See LPS's official
investor relations' site
here.
See the Yahoo!
Finance profile for
LPS
here.
See Opening Segment 2,
below...
After this segment, you
can see Jim's Lightning
Round picks
here...
Jim:
With Congress's
failure... they know
nothing!... to pass the
Invest In America Plan,
as I called it, the
much-needed bailout that
I believe we needed to
stave off a second Great
Depression, we have to
be on the lookout for
the rare stocks that can
still work in this
horrible down-778 point
market... that I believe
is still going much
lower... maybe down to
Dow 8200, as I said last
Friday... unless the
House can pass the Plan
on a re-vote...
. . . .
.
We have to find the
stocks of companies that
benefit from a lack of a
plan... and, believe me,
these are true needles
in a haystack... because
the vast majority of
companies that would
have benefitted from a
plan now are diving, in
the worst point decline
ever...
And I think I've found
one... I mean,
unbelievable... There's
always some bull market,
but it is getting so
tiny that the ring is
closing on us...
And that one is...
Lender Processing Services,
Inc. (LPS).
This is for people who
still have cash and
haven't been blown out,
I guess...
It's a company that
actually benefits from
the credit crunch, or
the mortgage massacre,
if you want a more
colorful description...
. . . .
.
What's LPS do?...
This is a company that
does loan transaction
services. These are the
services banks use when
they create mortgages...
not so big right now
but, more importantly,
default management
services... Now that's a
business I want to be
in...
LPS helps banks with
foreclosures and
property inspections...
something that's
certainly in bull mode
right now, given the
staggering number of
foreclosures in
America... and
especially given the
House of Representatives
failure that would help
stem the tide of
foreclosures.
. . . .
.
Without the plan, I
foresee big business for
LPS...
LPS gets 66% of its
sales from these
transactions, 34% from
its technology, data and
analytics business,
which consists mostly of
mortgage processing and
related services...
The mortgage processing
part of the business is
also one of the few
areas that can actually
work right now, given
the deal Fannie and
Freddie made with the
New York Attorney
General, which could
require them to only buy
loans from banks that
work under standards
that add independence to
the home appraisal
process... Depending on
how the rules are
written, LPS should be
able to benefit as an
independent
intermediary... a
company banks go to in
order to legitimize
their lending practices,
so that they can sell
their loans to Fannie
and Freddie, a New York
State Attorney General
play...
. . . .
.
Now let's get back to
the pain and misery of
the American
homeowner... because LPS
is the #1 player, when
it comes to providing
residential default and
flood services...
When the bank takes your
house - something (why)
I was in favor of the
Plan, because I thought
it would happen less...
when they takes your
house, the bank then
goes to LPS to inspect
your property... help
with foreclosure
services, and also
assist the bank with its
responsibilities as a
new real estate owner...
. . . .
.
I think you'll be able
to buy this one at much
lower prices, because
people are selling
everything... even if
the failure of the Plan
actually helps the
company... as the whole
market is coming down.
Keep your powder dry.
This is a disaster name
that works without the
bailout, but that
doesn't mean you have to
buy it here. In fact,
you must wait for LPS to
go lower. And, just to
give you an example of
what I'm talking
about...
Remember, we had that
McCormick & Co. Inc. (MKC)...
We absolutely nailed
MKC. We said it was
going to be a great
quarter, and it turned
out to be sharply
better-than-expected...
They raised numbers, and
then you got a really
bad day, and now it's
down a buck, and now you
pull the trigger,
okay...
People that aren't
watching the show,
they're just throwing
away stocks. Keep it in
mind...
Here's the bottom
line...
. . . .
.
The Bottom Line!: Lender Processing Services, Inc.
(LPS)
is the stock to buy if you want to
profit from foreclosures... from the
failure of the bailout plan... and
here's a company that's coining money
off of something... well... that's just
killing everybody else.
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Mutual-Fund-Holdings.com
NEW RESOURCE!
See Ken Heebner's CGM
Focus Fund
Top 25 holdings - The No.
3 Top-Performing Mutual
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See MTN's official
investor relations' site
here.
See the Yahoo!
Finance profile for
MTN
here.
After this segment, you
can see Jim's Lightning
Round picks
here...
Jim: We've
been using the back end of the
show to speak to CEOs from the
real world... to try to find out
if things are as bad as, say,
the stock market tape would
indicate.
One of the great places for
wealthy people... well, they try
to be for everybody; they've
things more popular... to
vacation, is
Vail Resorts Inc. (MTN).
It's one of the largest ski
resort operators in North
America... It's got
Marquee Resorts... 17
hotels. And, because
it is so clearly a discretionary
purchase, to go to Vail, the
short sellers have ganged up on
this stock, and sold more stock,
and have not been able to
deliver it...
And I'm trying to find out
whether that was smart or
dumb...
So let's welcome Robert Katz...
he's
Vail Resorts Inc. (MTN)'s CEO...
Robert, good to see you...
. . . .
.
The Bottom Line!:
Look, you know... put it on a list.
If it goes down a lot, remember, it's
got cash. Maybe you feel like this
is a... there's going to be a turn.
We know that, structurally, people are
still going to be flying in on
international business. I think
it's an interesting stock. It
certainly doesn't seem like a stock
that's the greatest short in the world.
■
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
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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.
