Does it ever get old watching the lying sack of shit Jim Cramer and his discredited Wall Street Shill network CNBC get raked over the coals for their blatant propaganda and absolutely horrible investment advice?
A Brief History Of Jim Cramer’s Opinions On “Pillar Of Strength” Best Buy
Submitted by Tyler Durden on 01/16/2014 17:36 -0500
You really can’t make this shit up. From the funniest person on financial comedy TV (whose most memorable TV appearance will always be roaring that Bear Stearns is fine days before its collapse), here is his “opinion” on Best Sell Buy, entirely in his own words.
November 20: Jim Cramer opines on Best Buy:
Pillars of Strength in Retail
The homework doesn’t dovetail with the shares. That’s how I felt about the way Best Buy (BBY), Home Depot (HD) and Dick’s (DKS) traded in the wake of the earnings calls — because all three were basically in all-systems-go mode for suppliers.
Regarding Best Buy, it looks as if the tablet is the standout. I know that Apple (AAPL) has become a hated equity, but I keep hearing good things, so I can’t join the nitpicker mob. You did get a nice Chrome call-out for Google (GOOG), but that’s just icing on the Google lovers’ cake.
All three chain stores — Home Depot, Dick’s and Best Buy — are pictures of strength, not weakness. All three stocks should be bought, not sold, on share weakness, despite whatever the “action” says about how well the companies performed. They have performed superbly against both their fields and against retail in general.
Then the next day, November 21, just in case the message was lost:
Best Buy Co. Inc. Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on November 15, 2013. The news about tablets also bodes well for Best Buy, a company that has turned around its ailing retail position to once again become one of the stronger names selling technological products to consumers. Cramer said that retail stocks were especially well-positioned at the moment, and he did not neglect to mention Best Buy near the top of his list of retail all-stars.
Fast forward to today, following a 30% collapse in the stock price in one day. From TheStreet:
It really makes you wonder what went wrong when you see a company down 30% in a single trading session, TheStreet’s Jim Cramer said of Best Buy.
The co-portfolio manager of the Action Alerts PLUS portfolio said most analysts had been bullish on the stock, all the way into the upper $30s.
Uhm, just the analysts?
Those expectations were way off, Cramer said. The company reported sales fell 0.8% for the nine weeks ended Jan. 4, while analysts had expected growth and no real degradation in gross margins.
Cramer advised investors who want to buy the stock to wait until Friday because these types of violent moves tend to pan out over a two-day period.
So buy, buy, buy Best Buy at $40, but wait at $26? Gotcha.
And the piece de resistance comes from CNBC this morning:
Cramer said the electronics retailer needs a “big reset,” and that analysts erred in thinking the company could compete with online shopping outlets. He said the holidays were an “Amazon quarter.”
…
A steady stream of positive analyst notes before the busy holiday season helped set up Best Buy for its huge 30 percent drop Thursday, CNBC’s Jim Cramer said.
“Each day one came out and then another came out,” Cramer said Thursday on “Squawk on the Street.” “If they had all come out at once, the stock wouldn’t have been pumped to where it was. It was a serial rollout of positives.”
Wait a minute. It was precisely the “steady stream of positive analyst notes” that Cramer used to pitch as the buying catalyst in Best Buy just back on November 19 and as the reason why people should not sell the stock!!!
The people who are selling [Best Buy] don’t realize the power of the reiteration of [analyst] recommendations we are going to get in the next few days.
But… but… less than two months later it was this very reason that Cramer used as an excuse why the company sold off! It really isn’t… it doesn’t… it can’t… it makes no…
Aghhhh #Ref!
Summarizing it all below:
And now we eagerly await the sequel: “Get Poor Instantly”
Even many years ago when I watched that channel, I turned it off when this ginsu selling nitwit came on.
I googled “Jim Cramer” and all I get is a bunch of diseased penises.
Must be a problem with Firefox.
Gotta love it when NBC sub channels start feasting on each other.
He is about as accurate as J Hussman PhD ( piled high and deep).Since I am feeling benevolent today may I offer you all a investment tip. Don’t take investment advise from Joos or Univ of Mich grads , and never from both.
Six ratios say this market is very overbought
Opinion: The time to build a larger cash position may be near
By Mark Hulbert, MarketWatch
The U.S. stock market is more overvalued than it was at the majority of the past century’s peaks, according to six well-known valuation ratios.
That doesn’t mean the bull market is coming to an end, of course, since some past bull markets were even more overvalued when they topped out. Furthermore, no two market peaks behave the same way.
Nevertheless, the evidence suggests that risks are high. You may want to consider selling some of your stock holdings and building up cash.
To compare current valuations to those that prevailed at past market tops, I relied on a comprehensive list of past bull-market tops compiled by Ned Davis Research. The list is based on a set of criteria focusing on the speed, magnitude and length of market movements.
According to the firm, there have been 35 bull-market tops since 1900. The Dow Jones Industrial Average lost an average of 31% in the bear markets that followed.
Here’s how the market stacks up to past market tops according to these six valuation ratios.
1. Price/earnings ratio. Calculated by dividing stock price by earnings per share, this is perhaps the most widely followed of all valuation ratios. Based on the previous 12 months’ earnings, the S&P 500’s current P/E ratio is 18.6, which is higher than those that prevailed at 24 of the 35 bull market tops since 1900. (Data before 1957 are for the S&P Composite Stock Index, since the S&P 500 didn’t exist yet.)
