See MSO's official
investor relations' site
here.
See the Yahoo!
Finance profile for
MSO
here.
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
JJC: You
better sit down for this one
because you're never going
to believe it...
I mean, you're never going
to believe it... It is Sell
Block time and today we are
doing the unthinkable...
We are doing prisoner
release...
Even in this time of
recidivism... We're doing a
jailbreak...
Yes, because I want
Martha Stewart Living
Omnimedia (MSO)...
You heard me... MSO, busted
out of the Sell Block, long
after Martha checked out
herself...
MSO, the publishing and
merchandising empire for
Martha Stewart... You know,
you're probably not even
aware that it's public, it's
been so low-profile, reports
next week... Nobody cares...
It is for those in the
cognoscenti, it is a hated
and despised stock, with
tons of negatives... But
just you watch, and Cramer
puts on his magician hat and
turns all those negatives
into positives...
But let's give the parade of
horribles its due...
First, magazine trends,
right?... They're a
softening industry wide,
advertisers are pulling
back, publishing is 55% of
MSO's revenues, Martha
Stewart Living, Everyday
Food, Body and Soul, Martha
Stewart Weddings... The
compares for all of these
are more challenging...
Second, Susan Lyman, the
well-respected CEO left...
Third, MSO, historic high
expense structure...
Fourth, its merchandising
division is predicted to
lose a key sponsor in 2010,
KMart... Merchandising is
24% of revenues... Losing
KMart could mean losing over
$40 million smackers...
Fifth, I think people feel
they're still too much
Martha, and she owns 50% of
the shares...
Okay, I think all those
negatives turn into
positives if you take a
closer look...
And remember, I have hated
this company, so you're
talking about a guy who
despised this as much as
anybody... First of all,
let's talk about
management... Susan Lyman,
okay?... As much as I like
and respect her, and she is
terrific, the company hasn't
been able to move much
beyond publishing, okay?...
No, publishing and some
merchandising under her
leadership... And remember,
under her leadership, the
stock's been cut in half in
the last year and I have
hated the stock all the way
down, my bonafides... I
think it's time for someone
new... I think the Chairman,
a man who was always behind
the scenes trying to do a
good job, is now stepping up
to the plate, Charles
Koppleman, a proven winner,
who practically built EMI,
has got more engaged than
ever before...
Now, who is Koppleman?...
He's the one who discovered
Bobby Darren, Billy Joel and
Tracy Chapman and turned
them all into successes... I
think he can do the same for
Martha who is already a
household name on nearly
every part of the planet...
There are two CEO's now,
co-CEO's, not my favorite,
do I like that structure,
not really, but it might
work in this case... Robin
Marino, 30 years in retail,
helped run Kate Spade before
she took this over, she was
COO... Wendy Harris-Ballard,
who I've known for years, is
a great publishing exec,
both offline and online...
She was a key driver of the
success that
Yahoo! (YHOO)
once had...
Since MSO has two main
businesses, which is
publishing and
merchandising, they could
make a dynamic duo, and
allow Martha to do what she
does best, to develop
content and Koppleman to do
what he does best, think big
about where this company is
going, and I think it's
going merchandising... Most
important is Martha
herself... People treat her
enormous involvement as a
negative... I think they're
insane... In my opinion,
she's proving that Scott
Fitzgerald wrong... A
fabulous woman who stumbled
personally but never
professionally and has
always been amazing at her
job... Take it from me, she
seems more energized than
ever, determined to mount a
second act... It is easy
here to build than rebuild,
but it seems that Martha
Stewart does not want her
jail time to be her
legacy... I think she wants
to prove to the world that
MSO is worth much, much more
than $7 and change where the
stock went out tonight...
She's got a lot at stake...
But I want to bank with her
a fired up Martha, who still
looks great by the way, says
this from a 63 year old...
