Wednesday, 01/30/08
Posted 01/31/08,  1:17 am ET

(Scroll down to see Jim's comments below)

 
 
Today's date:  Wednesday, 01/30/08

  Dow Jones: 12,442     - 37
  NASDAQ:   2,349      - 9
  S&P 500:   1,355      - 6
 
 
 
 


On
the Fed's rate cut today of 1/2%...
JJC:   Let's say the Giants win the Super Bowl...  How do we interpret it?... Did the Pats win the Super Bowl?... No...  The Giants won the Super Bowl.  There's no interpretation... This was just positive...  We have money flushed from the sidelines.  We're taking off the equation of systemic collapse...  That's how Washington Mutual (WM) can go up so much...  A Countrywide (CFC)...  Now Bank of America (BAC) will want to buy CFC, not walk away...  It doesn't really solve the problem of so-called 'mono lines'... The Ambac (ABK) and MBIA (MBI) but, if you take a look at the cuts today, in Goldman Sachs (GS*), when the stock was up big... There was a big downgrade in Merrill Lynch (MER)...  Those now seem like rear guard actions...  This is just incredibly positive...  The Fed is getting there...  I salute the fact that they're doing this... I don't know why they did it... Maybe they did it kicking and screaming... I'm not going to look through it.  50 basis points is good.  The market should be up a substantial amount from here...  Financials are doing the leadership.  That's always great...   Bank of America (BAC)... they raised all that money... and the stock still goes higher.  That means that piece of paper was good.  People bought the Washington Mutual Preferred (WM-PR)... that's good.  A Citigroup (C*) can easily re-liquify again...  John Thain must be sitting in there and saying that the Oppenheimer report is like something that happened before he came in at MER...  I really think this is a huge positive, and the market should react continually positive.  Great news... great news.

General Motors (GM) is breaking out here.  The General Motors 7.5 Preferred (GMS) is just a fantastic piece of paper...  Yes, what I'm saying is, perhaps, you'll get something that is negative, to give you a better chance (to get in at a lower price/entry point), but this is, if using a 1990 model, you first got the double, and then you got the double again... and the double again...

.  .  .  .  . 

On the Financial-related Stocks...
JJC:   I'm raising numbers on all financials right now... Centex (CTX), getting out of Ohio... Ryland (RYL), telling you that January's better...  We're seeing January better in retail.  We are basically out of the woods... Thank you to the Fed... I think it's great that they did it now... I wish they had done it earlier.  All is forgiven.  Financials should be bought...

Oil is going to $100 (a barrel)...  I think that you can still own Bunge (BG), upgraded...  The fertilizers are still very good...  Archer-Daniels-Midland (ADM) is good...  The big selloff has occurred, and the group is ready to recharge. 

I am bullish, okay?... I am bullish...  

.  .  .  .  . 

 

 



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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)

CFC

6.47

6.40

Countrywide (CFC)

WM-PR

1110.00

1081.15

Washington Mutual Preferred (WM-PR)

C*

27.88

27.00

Citigroup (C*)

GMS

19.05

19.16

General Motors 7.5 Preferred (GMS)

CTX

26.40

25.50

Centex (CTX)

RYL

30.05

29.28

Ryland (RYL)

BG

119.54

119.11

Bunge (BG)

ADM

42.99

42.81

Archer-Daniels-Midland (ADM)

 

       
   
 

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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.

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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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