After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
Tonight's Sell Block isn't
about a stock or a
sector... it's about an
attitude... The negative,
scared, pessimistic
attitude that is causing
you to miss great buying
opportunities... that's
convincing you not just to
give up the easy money,
but to shun it... To use a
baseball metaphor... when
you're keeping your bat on
your shoulder, waiting
until you get the fat
pitch... but, sure enough,
when it comes, everyone
gets scared, and nobody
swings... That's missed
opportunity...
I'm talking about the
pervasive mindset that
doesn't believe in
opportunities until
they've already
happened...
Tonight, we have the
evidence... We're putting
it on trial. The verdict
is guilty! And the lesson
for you is that it's time
to start getting
cautiously more
aggressive, because the
market as we saw -
witnessed by a 200-point
gain in the Dow - is
getting better and better.
Opportunity after
opportunity has been
knocking at the door of
your personal account...
and every time, the
market's reaction has been
to bolt the door shut...
to shove some tables and
chairs up against it, so
it cannot open... and then
hide in the closet, just
in the case the
opportunity gets through
your barricade...
People don't want this...
the house of pleasure...
They seem to be addicted
to this... the house of
pain...
Exhibit A is
Nucor (NUE)!...
Now, this is a
Cramer-fave, "new tech"
steel stock that, last
week, gave us an
incredible opportunity to
buy... and I bet it's an
opportunity that most of
you did not take...
So let's go to the tape
for the evidence...
Last week, we had the
ultimate entry point in
this great steel stock...
It was trading down as low
as $72 smackers. That was
$2 under the price where
it did a secondary
(additional stock)
offering... it offered 25
million shares... a
secondary it needed in
order to finance what I
think is a great
acquisition, without
wrecking its balance sheet
by putting on more debt...
What a fabulous chance to
buy, but did anyone take
it? Nobody I know...
Oh, they made excuses...
They were saying, oh, this
must be the end of the
steel cycle or, if steel
were any good, NUE
wouldn't be going down...
or, NUE just picked the
market off...
Today, NUE pre-announced a
beautiful quarter... they
pre-announced sharply
higher-than-expected
earnings per share... So,
what's happening now?
People are buying up the
stock huge... Oh, well
that's great... NUE closed
at $80.54, up 8.8% from
the $74 secondary, and
11.9% from $72, where you
could have gotten it last
week, when I went off my
mind pushing it...
Is NUE still good?...
Yeah, I expect it'll keep
rallying, along with the
rest of the steels... like
our favorite,
Reliance Steel
(RS)...
and the unbelievable
stock, letter
US Steel
(X)...
But the easy money in X
has been made and, now, I
fear that the easy money
in NUE has been made...
and hard money is tougher
to come by...
People who wouldn't go
near this great stock at
$72... now can't get
enough of it at $80. This
is a "buy high" and "sell
low" crowd, and I've got
to change that. This is
just wrong...
The perspective that said
that NUE shouldn't be
bought after its
secondary, even though it
was to pay for, I think,
great acquisitions, and to
clean up the balance
sheet... the mindset that
told you you were to have
nothing to do with the
stock, even though it was
already down big, ahead of
the deal, so the market
was totally softened, as
we put it... The point of
view that kept you away
from this great
opportunity, even though
NUE is a company with a
long-term track record of
treating its shareholders
fabulously...
The philosophy that told
you to keep away from NUE,
at $72, even though we
knew that fabulous stocks
that fall below the print
price of a secondary must
be bought...
All of these errors in
judgment... all of these
habits... are going into
the Sell Block, because
they are guilty of making
you miss the easy money...
Worse still, could I
really have been more
enthusiastic about this
one?...
I recommended it, along
with all the steels, on
March 26th ... up 12.7%
since then... I
recommended NUE again on
this show, when I brought
on its fabulous CEO, Dan
DiMicco,
on April 24th ... up
9.6% since then... I
recommended it off the
secondary, during Mad Mail
on May 27th ... up 11.1%
since then... I then ended
my show, and this is
rarely done... scrapping a
booyah-free
Sudden:Death section of
the show , in order to
say, all aboard NUE!