You've got a great person,
behind the scenes... You've
got a fabulous chairman
Koppleman and two CEO's who
want to win... I don't know,
entrepreneurs all, I think
this could be huge... Now,
MSO reports next week... It
has already guided down
after last quarter so I
don't expect much
excitement... Then again,
expectations are very low
across the board... The most
important analyst on the
stock at JPM downgraded it a
month ago and he downgraded
it right on Susan Lyman's
departure, he said you know,
turmoil, all right... I
think he'll be wrong... RBC
downgraded it in April with
a piece entitled "A good
guest knows when it is time
to thank the host and
leave"... He said there's no
upside... Actually, I think
the RBC guest stayed way too
long and way too low... I
say this piece should say
"here's your hat, what's
your hurry, don't let the
door smack you on the way
out"...
This stock has no
sponsorship whatsoever at $7
bucks... After left all the
way down from the teens... I
didn't like it then... To
men, that's classic analyst
behavior... There was a sure
sign of a bottom, and
universal hatred from the
guys who used to love it...
That said, here's some
caveats... It's only about a
$350 million company... So,
if you pay up, and you pay
up and you'll see it like
right now, you're watching
the screen, it's got the
stock popping, you're an
idiot... You're a moron,
you're a fool... I want
limits... I don't think you
should pay $8 for it... I
want small increments... If
you pay above $8, if you use
market orders, I think you
will regret it, particularly
in this market... I am not
recommending MSO as a trade
ahead of the earnings
report... As a matter of
fact, I wish you wouldn't
buy it until after the
earnings report... But I
can't have that... I know
you get excited... Do the
homework, work on the
weekend, whatever... But do
not pay up... I'm
recommending it because I
think the future is
merchandising worldwide, not
just publicly, and that's
what I think has been
missing here under Susan
Lyman... And I believe
merchandising is the key to
why MSO just bought, not
that anybody cares at all,
Chef Emeril Lagassi's
business... BAM... Like
Booyah... Fabulous
diversification away from
Martha, at what looks like a
terrific growth property...
Everyone is so worried that
this is just Martha... Oh,
Martha this, Martha that...
But Emeril is one of the
four people I know that go
by first names only, Oprah,
Martha, Emeril, and Madonna,
and how about Regis?...
Okay, this company has half
of them, or at least two
fifths...
Now... about turning the
loss of K-Mart into a
positive... In a couple
weeks time, you're going to
see, if you're watching TV
at all, Martha Stewart,
nationwide TV, big campaign,
new crafts line at
WalMart... 100 million
people visit WalMart a week,
and her line will be rolling
out in 3000 stores this
year... Gigantic... She has
a new deal with Macys, a
special deal with COST,
these are rolling out now...
Her housing line with KB is
selling well... Really the
only bright side in whole
darn housing market if you
ask me... although, I think
housing are bottoming by
year-end okay?...
Most important, I believe
that Martha's brand is
bigger overseas than here...
And I think we will see a
roll out of Martha Stewart
stores worldwide, no one is
talking about it... It feels
to me like what Ralph Lauren
did six years ago, which if
you bought it by then you
caught a five bagger, five
times the initial
investment... I look at this
company's in transition from
publishing into
merchandising... It's true
that I'm asking you to buy
into the (time), the 17
months between now and when
Martha Stewart separates
from Sears, K-Mart, but the
company can see itself
through this interlude...
Steep decline in royalty
payments, not a problem...
This company has cash and
its cash is full of positive
without the royalties...
Maybe a better deal lies
ahead for a flagship brand,
that's the sheets and stuff,
the household furnishings...
In the interim, you've got
international merchandising,
we've got Emeril, Bam,
Walmart, Macys, Costco...
That will move the needle
here... How many other
publishing companies are
crying in their InBev
because of shrinking margins
and readers... Well this one
has growing readers and more
importantly, has been
becoming more than a
publisher... Hey, ask the
New York Times, Meredith,
McClatchy, Gannett, are they
doing that?... They haven't
figured out how to do
merchandising... MSO leaves
them in the dust.
. . . .
.
The Bottom Line!:
Really, it's Martha
herself... The woman is
bigger than the stock, but
it can't stay that way for
much longer... I think the
stock is at last going to
reflect her work... I don't
think you should wait until
it does, before you buy
it... Use limits or I will
come after you at your
home...
