Jim Cramer Blog

The administration has to present this as: If you vote against this, you want to kick people out of their homes, Jim Cramer said on Wednesday's Stop Trading segment on CNBC, referring to the government's proposed bailout plan.
Cramer offered his opinion on four financial stocks. AIG (AIG), he said, is a total loser. I think AIG would be down substantially if not for the reason you can't short.
He called Freddie Mac(FRE ) and Fannie Mae(FNM) interesting. Since you can't short them and since both companies - and particularly Fannie Mae - have portfolios that would benefit greatly from the government's plan, Cramer said, he can understand why some might see a rational for owning them and flipping them. But, he said, I don't want to buy any dollar stock.
People see potential for Washington Mutual(WM), too, he said. There's a lot of people who feel like the moment the plan gets in, there's going to be a premium bid for Washington Mutual. I think that's just ridiculous.
Moving away from financials, Cramer said that if the rules against offshore drilling are done away with and we actually open up our shores, Schlumberger's(SLB) a big win, not just Transocean(RIG). Transocean is the leader, he said, and Schlumberger will follow.
Published By TheStreet.com

Labels: AIG, American International Group, CNBC's Stop Trading, Fannie Mae, FNM, FRE, Freddie Mac, Jim Cramer, Stop Trading, Washington Mutual, WM

Epernay Condominiums in Saucon Valley, PA are now on the market. The development is located across the street from the exclusive Saucon Valley Country Club. This project is one of the last developable sites abutting this magnificent golf course. Its central location in the Lehigh Valley, PA and in the region makes these detached condos an excellent choice for any homeowner. Epernay is centrally located between New York City and Philadelphia with a drive to either city that takes about an hour.
The design of these detached condominiums is magnificent. No expense was spared with the materials utilized. The architect of the project is a known, respected, Architectural Digest published professional. His style is unique and rich. These condos were designed to have an old world European feel and finish.
Features Presented:
• 26 acres of land adjacent to Saucon Valley Country Club
• 34 custom single family detached condominiums
• Walking path meandering through development
• Large granite block curbing throughout
• European entry with stone bridge and tower
• Center square with gazebo and sitting area
• Stone and heavy aggregate plaster finish
• Courtyards off library areas
• Ludowici hand crafted old world roof tiles
• Open floor plans - Can be customized
• Oversized two car garage
• Designed by architectural digest published architect

For more information please visit our website at http://www.epernaycondos.com.

Labels: Epernay, epernay condominiums, epernay condos

Investors should take a hard look at their portfolios and make some sales tomorrow after today's huge rally, Jim Cramer told viewers. Cramer advised selling into any future rallies to free up cash for the declines that are most certainly ahead. Get into position for the next big sale, he told viewers. He said today's 410-point rally in the Dow was entirely due to rumors that the federal government is considering a resolution mortgage trust to begin buying up bad home loans in an effort to rescue the U.S. banking system. Cramer said a resolution trust will not only put a floor in the housing market but is far more effective and inexpensive than the current plan of nationalizing entire companies. He said the Federal Reserve needs to cut interest rates to 1% to spur growth and add liquidity into the markets. He again urged the re-instatement of the uptick rule, which is designed to prevent relentless short-selling of companies. And finally, Cramer said regulation is needed to stop the credit default swap activity that companies have been engaging in. All of these things, said Cramer, are what the markets need to finally put the housing and financial crisis behind us.
The State of Housing - Pulte Homes (PHM)
Richard Dugas, president and CEO of Pulte Homes, talked about the state of the housing market. Dugas said he still feels there's a ways to go before the housing market hits bottom. He said that while the situation is improving, there is still a lot of excess home inventory that needs to be worked off. On the upside, Dugas confirmed that deposit cancellation rates, which peaked in 2007, have moderated so far in 2008. For would-be homeowners, Dugas said now is a great time to buy a home, citing low mortgage rates and depressed home values that make owning a home more attractive than renting. When questioned about Pulte's financials, Dugas said his company currently has one of the best balance sheets in the industry, with over $1 billion in cash. With the housing market still underselling the growth rate and pent-up demand for homes building, Cramer and Dugas agreed that now may be a great time to buy a home and shares of Pulte Homes.
Published By SeekingAlpha

Labels: Jim Cramer, Mad Money, PHM

Fear, not facts or fundamentals, is what's driving this market, Jim Cramer told viewers. He warned that while the selling might not be over, investors will miss some opportunities of a lifetime if they stay too negative. The fear in the markets today reminded Cramer of the great market crashes on 1987 and 1990. However, citing President Franklin Delano Roosevelt, he told viewers that the only thing they need to fear, is fear itself. He said that while everyone is worried about the system and have no confidence in the system, ultimately the system will emerge again. In times like these, said Cramer, it's wise to return to the fundamentals and look for solid companies with good long-term outlooks. We are not a bankrupt country with bankrupt companies, he said. Keep your powder dry and wait for the opportunities to emerge. Cramer reminded viewers that after the crash of 1987, every stock on the most active list before the crash was higher a year later. He said that today is likely not the bottom for this market, but there will be a time to buy again soon. Don't stay negative forever, he said.
American International Group (AIG)
We are better off today than we were yesterday, Cramer told viewers. Despite the market's huge sell off, he took a moment to talk about what went right today. Cramer said that the surprise bailout of American International Group is big news for the markets. Yesterday, he said, we were worried AIG was going under. Today, we know it's going to be OK. Yesterday, we were worried about other banks failing as a result of AIG. Today, another one of the market's black holes has been filled and we don't have to worry as much. Now that the danger of AIG's failure is off the table, we don't have to worry about the mortgage insurance policies the company held. Cramer also said the SEC's announcement of new rules against relentless short selling is big news for the markets. He credited Chairman Christopher Cox with making a good first step to undo the damage caused by short selling and urged the Chariman to go one step further and reinstate the uptick rule, which requires a stock to tick up in price before it is sold short.
Published By SeekingAlpha

