Opening Segment #3:
'Mad Mail'
Wednesday, April 1, 2009
 

Viewers write to Jim, asking about stocks or simply about the market in general...

Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name & Jim's Comments:

na

na

Mad Mail question:

General question...


Q:    Jim,
In addition to reinstating the uptick rule and enforcing naked short-selling rules, how about one more? Let’s get rid of this quiet period in front of earnings announcements. I believe this was put in place before the rule mandating public dissemination of information. It seems outdated to me, and it allows shorts to make legal yet false statements about companies who are in turn not allowed to respond. Shouldn’t this rule be abandoned to even the playing field for the small investor?
  -- Mauro

Jim:    I think that if you could get a couple of guys lying… saying that they knew what they were saying were false statements… you would just have to bring one or two cases… now the old SEC would never bring that case because they were in the pockets of the short sellers… at least metaphorically… but you just need to bring one or two cases and that game is over… give me a call.

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See comments continued below...     

 

Market Results today:

Dow:  + 152

Nasdaq:  + 23

S&P 500:  + 13

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Wednesday, April 1, 2009
(Cont'd from above)...

Viewers write to Jim, asking about stocks or simply about the market in general...

Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name & Jim's Comments:

na

na

Mad Mail question:

General question...


Q:    Dear Jim,
I am 24 years old and in the US Army. I started trading stocks in February and have since doubled my account, using only your advice and fundamentals training… Your unbiased advice and outlook on how to read the market is gold to me and I can rest assured knowing that through watching your show and reading your books, my family and I will live a prosperous life.
  -- Todd

Jim:    Thank you Todd, just plain old thank you… just a nice thing, this is from an actual viewer… as opposed to the critics that have never seen the show.

HON

28.31

Mad Mail question:

Honeywell (HON)

Q:    Jim,
I was doing my homework for a possible investment in Honeywell. In reviewing the most recent annual balance sheet, I noticed that 1/3 of their total assets were goodwill and without the goodwill, the company would have had a negative stockholders’ equity. Not to castigate HON in particular, I’ve just never heard you mention how you deal with goodwill when analyzing a company’s balance sheet. Furthermore, I didn’t hear you mention anything about it when you last had HON’s CEO on your program. Will you explain it?
  -- Richard

Jim:    Good will accounting is pretty complicated.. there is, when you make acquisitions you do tend to be able to create what looks like a difficult balance sheet… we should actually go to Dave Cote on that… rather than me… rather than me opine on the goodwill situation… but anyway, we do like Honeywell… and we think that the stock is a complete and utter "buy" here.

 

[verbatim recap]

[end of segment]


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