- bad-news banks and
- the oil stock price crash
Bad-News Banks Breaking Training Posted at 11:07 a.m. EDT on Friday, Nov. 15 It's been a long time since the banks have been able to shake off bad news and go higher. Today's one of those days. They got these ridiculous Moody's downgrades and, at last, they meant nothing. You have the Attorney General of the United States talking about coming down on the currency manipulators, which could lead to all new investigations of money centers -- will they ever cease? -- and they meant nothing. These stocks are all trading higher, in part, I think, because we are going to get a little inflection in the yield curve and in part because they are just too cheap relative to other stocks. It's very in vogue to talk about bubbles, but is it a bubble to mention that Bank of America ( BAC) isn't back to where it was in May 2010? Isn't that a little nuts? How about Citigroup ( C) unable to take out its 2009 top? WFC), for Action Alerts PLUS and would buy more JPMorgan Chase ( JPM), if it would come down. Meanwhile, there is some research on KeyCorp ( KEY), raising the price target to $15. Seems like a reasonable stretch given the turn we are seeing in bad loans, in the yield curve and the return of growth in the Midwest. Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long JPM, WFC and KEY.
Oil Stocks Getting Killed Posted at 2:40 p.m. EDT on Tuesday, Nov. 12 Can the decline in oil kill the American oil renaissance? In a word, no. It will just kill the stocks. The market is a little asymmetrical right now. The winners from the lower oil price, which include not just the disposable-income plays but also the consumer packaged-goods companies, aren't really getting much of a lift. But the losers, the oil companies, have been clobbered. Take the stock of EOG ( EOG), which is perhaps the best pure domestic oil play. (I like Noble ( NBL) more, but that's in part because of a gigantic field off the coast of Israel.) EOG is a company that's coining money in the Eagle Ford, both with its west and its eastern holdings, and has just reinvigorated its Bakken holdings with new techniques to bring out oil. It's about to turn the technology loose on the Permian, where its Delaware basin could be another home run.