Jim Cramer, the stock guru of CNBC, had this to say about Yum Brands on August 13, 2015 after bad news from China:
Wall Street expectations jumped the gun on Yum Brands, but as share prices pulled back on disappointing July sales in China, now’s the time to buy the stock, CNBC’s Jim Cramer said Tuesday.
“My charitable trust is buying today. Why? Because I think that the expectations have gotten too far ahead.”
“I think it’s temporary. I want to go back to what Novak promised. He promised that by Q4, the drama would draw to a close. We’re not in Q4 yet.”
That was less than two months ago. The stock was selling for $84 on the day he said he was buying. He isn’t a stock genius for nothing. On his Tuesday night show before the earnings were released he called Yum a bargain, even though it had a PE ratio of 39. Yum reported their third quarter results last night and they were disastrous. They missed earning estimates by a mile and drastically reduced their year forecast. The stock plummeted by 19% in one day to close at $67.67.
For those keeping track, anyone who followed Cramer’s sage advice has lost 20% of their investment in 8 weeks. That’s an annualized return of NEGATIVE 130%. This guy should have a TV show.
His individual stock calls are almost as good as his market calls. How could anyone take this bozo seriously?
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