Labels: AIG, American International Group Inc., Jim Cramer, Mad Money, Mad MOney Recap

This is really a Franklin Delano Roosevelt moment, Jim Cramer said on Wednesday's Stop Tradingsegment on CNBC. We're only fearing fear itself.
He encouraged viewers to consider several potential factors that could be positive influences on the market, including the coordination of worldwide interest cuts, huge Chinese stimulus plans, a waiving of the private equity rules and the SEC's waving of rules on buybacks.
I am only trying to bring out things that could go right, because I've heard all day what could go wrong, he said.
Cramer, who owns Goldman Sachs(GS ) and Morgan Stanley(MS ) for his Action Alerts PLUS charitable trust, stood behind the two financial companies. I tell you that September calls on these positions will be rewarded for very little capital, he said.
Published By TheStreet.com

Labels: Goldman Sachs Group Inc., GS, Jim Cramer, Morgan Stanley, MS, Stop Trading

Gold prices exploded Wednesday -- posting the biggest one-day gain ever in dollar terms -- as fears of more credit market turmoil unnerved investors and triggered a flood of safe-haven buying.
Gold for December delivery rose as much as $90.40, or 11.6 percent, to $870.90 an ounce in after-hours trading on the New York Mercantile Exchange after jumping $70 to settle at $850.50 in the regular session. That was the biggest one-day price jump ever; gold's previous single-day record was a $64 gain on Jan. 29, 1980. In percentage terms, it was gold's largest one-day advance since 1999.
The huge rally came after the government moved overnight to rescue troubled insurer American International Group Inc. with an $85 million bailout loan. The Federal Reserve stepped in after AIG, teetering on collapse from losses tied to the subprime crisis and the credit crisis, failed to find adequate capital in the private sector.

Labels: Gold

Washington Mutual (NYSE:WM) is now officially on sale, with potential acquirers including JP Morgan Chase (NYSE:JPM). The Short Term PowerRatings for WM and JPM are 5 and 4 respectively.
SanDisk (NasdaqGS:SNDK) is the target of an unsolicited takeover bid from Samsung Electronics. Samsung has offered $5.85 billion for the company. The Short Term PowerRating for SNDK is 4.
Among the best performing stocks were those related to gold and mining. Barrick Gold Corporation (NYSE:ABX) was up nearly 13% on the day. Newmont Mining Corporation (NYSE:NEM) gained more than 9%. The Short Term PowerRatings for ABX and NEM are both 3.
Reporting earnings Thursday morning before the market opens, FedEx (NYSE:FDX) is expected to announce earnings per share of $1.21. The Short Term PowerRating for FDX is 5.
Shares of Morgan Stanley (NYSE:MS) fell more than 27% on Wednesday despite beating analyst estimates by more than 50 cents after the close on Tuesday. The Short Term PowerRating for MS is 7.

Labels: ABX, FDX, Hot Stocks, JP Morgan Chase and Co., JPM, Morgan Stanley, MS, SNDK, Washington Mutual Inc., WM

Shares of Wall Street firms Morgan Stanley and Goldman Sachs plummeted on Wednesday and Britain's biggest mortgage lender neared a sale in the latest signs of extreme distress in the financial industry.
Tuesday's surprise $85 billion rescue of insurer American International Group (NYSE:AIG) by the U.S. Federal Reserve did little to calm investors' nerves, and U.S. stocks dropped as much as 4.1 percent.
The White House said it was "concerned about other companies" while the U.S. presidential candidates struck populist tones, with Sen. John McCain blasting Wall Street's "casino culture" and Sen. Barack Obama stressing protection for mom-and-pop investors.
Shares of Morgan Stanley (NYSE:MS) and larger rival Goldman (NYSE:GS) fell as much as 43 percent and 27 percent, respectively, even after both reported better-than-expected quarterly earnings on Tuesday.
Source: AP

Labels: AIG, Amercian International Group, Barrack Obama, Goldman Sachs Group Inc., GS, John McCain, Morgan Stanley, MS

Falling crude oil prices continue to be a boon for airlines stocks with Delta Airlines (NYSE:DAL) up more than 23% and Continental Airlines (NYSE:CAL) gaining nearly 13%. The Short Term PowerRating for CAL is 4.
Morgan Stanley (NYSE:MS) reported quarterly earnings after the market closed on Tuesday, beating analyst's estimates by a wide mark.of more than 50 cents. The Short Term PowerRating for MS is 6.
Warning of weakness in global demand, Dell Inc. (NasdaqGS:DELL) shares were lower by more than 11% on the day. The Short Term PowerRating for DELL is 8.
In a potential change of heart, the Federal Reserve has said that it is open to a loan package to help struggling insurer, American International Group (NYSE:AIG). The Short Term PowerRating for AIG is 7.
Shares of Hewlett-Packard (NYSE:HPQ) soared by more than 6% on Tuesday as traders applauded the company's cost cutting plans - including the elimination of thousands of jobs. The Short Term PowerRating for HPQ is 5.
Third quarter profits for Goldman Sachs (NYSE:GS) fell by more than 70% the company reported on Tuesday. The Short Term PowerRating for GS is 6.

Labels: AIG, Amercian International Group, CAL, DAL, DELL, GS, HPQ, MS, Stocks to Watch