After this
segment, you can
see Jim's Opening
Segment picks
here...
On
the financials and
Fannie Mae (FNM)...
JJC: I have a
rap here... and the rap is that
there's an existential crisis
among the short sellers... You had
the greatest single short idea
happen... a company that guided
down, that cut its dividend, that
reported a huge downside
surprise... and it has to issue a
lot of paper... FNM... and the
stock went up yesterday. I think a
lot of short sellers said, that's
it... I'm covering... I can't take
anymore... That was just the
single-greatest quad-fecta in
history, and I still lost money.
Let's cover the financials... and
I see that's what happened... It
was just this moment... this
gut-wrenching moment by the
shorts. I think a lot of them
covered, and now you're seeing
there's no bid underneath... I
mean, if I were shorting FNM, and
this happened yesterday, and I
would go in to whoever's position
it was and say, you're fired!...
You're all fired!... We're going
long! And then, as soon as that
happens, that's exactly like when
you get a short-term top... I
would be careful with the
financials... I think you've got
to let them come in, because now
you've got to see... How many
other companies are going to issue
equity?... The quarter's not going
that well... I think you've got to
wait for that pricing. Let's wait
for some FNM paper... Let's see
how the
Citigroup (C)
paper does... let's see how the
Merrill Lynch
(MER)
paper does... I think you'll be
sidelined here, because there's
just too much that was bad in FNM
for me to believe that that was
anything other than a (short)
squeeze... Let's see what happens
when they price the merchandise,
because everything's over-inflated
by the shorts giving up and
covering... in that group... in
that group...
. . .
. .
On
the homebuilders and
Centex Corporation (CTX)
and
DR Horton (DHI)...
JJC: These are
situations... Now people are
saying, why am I short these? Even
when they... Like
Beazer Homes USA Inc. (BZH)...
BZH goes into technical default...
It doesn't matter. It was down 21
cents... Here's what I see
happening... Price doesn't matter.
No matter how much we cut the
price of homes, they don't sell.
Totally wrong! Proven by CTX and
proven by DHI... When they decide
to crush their own gross margins
and put houses up for sale, they
sell, sell, sell... You get rid of
that inventory... Now, the good
news is that there is a price
where stuff sells... The bad news
is, these companies aren't... they
have no earnings power
whatsoever... so, if you own DHI,
you say, well, at least they're
not going belly up... but that
trade has occurred... that trade
has occurred. I see no reason to
own the homebuilders here. It's
not like mortgage rates are going
down...
. . .
. .
On wind energy stocks...
JJC: You know
the wind trade is good... here we
go again...
Quanta Services (PWR)...
You know I like
Trinity (TRN)...
You know I think that Vestas
Wind Systems (VWS.CO)
can't be played, because of
uncertain execution; and
Zoltek (ZOLT),
because of financial
shenanigans... That puts that
funnel into PWR and TRN... and a
couple of billboard names that are
not appropriate for the show...
But wind is a prevailing theme...
we know from
Warren Buffett
that he had to make a phone
call to the parent company of this
network (i.e.,
General Electric (GE)
to be able to get windmills for
his utility division... There is a
short supply in windmills...
Anyone who's involved in
installing them... anyone's who's
involved in making them... It's a
win still... particularly with oil
where it is... We want wind to
replace peak energy from
utilities... and we would love it
one day to be in baseline energy
in the midwest. It's just all of
it is just a shift... We need to
worry about utilities. When
utilities shift away from oil and
coal, that's a win for the
emissions people...
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Please read his comments to
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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
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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.
See more
"Cramerisms" & other
financial phrases
here >>
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