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Cramer's Take on Top-Searched Stocks - 6512 views
By Stockpickr Staff
Posted on March 15, 2009
What a difference a week can make! The S&P 500 gained 10% in what was the strongest week on Wall Street since November.
Friday was a good day for health care stocks, with Merck (MRK) gaining 14% after being upgraded by an analyst. The blue-chip drug manufacturer got a boost on new drug trial data out from Schering-Plough (SGP), a company it is trying to acquire. Other big health care movers included Johnson & Johnson (JNJ) and Pfizer (PFE).
Despite the big move in the markets this week, investors still want to know if we've seen the bottom. Will the market continue to recover?
With this in mind, we thought we'd take a look at some of the stocks people have been searching for on TheStreet.com and see what Jim Cramer's had to say from 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 Goldman Sachs (GS):
"I'm rooting for Goldman Sachs to do a giant equity offering. I never root for equity offerings from my stocks. Ever. But with Tim Geithner right now saying that he would be 'pleased' to get the TARP money back and with TARP money able to be repaid with money raised from new equity, we want this non-dilutive above-book-value deal.
"You have to understand that while every company would like to pay back TARP, there are real issues here beyond the desire to free oneself of the government as a preferred shareholder. The chief one is that you don't want to 'embarrass' the government. Putting the money back to the government is thought of as being an insult to Treasury by some of these bankers -- trust me, I know this from background talks. I believe that Geithner's comments just now green-light the return.
"You can only imagine what bank people would want to put their money in: a bank that needs government help to stay afloat or a bank that is strong enough -- like the JPMorgan (JPM) bank of old -- to say, 'We are in such great shape that we don't need to have that expensive preferred dogging us.'
"Remember, given that Goldman Sachs has no mortgage exposure, given that it is more of an agent and adviser bank, and given that it is a home for hedge fund money -- and will be a mecca if this happens -- it could be an immediate earnings per share bumper if it occurs.
"This week proved that the company continues to gain share in M&A -- it advised CV Therapeutics (CTVX) in its takeover by Gilead (GILD) and was also involved in the deal between Merck and Schering-Plough. Goldman remains the advisory of choice for big institutions, and because most of its competition has either scaled back or left the business, the company will continue to dominate.
"Goldman's stock has rebounded mightily. It accurately predicted that big steaming loss the company had.
"I think it is accurately predicting the future now."
For more of what Cramer's had to say about Friday's top-searched stocks, including Mosaic (MOS), AeroVironment (AVAV) and U.S. Steel (X) 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 Gilead, Goldman Sachs and JPMorgan for his Action Alerts PLUS charitable trust.)
Who’s on Stockpickr Answers? http://www.thestreet.com/search/result.html?topicSearch=Eric+Jackson " target="_blank">Eric Jackson will be on Stockpickr Answers on March 16 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.
P.S. Where is Jim Cramer putting his own money? Take a free peek at his personal portfolio to see all his buys and sells by clicking here. When you do, Jim will also send you exclusive email alerts telling you everything he’s about to add to or shed from his Action Alerts PLUS portfolio -- before he makes his trade.