A daily recap of
Mad Money w Jim Cramer
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Lightning Round
3.23.06
Bullish:
| SBUX (STARBUCKS CORPORATION ) | OXPS (OPTIONSXPRESS HOLDINGS, INC. ) | TEVA (TEVA PHARMACEUTICAL INDUSTRIES LIMITED) | BWNG (BROADWING CORPORATION ) |
| LVLT (LEVEL 3 COMMUNICATIONS, INC. ) | Q (QWEST COMM INTL INC) | BAM (BROOKFIELD ASSET MGT) | BRCD (BROCADE COMMUNICATIONS SYSTEMS, INC. ) |
| VLO (VALERO ENERGY CP) | AVP (AVON PRODUCTS INC) | BMD (BIRCH MTN RES LTD) | BHP (BHP BILLITON LIMITED) |
| A (AGILENT TECH INC) | AEOS (AMERICAN EAGLE OUTFITTERS, INC. ) |
Bearish:
| BBI (BLOCKBUSTER INC) | MOVI (MOVIE GALLERY, INC. ) | BNT (BENTLEY PHARMACEUTIC) | ISRG (INTUITIVE SURGICAL, INC. ) |
| EPEX (EDGE PETROLEUM CORPORATION ) | WEN (WENDYS INTL INC) | IVAC (INTEVAC, INC. ) | WNR (WESTERN REFINING INC) |
| GDT (GUIDANT CORP) | WAT (WATERS CP) | KEP (KOREA ELECTRIC PW CP) |
view todays stock summaries here
Home
ATTENTION!!!
(Cramer talks about after-hours trading)
"There are some
things you cannot do. There are times when you won't make
money. When you get beaten.
You cannot trade stocks after hours. Last Tuesday, Bristol-Myers Squibb (BMY) demonstrates my point perfectly.
The news came out on 4:30pm on Tuesday that they were settling with Apotex over this lawsuit challenging their Plavix patent - the biggest drug they have.
Do you know that, by 4:33pm, the easiest money had been made? You think you can go into the wild west, in the after hours trading, and beat the cowboys out there. You just can't.
There are guys out there. They are specialists, they are sharpshooters.
Sometimes you just can't win. If you try to buy after hours, right when the news comes out, I think you'll lose. And the fastest money guys will always beat you to the punch.
If you want to buy BMY after the Plavix settlement, you wait! Hey, maybe even wait a week or two for some weakness, and then buy. Otherwise the professionals will eat you alive.
So, here's the bottom line: very, very few people have what it takes to buy stock after hours and make money.
They are professionals. Please! Please! Please! Do not try to beat them. Just wait a week or two for some weakness, and then buy. Because these guys - they're the real gunfighters and they'll blow you away if they have the chance. I just don't want you to lose money and mess yourself up if you don't have to!"
You cannot trade stocks after hours. Last Tuesday, Bristol-Myers Squibb (BMY) demonstrates my point perfectly.
The news came out on 4:30pm on Tuesday that they were settling with Apotex over this lawsuit challenging their Plavix patent - the biggest drug they have.
Do you know that, by 4:33pm, the easiest money had been made? You think you can go into the wild west, in the after hours trading, and beat the cowboys out there. You just can't.
There are guys out there. They are specialists, they are sharpshooters.
Sometimes you just can't win. If you try to buy after hours, right when the news comes out, I think you'll lose. And the fastest money guys will always beat you to the punch.
If you want to buy BMY after the Plavix settlement, you wait! Hey, maybe even wait a week or two for some weakness, and then buy. Otherwise the professionals will eat you alive.
So, here's the bottom line: very, very few people have what it takes to buy stock after hours and make money.
They are professionals. Please! Please! Please! Do not try to beat them. Just wait a week or two for some weakness, and then buy. Because these guys - they're the real gunfighters and they'll blow you away if they have the chance. I just don't want you to lose money and mess yourself up if you don't have to!"
Home
"I still think there's a lot of money to be made in tech. Especially in semiconductors - in chips!
But you need to think harder, and work harder, to get that money now.
In the old days, if I told you to go and find the semiconductor money, you'd just go and buy yourself a little Intel (INTC), and make yourself some serious cash.
But INTC, I'm sorry to say, is no longer sitting on top of the world. I think it's going to miss its qtr. Big! Intel is not the way to play the chip sector anymore.
Until INTC gets its act together, that co. Needs to be treated like a thing a thing of the past; I am no longer and Intel-aholic.
After INTC, we had Broadcom (BRCM)! And we had marvel (MRVL)! Now, if you had bought these guys when I anointed them, you could have made yourself some serious mad money.
I'm not saying these two are done. Oh, no, no, no! But I'm not doing a 'mon-back on them any more. You know why? Because there are now better opportunities!
These two chip co.s have made their runs. The easier money is in, and that means it's time for you to find leaner pastures.
So, how do we anoint the next semiconductor king? I've always been a fan of the 'break-stuff-open-and-look-inside' method.
When you bust open gadgets, there is money inside, metaphorically speaking.
This hear (he holds up gps handheld device) is one of Garmin's (GRMN) new g.p.s systems, busted open.
You'll find a chip from SIRF technology (SIRF). SIRF is the undisputed leader in gps chips. The more widely adopted gps becomes, the more money you could make if you own SIRF!
So, do I think you should buy it? Buy, buy, buy! But, only after you do your due diligence, and only if you're willing to be patient and disciplined when you buy the stock. That means waiting for weakness in SIRF. It means gradually building a position over time.
Because, as I say in Jim Cramer's real money: sane investing in an insane world., buying all at once is the sin of arrogance!
Now, let me tell you why I think you should buy SIRF...
Gps used to be too expensive for the common man. It's still too expensive for the common man, but it's gotten cheaper.
Whereas g.p.s. used to be for the upper class, it's now cheap enough not for the members of the middle class, but for the upper-middle class, who call themselves middle class, because of America's weird reverse pessimism, or maybe out of modesty. But I think it's that they're embarrassed to have money.
We don't play it like that on Mad Money. We love money on this show! We love it!
I think these people are now going to spend this money - money that they're ashamed to have - on g.p.s. systems for their cars.
The cheaper car systems should help SIRF.
You're also going to see more g.p.s. systems in cell phones. Sirf sells to Nextel, sk telecom, Motorola, lg. Right now, Qualcom (QCOM*) leads the field in terms of market share for cell phone-based g.p.s.
I'd love QCOM* if it was a person, and not a stock. But it's not a pure play on g.p.s. which is really what I'm looking for here. QCOM* is a member of the booyahcracy. That's a term I'll define for you some other time.
QCOM* and Sirf make money because the guys who make handsets want to make more money per phone they sell. And they do that by including a lot of unnecessary, ancillary features, like videos, like cameras, and like g.p.s. systems.
Cell phones make up just 18% of SIRF's revenue. But I've seen some reports that suggest that this chunk of business could grow at a 50% clip. That's magnificent!
They're going to have to duke it out with QCOM*. I know, that's going to happen, and it will not be pretty, but I think this market should grow fast enough that there should be room for sirf.
The bottom line!: the next chip co. That you need to make money... the next BRCM! The next MRVL! I think it's SIRF!
I've anointed the new chip king: SIRF!"