See BBT's official
investor relations' site
here.
See the Yahoo!
Finance profile for
BBT
here.
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
Jim: Maybe the whole
market is asleep... Maybe
everyone was away for the
weekend... For we got a
monumental decision out of the
FDIC... one that's going to
rescue and transform the banking
industry, and create whole new
financial colossuses that you
will want to own. That's
why we're getting this great
bank rally, believe me...
And we have got the single-best
one for you on tonight's
show!...
You see, this weekend we learned
that the FDIC finally has a
plan... I think the right
plan... for dealing with failing
financial institutions...
a plan that could be terrific
news for any number of good
banks, not to mention the
financial system as a whole,
which has been rallying, ever
since July 15th...
It's the plan we've been waiting
for on Mad Money for months...
And not a soul is talking about
it, writing about it, buzzing
about it... and it's driving me
crazy, and we're going to
accomplish that tonight...
Now you probably heard about
Integrity Bank... about how
this faith-based bank showed too
much faith in its mortgage
holders, and it failed over the
weekend...
And you probably also heard that
Regions Financial Corp. (RF),
which I don't think is a
particularly strong bank, or a
particularly good bank, got to
acquire part of Integrity... the
good bank part... $900
million worth of deposits...
while the FDIC took a $250-$300
million hit, taking over the bad
part of Integrity... the crummy
loans...
To me, this is not just another
bank failure... This
is huge. It is huge,
get-on-the-desk news!Why?
Because it shows a monumental
change in strategy by the FDIC.
They're no longer following that
failed IndyMac model anymore,
where they just took over the
whole thing... the good bank
part and the bad bank part...
Now they're doing what I've been
advocating... they're splitting
failed banks into their good
bank components... the
deposits!... and their bad
bank components... the bad loans
they have on their books...
and then they're selling the
good bank to another bank...
selling their deposits to
another bank... while the
federal government, the
taxpayer, keeps the bad bank.
In my opinion, this plan is so
right that I'm not even bothered
by the fact the FDIC has yet to
credit me for the idea...
. . . .
.
I believe that this is the solution to
the problem of bad banks. And when
I say that I'm talking about the problem
of the bad banks, the bad part of
in-trouble banks that are overflowing
with crummy loans... especially
mortgages that people can't pay back...
those go to the FDIC.
What the FDIC did this weekend is just
like the Resolution Trust... it
separated the bad loans from the good
deposits in 1990, ending our last
financial crisis... And you
want to know why the banks bottomed on
July 15th... You want to know why
the banks and the homebuilders are the
biggest rallying group...
Back then, in 1990, the Resolution Trust
took on the bad loans of banks that had
failed, and sold the deposits in the
institutions to stronger banks.
That's how we got these unbelievable
collossus great banks... that made you
fortunes... 200% from the bottom in
1990!
We're seeing a replay of that now!...
Oh, it may not be as good as that...
that was unbelievable... but that means
there should be many opportunities for
you to profit, because the banks that
get to buy the deposits... the good bank
part of every failed bank... gets to
make out like bandits.
If
Regions Financial Corp. (RF),
which is a mediocre bank, got
Integrity, then I can only imagine
what a much stronger regional lender
would be able to get... and the bank I
am thinking about... the bank I am going
out tonight, and saying is as good as
the fortress... the bank that I think
you need to own is
B & T Corp. (BBT)...
. . . .
.
The Bottom Line!:
The FDIC... gloriously... has come
up with a plan! They obviously
watch the show!... And the plan
should let the good banks survive and
thrive. The government takes the
stinky loans. The good banks get
the good parts, the deposits, and
BB & T Corp. (BBT)
is the single-best way to play it.
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Second
Segment
Final Segment 2
Title:
'CEO
Interview'
'Joy To The
World?'
. . . .
.
Featured Stock(s):
Interview with Mike Sutherlin,
CEO Joy Global (JOYG)
See JOYG's official
investor relations' site
here.
See the Yahoo!
Finance profile for
JOYG
here.
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
Jim's comments BEFORE the
interview:
We are experiencing a global
collapse in commoditites.
There was a fabulous chart today
in the Financial Times that
showed you how much these have
come down... natural gas
especially... Every
commodity... copper, grains,
oil, zinc, natural gas, steel,
coal... It has every
stock that is in the servicing
industry, in the extraction
industry, down in its wake.
It is ferocious, it is swift,
and it is more painful than any
decline I've seen, other than
the banking decline in the month
of June and early July.
Few stocks are more in the
crosshairs than the coal group,
buffetted by what looks to be a
total cessation of Chinese
orders... a huge drop in the
price of competitive energy
sources, such as natural gas and
oil, and perhaps, most
important, the potential
ascendance of the democrats, led
by Barack Obama, who seems to be
coronated already... At
least that's what the market's
telling me.
Caught in this riptide of events
is one of the most prosperous
companies in the energy
servicing business. It's
called
Joy Global (JOYG).
It's one of two producers of
coal mining equipment, along
with Bucyrus
International
(BUCY).
JOYG reported this morning what
looked to be a perfectly fine
quarter, even if you back out
the one-time gains. We saw
a dramatic increase in backlogs
for equipment, but the Street
found the number light by a
couple of pennies...
The result?...
A tsunami of selling that
brought this stock down $12.52,
or 19%... Now, a
7-cent miss doesn't usually
produce a 12.52-point decline,
on top of the 8 points that this
stock had already been down...
7 cents, and $1.8 billion in
market cap vanished?...
Wait a second...
So, are we using this decline in
this key industry, which is one
of the most robust going into
2008, to try to flush things
out? Yes. To examine
the amazing commodity calamity
of 2008, and whether the whole
darn selloff makes any sense...
I need to know...
Is it a buying opportunity, or
is it a reason to run from the
group, especially with oil and
natural gas continuing their
endless decline... the stocks,
maybe not the commodities?...
JOYG gets 68% of its sales from
the coal mining industry.
But, nevertheless, its orders
are up a whopping 139% this
quarter...
If the commodity apocalypse is
real... if coal is as much
of a dog as the market seems to
think... the Dow Jones
U.S. Coal Index (^DJUSCL)
being down 39%... from its June
30th peak... how come miners are
ordering so much equipment from
a company like JOYG?
What's with all these new
orders, given the price of
everything we pull out of the
ground has been in freefall?
And here's another angle...
Is it possible that JOYG's miss
had nothing to do with the
commodities collapse, and
everything to do with the
company's execution?...
It's getting orders like mad,
but its operating income came in
at $134 million, compared to the
$150 million the Street
expected... Maybe the miss
here was about execution, not
about weak coal and
commodities...
We need answers. With this
kind of decline, we need
answers... I've got the
man to ask... Mike
Sutherlin, the President and CEO
of
Joy Global (JOYG).
Mr. Sutherlin, welcome back to
Mad Money...
. . . .
.
Jim's comments AFTER the interview:
He's absolutely right. It was
one of the worst days to possibly
report... it was not a quarter that I'd
like. I think that what will
happen first is that you'll get a
bottoming in the oil and oil service
companies, because oil has not come down
as much, and because we're not running
out of coal like we're running out of
oil... So I would look at the oil
service companies to bottom first,
before I would buy either
Joy Global (JOYG)
or
Bucyrus
(BUCY).
You've got to wait for Oil Service, as
viewed by the
Oil Services Holders (OIH)...
that's the index I follow. When
that bottoms, then, after that bottoms,
maybe this one will bottom.
■
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)
Go to the LIGHTNING ROUND from
tonight's show
here >>
See current quotes on Yahoo!
Finance from
tonight's show stocks
here >>
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.
