Cramer thinks that Best Buy and Circuit City are proving that the Consumer is spending like crazy when you cut prices. He had a fairly long video on the web this morning.
Cramer slammed Circuit City (CC) because it is unbelievable how much they are losing in TV’s because of their open return policy. (As I noted myself yesterday there is probably a preceived floor out there because of Private Equity bid in the past that was rejected. Please don’t takle that as a “The bottom is in” because the stock has to shake some more people out. A new buyer could come in and refuse to the TV plan and cut that off at the source after pointing out how the consumer is taking advantage of it. The margin issues arent going away either, but the company needs to get their act together. It is is till pretty ludicrous that the entire street research teamn as a whole wasn’t able to factor this in because they are a de-minimus reverse proxy for what is going on at Best Buy…If Best Buy has a cold, Circuit City has lupus). Cramer is still psotive on Bext Buy (BBY) stock evene after the recent woes.
Cramer also noted that even a horrible PPI and no good earnings moves didn’t stop the market from staying up. To him this is end of year buying and sellers are finished. The buybacks have taken much stock out of market when fund managers have to show they aren’t underexposed to the stock market. In Oils Cramer was still positive on Exxon (XOM). Tech is one that you should not miss and he said he’d buy Apple (AAPL) at $86 here and he’d buy Oracle (ORCL) in here. Cramer even said he’d wait for a pullback on FedEx (FDX) here and then buy it.
Cramer said the following earnings estimates are too low: Altria (MO), Colgate-Polmolive (CL), and P&G (PG). Cramer has 3 themes he is still positive on:Toyota (TM), NYSE (NYX), and Goldman Sachs (GS). He is still canning the two upgrades on Ford (F) as far as common stock, but you could play it via the CONVERTIBLE deal from last week. Cramer is also staying positive on bank of America (BAC). Cramer also positive on the VCI deal where Valassis is acquiring ADVO. Those are the names he said would be his Focus names between now and Friday.
Jon C. Ogg
December 20, 2006
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