But the ultimate
indictment of the mindset
that told you to stay away
from NUE after its
secondary, is that this
has all happened before,
and we should know the
playbook by now, shouldn't
we?...
We know exactly how these
situations go, and have
made lots of money off of
them before... This is a
rule... When a well-run
company with great
fundamentals does a
secondary stock... in
other words, issues a lot
of stock... to pay for a
fantastic acquisition...
without loading the
balance sheet up with
what's the equivalent of
credit card debt... and
then the stock falls below
the price where that
secondary offering was
done... in this case,
$74... you must buy. I
know that's a difficult
checklist, so write it
down. We have seen it
again and again.
They did a secondary on
March 23rd of 2007... It
priced itself at $61.25.
When the secondary was
announced a few days
before, on March 19th, the
stock was at $62. FCX*,
which got hammered, is now
at $117.06... up 91% from
the offering price... and
87% from the closing
price, after the secondary
was announced...
That's a massive gain...
one that I fortunately was
able to get for
my charitable trust, where I
manage my money with an
open hand... And, ever
since then, I have been
preaching the gospel of
buying, as part of my
overall TV evangelist for
money... televangelist...
whenever a great company
does a deep-in-the-hole
secondary that fails, or
looks bad at first...
Because historically...
virtually everytime... the
stocks come roaring back.
You cannot allow yourself
to be scared away from
great stocks at great
prices...
NUE went down after its
secondary. The market took
that to mean that NUE was
finished... The market was
wrong! And that's the kind
of thinking that I'm
putting into the Sell
Block tonight! Because it
leads to the worst kind of
felony in Cramerica...
missing a great and
obvious opportunity, when
a fantastic, wonderful
company's stock goes
down... That's called a
"sale"... and you have to
pull the trigger, or you have to
swing the darn bat, if you
want to go back to that
baseball analogy...
Because, if you kept the
bat on your shoulder...
for these kinds of
things... you will be
called out on strikes...
It's time to get a little
bit more aggressive
people... And I'm saying
this on a big up-day, so
you won't forget it when
the market's down...
When opportunity knocks,
you're supposed to open
the door. And any thoughts
or feelings that tell you
different... from now on,
they belong in the Sell
Block.
. . . .
.
The Bottom Line!:
The next time you get a
chance like the one
Nucor (NUE)
gave you, don't you be
scared off!...
Listen to Cramer, and buy
the darn stock!
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
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Second Segment
Final Segment
2 Title:
'Mad Mail'...
. . . .
.
Featured
Stock(s):
See comments below...
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
Q:
I'm pleased that
you visited
those serving in
the U.S. Navy on
board the USS
Truman. If
you were allowed
to go back to
the area of the
nuclear
propulsion
systems, you
would have
likely seen a
number of ship
service turbine
generators.
These large
pieces of
machinery are
the source of
thousands of
kilowatts needed
in nearly every
part of that
vessel.
The device that
controls each
turbine's speed
is a device made
by WGOV. JJC:
That was the one
area that I did
not get to
visit. My
bad. WGOV
remains one of
our favorite
names...
absolute-favorite
names... because
it also has a
wind turbine
business.
You've got a
winner there...
[
end of final segment ]
Go to the SUDDEN:DEATH
SEGMENT from
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Finance from
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Symbol keys:
A Charitable Trust stock.
- An asterisk next to a
stock symbol indicates that
Jim mentioned it is a stock
that he manages within
his
charitable trust portfolio.
You can see the complete
portfolio
of stocks
here >>
Thumbs up - indicates
he would buy the stock or,
at the very least, not sell
the stock. We do our
best to interpret Jim's
opinion on stocks, as we
think it is indicated by his
comments during the show.
Please read his comments to
decide for yourself.
Thumbs down -
indicates he has said not to
buy or to sell the stock,
based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
yourself.
Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
financial phrases
here >>
Helpful Websites:
See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
Stock Homework 101:
This is an excellent
upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
FastMoneyRecap:
This site will be a quick
summary of recommendations
made by the great Fast Money
TV show crew, that will
offer you a unique service,
to compare their picks to
Jim Cramer's past comments
about those stocks.