Friday, 01/11/08
Posted 01/13/08,  11:33 pm

(Scroll down to see Jim's comments below)

 
 
Today's date:  Friday, 01/11/08

  Dow Jones: 12,606   - 246
  NASDAQ:   2,439     - 48
  S&P 500:   1,401     - 19
 
 
 
 


On the Fed and a prediction of an early Fed rate cut...
JJC:   Look... the Fed... they are the opposite of everything that you want if you're long, so the idea... they're not going to do it.  Does it makes sense to do?  Absolutely.  They should have cut yesterday.  I look at the action in American Express (AXP) or the consumers... but, I've got to tell you, we're obviously in dire straits...  The smugness and the recklessness of the Fed I think are extraordinary... If this were sports, we would never allow this kind of unaccountability...

.  .  .  .  . 

 

On the agriculture stocks...
JJC:   Mosaic (MOS) is terrific.  I think Agrium (AGU) is a catch-up trade with MOS.  MOS, at one point this week, was down 10 points from where it is now, and so, if you focus on that, you're going to do better than if you bet against Procter & Gamble (PG) at $70, even though I don't PG's quarter is going to be that hot.  I do think Coca-Cola (KO)'s quarter is going to be good.  AGU made that great acquisition, and I think it was a really good trade that they did, and they did the secondary...  Now, understand... today is just a big short squeeze day...  and that's the game you play when Countrywide (CFC) gets the bid...

.  .  .  .  .

On the market action and stocks in general...
JJC:   I happen to be partial to Coca-Cola (KO), because the commodity prices peaked for them already.  PEP... Indra Nooyi has done a remarkable job.  The stock was at $72.50 when they reported and said that raw costs weren't that good, and the stock subsequently went to $79... But these are all recession/depression trades...    

.  .  .  .  .

On the financials and other possible stock plays...
JJC:   I think that there's going to be an auction for Washington Mutual (WM) and it's going to go, because WM has got a huge option arm... a huge amortization problem...  the financials are just hideous there.  Kerry Killinger (CEO of WM) is doing his best to just do a bad job...  Now, here's the thing... It'll be a takeunder, like at Countrywide (CFC).  I do not feel like...  WM, at $15, is very much like CFC at $8, which is... yeah, maybe you get the big bid, but you don't make any money...  Wells Fargo (WFC) would want to buy it at $13.  WFC and Bank of America (BAC) would basically split the whole country.  There's no anti-trust, because we can't afford it... they have to look the other way, because we can't have two trillion dollars worth of services just run amuck...  

.  .  .  .  .

 

 

 



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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)

AGU

69.08

70.89

Agrium (AGU)

KO

63.77

63.75

Coca-Cola (KO)

PEP

77.78

78.25

Pepsi (PEP)

         
   
 

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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.
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