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Final Segment 2
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
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STOCK
SYMBOL
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price
next
day
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each)
Q:
In light of
QCOM's "legal
truce" with
Nokia (NOK),
do you think
this rally has
the legs to take
QCOM to $55 or
$60 a share or
should I sell
now and get out
of the tech
market?
JJC:
Let me tell you
what I told
people who
subscribe to my
newsletter which
is done in
conjunction with
TheStreet.com,
that's where I
trade
my charitable trust... I think
this has much
further to go...
This is the
only, QCOM is
the only
pristine story
for 2010-2011,
it's 3G and
4G... I think
it's going much
higher... Any
weakness, I know
I'm going to buy
it for my
trust... Now,
I'm not puffing
myself... I know
I have been hit
like everybody
else, but QCOM
has been
something I've
done right in
this market, and
I think it goes
much, much
higher... And
again, I do not
tell you that I
am doing well, I
am doing as bad
as everyone
else, this is a
very tough
market...
y charitable trust,
I gave away a
lot of money
last year, I
hope I'll be
able to give
some this year.
Q:
Jim, I am
considering
buying either
Boeing (BA)
or NOC because
it appears one
of them will win
a $40 billion
contract to
build a new
Tanker for the
USAF. The odds
are in favor for
NOC... they are
partnering with
Airbus of
Europe, who
initially won
the contract. Do
you think
winning tat
contract will
drive up the
stock for
whichever
company that
wins?
JJC:
I gotta tell
you, BA is being
hurt by a
perception that
airlines won't
buy any planes
anymore... NOC
is being hurt by
a belief that
Obama wins and
he dismantles
the military
industrial
complex... I say
put your money
on NOC, it's got
steadier cash
flow and BA is
just so hated
that every time
oil ticks up,
the stock seems
to go down 2 or
3... That one is
too hard to own.
na
na
na
Mad Mail
General comments...
Q:
Booyah Jim,
Enjoyed your
appearance on
Regis and Kelly
this morning.
The fact that
you are still
appreciative of
Regis' help when
you first
started "Mad
Money" says
quite a bit
about your
character. It's
good to see
loyalty in the
world of the
rich and
famous... Laize
le bonton roule.
JJC:
Let me explain
to you about
something...
There are people
in my life I
look to when I
worked at other
networks
everyone said
the same
thing... I've
worked at every
network...
Regis, follow
Regis... I had
no idea that he
was even knowing
who I was...
When he sent me
a handwritten
saying, I didn't
even believe it,
saying that he
liked Mad
Money... I said
to myself, and I
had doubts, we
all have doubts
about everything
in life, I may
have hit because
the man who
defined show
business in this
country likes
it... I am so
proud to be on
his show... I
dropped
everything to be
on with Regis
and Kelly...
That show is a
delight, and I
know it's not on
our network, but
I have to say, I
hope everybody
watches it...
There, I did it,
the unfathomable
sin.
Q:
Jim, I have been
watching you
show every night
religiously and
learned a great
deal from you,
but I definitely
disagree with
you on this one
- why on earth
would you say to
sell BTU because
of Boone Pickens
and his clean
energy plan?
Pickens' plan
isn't going into
effect tomorrow!
And last I knew,
China was
opening a new
coal burning
power plant
every day. Still
a big fan, I
love ya' man.
JJC:
What I was
trying to do was
cut back on some
of the exposure
that I've been
recommending in
energy... I feel
like that the
biofuels, I feel
like that the
whole stocks...
I can't be
recommending all
this energy,
because I
believe that oil
is going to
$110-120... If
that's the case,
I can't be in
coal... I had to
take something
off the table...
I wish I had
taken it all off
the table, but I
still believe in
natural gas and
in oil
service... And I
believe in Mad
Money, and Regis
and Kelly.
[
end of final segment ]
Go to the SUDDEN:DEATH
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says the stock is so good,
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In other words, this is the
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indicates that, after you do
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homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
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Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
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Lightning Round, when Jim
does not know in advance who
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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
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See more
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upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
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