monster.

People were upset about Disney ( DIS) initially, but when you think about how much people are spending at theme parks you know that the negativists just didn't get the robust nature of the theme park visitors, something we have seen from Six Flags ( SIX), Cedar Fair ( FUN) and, yes, Universal, which is owned by Comcast ( CMCSA), my other job.

There's just tremendous momentum in all retail -- witness the Market Vectors Retail ( RTH) -- and I think that people just keep underestimating the group.

Next time we get a downturn, remember how quickly they come back. OK, not everything can bounce like Ralph Lauren, but this group's strength is just plain amazing.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long Disney.

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