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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.
|
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 |
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.
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 |
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.
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▼ ▼
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[verbatim recap]
[end of segment]
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