WHAT MAD MONEYS’ CRAMER HAS TO SAY ABOUT STOCKS TODAY
CRAMERS TAKE ON STOCKS AUG 10 2009
Regardless of why a stock is in the news, it never hurts to hear what a professional investor has to say about it. The key is to gather as much information as you can in order to make the most informed investment decisions you can. As Jim Cramer often reminds, investors must do their homework.
So what has Cramer had to say lately about today’s headline-makers? At Stockpickr, we’ve combed through his recent RealMoney blog posts, “Mad Money” TV show recaps and “Stop Trading!” segments to find out what he thinks about some of today’s newsworthy stocks.
McDonald’s (MCD): McDonald’s same-store sales rose 4.3% in July, due in large part to France and the U.K. Same-store sales in the U.S. rose 2.6%.
On “Stop Trading!” On July 30, Cramer said that while he loves McDonald’s, he said that it and Colgate (CL) were not the right stocks at the time. Instead, he liked Yum! Brands (YUM).
He had recommended McDonald’s on July 21 on his “Lightning Round” segment, as well as Starbucks (SBUX).
Freddie Mac (FRE): Freddie reported its quarterly earnings after the closing bell on Friday. It posted a profit of $768 million, its first quarterly operating profit in two years. Including $1.1 billion in dividend payments, however, it was in the red.
In an Aug. 7 blog post, Cramer said that “a cooling in the buying of the worthless,” including Freddie, Sirius (SIRI) and Ambac (ABK), is a positive sign for the bulls.
The day before, he’d written that Freddie and Fannie Mae (FNM) “shouldn’t even be trading.” “It is totally counterintuitive to buy these stocks as the losses mount and mount and mount,” he said.
And on Aug. 5, Cramer called Fannie, Freddie, Sirius and Ambac “brain-dead and ugly.” “I don’t trust any of these, not for a minute,” he wrote in his blog. “The government can determine whatever it wants to do with the common of FNM and FRE, and I see no way there will ever be anything left for shareholders in that queue.”
Microsoft (MSFT): France’s Publicis Groupe will buy Razorfish, Microsoft’s digital firm, in a deal worth $530 million.
In a recent post to his RealMoney blog, Cramer wrote:
“Apple, Broadcom (BRCM), SanDisk (SNDK) — they just won’t quit. Qualcomm (QCOM) is right back, Intel (INTC) is moving up and Microsoft — by virtue of its pantsing of Yahoo! (YHOO) — is back on the right track even if it had a terrible quarter.
“These are all part of the mobile Internet tsunami that is this generation’s equivalent of the 1992 PC rally and the 1996 Internet rally.
“I am spending a lot of time today on reverse discipline. That’s when you figure out the most difficult thing and you do it. The toughest thing to do was to buy the Nasdaq after the big streak because the propensity to say “I missed it” reigns supreme. But the simple truth is that’s not how it works if you have a broad overarching theme.
“I know so few people who want to believe in a major theme. They’ve all been so had that they don’t know what happens when they see markets rally except to sell — that’s actually been the right course for most stocks for so long that it is counterintuitive to buy into a rally.
“But that’s what history dictates. T.J. Rodgers, the visionary CEO of Cypress Semi (CY) is convinced that we are early on in this revolution. So is Bob Bowman, CEO of MLB.com, the foremost early adopter of the mobile Internet world.
“Remember in 1992 we got profit-taking for awhile, but you did just fine if you bought. But not in 1996 — there simply was no profit-taking and you got stocks that gave you 10-baggers. (Ironically, the leader was Yahoo!)
“Right now you cannot be constrained by convention of the last few years if you are buying within this theme. We just got the next generation smartphones from Apple. The others are coming. You cannot cash in now.”
(Editor’s note: At the time of publication, Cramer owned Yum! and Qualcomm for his Action Alerts PLUS charitable trust.)
By Rebecca Corvino
Posted on Aug. 10, 2009 http://www.stockpickr.com/problog/1895/
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