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Cramer's Take on Headline Stocks: April 27 - 7249 views
By Stockpickr Staff
Posted on April 27, 2009
In spite of the spine-flu panic on Monday morning, major indices were in the green, with the Dow lately up 0.5%, the S&P 500 up 0.2% and the Nasdaq up 0.2%.
Travel stocks were falling, though, with Carnival (CLL) down almost 10% at midday on Monday, Marriott (MAR) down 2.9% and JetBlue (JBLU) down 7.7%.
On the other hand, pharma stocks, particularly those that produce flu-related products, could get a let up from the virus scare. Gilead (GILD) was recently up 3.7%, and GlaxoSmithKline (GSK) was up 6.6%.
In other news, Verizon (VZ) beat estimates in its first quarter, reported adjusted profit of 63 cents a share (analysts expected 59 cents) and sales of $26.6 billion (analysts expected $26.3 billion). Qualcomm (QCOM), on the other hand, lost $289 million in its second quarter. Revenue fell about 6% to $2.46 billion compared with an average estimate of $2.35 billion.
With this in mind, we thought we'd take a look at some of the stocks making headlines on Monday and see what Jim Cramer's had to say about them lately.
These stocks could be in the news for a number of reasons. Some require immediate attention; while others may not. Regardless, it never hurts to hear what Cramer (or any of the other professional investors on the site) has to say about them. The key is to gather as much information as you can in order to make the most informed investment decisions you can.
In a recent post to his RealMoney blog, Cramer had this to say about tech stocks:
"Apple (AAPL), Research In Motion (RIMM), Amazon (AMZN) and Google (GOOG). Every one a great quarter. Every one with tremendous economic sensitivity, and it didn't matter.
"Think about it, after all of the iPods that have already been sold, how could Apple have an upside surprise in iPods? I attribute it to great new models that are must-buys. The iPhone is obvious. Everyone I know has one or wants one. It is a phenomenon with great advertising and fabulous buzz.
"Or Amazon It does just get better and better, with easy use hopping, better auctions than eBay (EBAY) and a new product that is universally loved, the Kindle. The company is just so well run that you marvel at its efficiency and how much money it can make on selling goods that, again, are not necessities.
Research in Motion has the product that could be deferred for both personal or office consumption. Yes, BlackBerry is loved, but you can do without the new iteration. It looks like people can't.
"Google is an ad-supported entity. Ads go down every quarter. Look at that McClatchy (MNI) number last night. It was ghastly, ads down 30% and not all of that paper's towns are in recession/depression. I know The Wall Street Journal says that there could be a bidder for The New York Times Co. (NYT), but it won't be because of a potential turn in the ad business. Google is sucking all of the business out of everyone, and it was never dependent upon car ads, the mainstay of print and video.
"Everyone's cutting back ad spending, except when it comes to Google.
"These are amazing stocks. They have defied all economic pressures. Can you imagine what they can do when business gets better?
"I do not know many champions of these stocks. They have moved too much, people say. Their gross margins are peaking, people say. The analysts are all scared of them.
"Does that sound like a recipe for stocks that are headed down?
"These stocks have been the tells since the beginning of this move. I do not see why they need to be sold, as they are like industrials that are lean and coming out of a depression.
"I think things can only get better from here, because if we get any sort of cyclical growth on top of the secular trend, then the multiples are way too low and the stocks not high enough."
For more of what Cramer's had to say about stocks in the news, check out the Cramer's Take portfolio on Stockpickr.
(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned Qualcomm and Gilead for his Action Alerts PLUS charitable trust.)
Who's on Stockpickr Answers? http://www.thestreet.com/author/1005249/david-peltier/all.html " target="_blank">David Peltier will be on Stockpickr Answers on April 23 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.