Jim's New Book!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
   
   
  Opening Segment #3:
You Ask, I Decide...
Mad Mail
  Wednesday, October 7, 2009
 
 

   
 

  New!  Just sold entire position - Just sold Hewlett-Packard!   
           
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[Beginning of Cramer's verbatim comments for this segment...]

Jim:
         
Before we get to mail, I've got some homework to take care of...  Yesterday, Shawn from Indiana... clearly a very smart viewer, stumped me... making this guy look like a complete and total chump... or even a clown... along the lines of the great Bozo, if not Crusty... asking about Heartland Payment Systems Inc. (HPY).  So, as usual, when I get asked a question I can't answer, I went back and did the homework, in order to come up with a verdict on the stock.  Heartland Payment Systems is a credit and debit processing services company that also does payroll and check management for all kinds of merchants.  The stock got hit hard in January, when the company announced a security breach that happened in late 2008.  It looks like Heartland Payment could potentially be liable for the breach.  But the big unanswered question is, how much are they on the hook for?  Otherwise, it looks like business has bottomed as the company beat by a penny in its most recent quarter, and management indicated that business is stabilized.  Same store sales were down 9.7%...  everybody's got a comparison here...  uh, the worst in Heartland's history...  but the numbers were still slightly better in each month of the quarter, compared to the previous month.  Most important, merchant and volume attrition rates have become stable. 

So, where do I come down on this one?...

You know, it looks like a good story.  It's awful hard to rate this one though... because at least anything other than pure speculation... until we get more clarity on the kind of liabilities the company will face from the security breach.  Remember the way the stock market works, okay...  Money managers don't want to go worry at night about what stock they own.  They want to sleep at night.  They don't want to pick up the paper in the morning, and read about your company's liability for a security issue.  It's way too dangerous for most of them to own and, therefore, I don't think you should buy it either.

How about some email...  
 

Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name

HPY

14.08

Heartland Payment Systems Inc. (HPY)

See introductory comments from Jim, above, for:
HPY


VZ

na

Verizon (VZ)


Q:         Dear Jim,
You always seem bullish on Verizon. I know it has a good dividend, but the stock value never seems to move much. I have owned it for several years and am hoping it may claw its way back up. Do you think it has much hope, or should I just sell and buy something else with more
tsunami potential?
- Martin in Massachusetts


Jim:      Martin, if you want
tsunami potential, it is not the stock to own. I admit to that. Apple (AAPL) is a better stock to own in this situation. You know I had Tessera Technologies Inc. (TSRA)... that's a better way. What I like about Verizon is I do like the yield. They're paying you to wait for when the corporate business turns around. In the meantime, I think it's well run. I've been saying either Verizon or AT&T (T) for that good yield. And, when things get better in the economy, they will go up. But neither is a good tsunami play versus Apple. But everybody keeps raising their earnings estimates, as predicted.


AAPL

na

Apple (AAPL)


See VZ comments above for:
AAPL


TSRA

na

Tessera Technologies Inc. (TSRA)


See VZ comments above for:
TSRA


T

na

AT&T (T)


See VZ comments above for:
T


FCX

na

Freeport-McMoRan (FCX)


Q:         Hi Jim,
My question is about metals. Gold is crazy high while silver is on the rise. If you believe analyst projections, copper is the next hidden gem in metals. But they've been wrong before. So what do you think about investing in copper, and how should we do it? Thank you for all your insightfulness and looking forward to hearing your response!
- Carolyn in Boston


Jim:      Alright, Carolyn... I want to distinguish that silver and gold are precious metals... silver's got some industrial uses... gold, obviously, has jewelry uses. But those are not commonplace uses, in the sense they're not building blocks for houses or building blocks for buildings. That's what copper is. Copper is purely an economic play, particularly a Chinese play. 30% of the copper in this world is used by China... only 10% by the United States. So I regard it as a China play. If you think China is going to continue to be strong, then you should own FCX... Freeport... that's the best copper play. I don't, at this level, want to own it. I'd like to wait for a pullback.


STD

na

Banco Santander SA (STD)


Q:         Cramer,
In
Watch TV and Get Rich, you stated how Latin America is always a trade because that's how the big guys view it. Does that still hold true? Thanks and keep up the energy!
- Mark


Jim:      Mark, it sure did... Once again, Latin America got much harder hit than the rest of the world. It bounced back faster, which is terrific... one of the reasons I've been saying Banco Santander is good. But, most important, thank you so much for the kind words. In the next book, Getting Back To Even, I show you everything I did at my hedge fund. I've never revealed most of the stuff... It's harder, but it's what you need if you want to get back to even.



▼   ▼   ▼   ▼   ▼

[verbatim recap]

[end of segment]


Read Jim's next Segment here  

Market Results today:

Dow:  - 6

Nasdaq:  + 7

S&P 500:  + 3

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here...

 
 
 
   
 

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