2. Cyclically adjusted P/E ratio. This is the version of the P/E championed by Yale University Professor Robert Shiller, the recent Nobel laureate in economics. It is calculated by dividing a company’s stock price by the average of its inflation-adjusted earnings of the preceding decade. For the S&P 500, this ratio currently stands at 25.6, which is higher than what prevailed at 29 of the 35 tops since 1900.
3. Dividend yield. This is the percentage of a company’s stock price that is represented by its total annual dividends. Since this yield tends to fall as prices rise, and vice versa, the market should register some of its lowest readings near its tops. The S&P 500’s yield currently stands at 2.0%, which is lower than the comparable yields that prevailed at all but five of the bull-market tops since 1900.
4. Price/sales ratio. This is calculated by dividing a company’s stock price by its per-share sales. Though it is lesser known, it still is championed by many investors because it is based on data that are less susceptible to manipulation than earnings. For the S&P 500, the price/sales ratio currently stands at 1.6, which is higher than the comparable readings that prevailed at all but two of the bull market tops since 1955, which is how far back data are available.
5. Price/book ratio. This is another lesser-known valuation indicator, calculated by dividing a company’s stock price by its per-share book value—an accounting measure of net worth. For the S&P 500, this ratio currently stands at 2.7, which is higher than all but five of the 23 bull-market tops since the mid-1920s, which is how far back data are available.
6. “Q” ratio. This indicator is based on research conducted by the late James Tobin, the 1981 Nobel laureate in economics. It is similar to the price/book ratio, except that book value is substituted by the replacement cost of assets.
Mr. Tobin thought this to be superior since he considered replacement cost to be better reflection of a company’s net worth than book value, which is based on assets’ original cost — no matter how far in the past those assets were acquired.
The Q ratio currently is higher than what prevailed at 31 of the 35 past market tops, according to data compiled by Stephen Wright, an economics professor at the University of London, and Andrew Smithers, founder of the U.K.-based economics-consulting firm Smithers & Co.
While each of these valuation ratios has its detractors, it is noteworthy that all six of them are currently telling a similar story. It is also worth noting that a particularly bearish message is coming from the two that, according to Messrs. Smithers and Wright, have the best historical track record — the Q ratio and the Shiller P/E.
If you agree with this bearish assessment, you should be thinking of ways to build up cash in your portfolio. At a minimum, you shouldn’t automatically reinvest the proceeds when you sell any existing stock positions.
Market timing is notoriously difficult, however, so you might choose to stick with your stock positions through thick and thin. In that event, you could still begin to shift your stock holdings toward sectors that historically have performed the best near the end of a bull market.
According to Ned Davis Research, those sectors tend to be consumer discretionary and consumer staples. Two exchange-traded funds benchmarked to those sectors are the Consumer Discretionary Select Sector SPDR (NAR:XLY) and the Consumer Staples Select Sector SPDR (NAR:XLP) . They both charge annual fees of 0.18%, or $18 per $10,000 invested.
Here are the stocks in these two sectors that are most popular right now among the advisers tracked by the Hulbert Financial Digest who have beaten the stock market over the past 15 years: satellite-television provider DirecTV (NASDAQ:DTV) ; entertainment giant Walt Disney (NYSE:DIS) ; Kimberly-Clark (NYSE:KMB) , the consumer-products company; fast-food giant McDonald’s (NYSE:MCD) ; drug distributor McKesson (NYSE:MCK) ; PepsiCo (NYSE:PEP) , the beverage company; and Philip Morris International (NYSE:PM) , the cigarette manufacturer.
Gold Daily and Silver Weekly Charts
Gold and silver had a little spirit in them today, with gold closing higher than its 50 DMA. The 100 DMA is a more important target, and even more important resistance above that.
But the structural buy signal is in place. Now we must see if the chart formations and price confirm it. In almost any other market I would say it was almost a ‘lock,’ but in the precious metals the truth always seems elusive, as if by intent.
Analysts purportedly acting for gold producers and suppliers constantly talk it down with a studied and persistent negativity, economists drop all pretense of thought to engage in simple mudslinging and propaganda, governments hide their own buying and leasing, large banks take huge positions thereby bending the rules of the exchanges with abandon, simple facts underlying supply and demand are treated as state secrets immune to audits, and disinformation campaigns ebb and flow.
Reading the cases made against ‘the Aldrich Plan’ in 1912 for a Third Bank of the United States, euphemistically later to be known as The Federal Reserve System, strikes a note when we see what has been happening over the last twenty years, in the rise of perverse and predatory banking, in the service of unfettered capitalism.
Yes it does sound like a bit much, conspiratorial and all that. And yet what else are we to think, when looking at the events which have unfolded before and after this most recent financial crisis, in which the perpetrators are bailed out, and walk away with millions, while the relatively innocent are forced to bear the burden of their recklessness and greed? And the political system is increasingly grown corrupt by big money, with record low approvals from the public, for whom they no longer have any decent regard?
The will to the power of creating money and distributing it as you will is the idolatry of our age, and woe to the careers of those who fail to offer obeisance at its altar. What a festival of intrigues and vanities. And what rough beast, its hour come round at last, slouches toward Bethlehem to be born?
How can one not be interested in it? It is the very fulcrum of our age.
JESSE