It’s been a while since we covered Jim Cramer on CNBC’s MAD MONEY, probably for multiple reasons other than many of his shows seemed to be taped educational pieces. But tonight after the close, Cramer gave a rant that actually makes sense as far as trading is concerned. He was showing how the woes of Greece and the sovereign debt yields there are not really a problem for many key stocks that were too weak on great news. He highlighted 7 bits of great news in stocks that were overshadowed by Greece and its financial woes, but in stocks that recovered handily as the European markets closed and as US investors decided to focus on our own news.
These were Bed Bath & Beyond, Inc. (NASDAQ: BBBY), The TJX Companies, Inc. (NYSE: TJX), Goldman Sachs Group Inc. (NYSE: GS), EOG Resources, Inc. (NYSE: EOG), Wynn Resorts Ltd. (NASDAQ: WYNN), Ross Stores Inc. (NASDAQ: ROST), and Target Corp. (NYSE: TGT). Cramer may have skipped over a few key issues as immaterial that are very material, but there is also a trader’s notion to consider for ideas when stocks and sectors do not act on good news because of unrelated issues in the short-term as we covered today in our own Retail Business Daily piece this afternoon.
Bed Bath & Beyond, Inc. (NASDAQ: BBBY) had what Cramer said was “a killer quarter” with blowout earnings. He said this opened barely up and then went south before turning and running up 4% to over $46…
The TJX Companies, Inc. (NYSE: TJX) was one that Cramer said “massively raised guidance” after 12% comparable store gains.
Goldman Sachs Group Inc. (NYSE: GS) is one Cramer has long loved and it ran from around $175 at the open up to around $179 after the European markets closed. He even went as far as saying Greece has nothing to with Goldman Sachs (very arguable) but that Goldman Sachs knows how to have predicted Greece’s woes and probably makes money on it.
EOG Resources, Inc. (NYSE: EOG) is a play that Cramer said is changing from gas that has nothing to do with Greece either. This one opened around $104 but went to $107 after traders forgot about Greece.
Wynn Resorts Ltd. (NASDAQ: WYNN) was one that Cramer said was given a huge UBS target upgrade on. This barely rose and opened around $81 before it ran to $85 as traders forgot Greece and ran into the strong stocks.
Ross Stores Inc. (NASDAQ: ROST) was one that Cramer said guided up earnings about 20% from its previous targets which opened flat today and ran about $1.00 after Greece’s woes went in the rear view mirror.
Target Corp. (NYSE: TGT) is one where Cramer said it is “finally getting it together” and posted a huge guidance raise, also noted in our Retail Business Daily. Cramer noted how this was unchanged at the open and recovered about $1.00 as the Greek news faded and as European markets closed.
Many of these stocks were covered in our own Retail Business Daily today and that showed exactly why so many of the companies did not run up on what sounded like great news. There are two sides to Cramer’s rants tonight.
First is the problem with his points. Cramer did not really admit anything about these “eye opening results” being so stellar was because the March 2009 period used as the comparison was the peak of the panic selling and a time when shoppers were trying to buy things like non-perishable food, gold, bullets, and water in case we went into the abyss. And Cramer omitted the notion that while Greece as a standalone issue may be the tip of the iceberg in the financial world over governments, budgets, credit quality, and a few hundred other macro-economic issues. There is also the issue that many of these stocks have seen major rallies in 2010 and even larger recoveries through 2009. When these are going through 52-week highs and have seen such exaggerated gains, one of the puzzling reasons that they aren’t running as much is easy to see. Investors in “the new normal” do not want to chase what has already gone through the roof and into the stratosphere.
But there is a positive take here. Tonight was not about stock picks. These were geared to be shown as examples of what to look for on days where international macroeconomic news (and perhaps macroeconomic noise) gets in the way of good news. The mission here was not about these seven stock but on how to spot others and when to buy them based upon the stock fundamentals rather than over the international noise.
Longer-term may be a different issue, but money is money and many of these did show significant recovery moves on an intra-day basis.
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JON C. OGG