Jim Cramer on the Stock Market: Choose Growth Over Value

NEW YORK (Real Money) -- Here are just some of the comments I have been hearing about various popular stocks recently:

E-commerce company Alibaba (BABA) is overvalued and should go lower. Social Media upstart Twitter (TWTR) is overvalued and should go lower. Social media darling wunderkind Facebook (FB) is overvalued and should go lower. Online Yellow pages Yelp (YELP) is overvalued and should go lower. Search dominant Google (GOOG) , (GOOGL) is overvalued and should go lower. Super electric-car maker Tesla (TSLA) is overvalued and should go lower. Mobile camera company GoPro (GPRO) is overvalued and should go lower. Auto safety software company Mobileye (MBLY) is overvalued and should go lower. (None of them has dividend protection or buybacks.) Entertainment company Netflix (NFLX) is overvalued and should go lower. Biotech drug juggernaut Regeneron (REGN) is overvalued and should go lower.

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Meanwhile, copper miner Freeport McMoRan (FCX) is undervalued and should go higher. Oil platform colossus Transocean (RIG) is undervalued and should go higher. Iron stalwart Vale (VALE) is undervalued and should go higher. Well-managed oil drilling platform play Ensco (ESV) is undervalued and should go higher. They all offer big dividends -- much better than Treasuries -- especially after taxes.

In each case, I have heard these comments over and over again: You have to avoid what's expensive and buy what is cheap. But it is rare in my career that I have seen a bigger -- and accelerating -- gulf between value and growth. We have even acted on them. Right now, the Action Alerts PLUS charitable trust is making a stand in Vale and Ensco and Freeport, and they have become nightmares for us, embarrassing houses of pain. They are so much cheaper than the above mentioned ultrafast-moving companies I mentioned at the beginning of this column, that it is like night and day.

With Freeport, you get all that excellent copper and gold as well as some terrific oil properties and the beautiful 3.67% yield. But it's been a runaway train to the downside. Or how about Ensco with is new best-in-class rigs and that 6% yield that they just swore by? No one trusts it.

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Hey, speaking of value and yield, you would think there would be some attraction for Ensco competitor SeaDrill (SDRL) with a 14% yield? Nope, that's another oft-asked about loser, with the company itself saying that next year is going to be tougher than this year. It has already preannounced bad numbers. Plus, it's really the only company where earnings must be cut because of Russian sanctions, as Exxon Mobil (XOM) was using one of its rigs in a Russian program that's now on hold. It's been down for nine straight days. That's a relentless streak. I say why not just cut the darned dividend already in some sort of mercy killing? Or at least stop trapping people in the darned thing!

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