Work the Tape Just Like Jim Cramer
Are you working it? If you want to bend it like Jim Cramer you'd better be.
"My knowledge is the same as your knowledge. My sources are the same as your sources; the publicly traded documents, the conference calls, and the interviews here on the show," said Jim Cramer.
The difference is that Cramer is a pro, who knows exactly what to watch for – and then how to make money as events unfold. Following are a handful of recent developments and an explanation of what a shrewd investor like Jim Cramer took away from them.
Although Cramer said there was little in the Disney release that was unexpected, he added that the conference call contained a little gem from which you could have profited.
"Disney CEO Bob Iger endorsed Netflix as a preferred way to distribute old content," said Cramer.
"As I listened, I realized that Iger needed to figure out how to monetize older properties on the web, not just in old-fashioned hard copy video. And he found Netflix to be the ideal partner for Disney. It's why I suggested this morning that people buy Netflix at the opening of trading. Bingo, a $175 stock goes to $184 and you are free to ring the register," Cramer said.
Earlier this week 3M boosted its dividend by 7.6% and approved a $7.5 billion dollar buyback.
Yet the Street didn't seem to care initially, expecting that 3M had been such a steady- eddy stock, it was somehow baked in already.
"To me the Street expected nothing from a stock that had been a long-term underperformer," said Cramer.
But the complacency was a mistake.
Although shares opened lower on Wednesday, had you been nimble and bought right at the open, you would have ended the day with a gain of more than 1%.
In an interview on Tuesday's Mad Money, comments from Allergan CEO David Pyott may have provided the stock market equivalent of a gold mine.
"You see, he explained to us that Allergan has not just one new drug the Botox aided incontinence fighter, but the possibility of a second approval, an inhaled migraine fighter that his company now owns 100% of thanks to its pending purchase of MAP Pharmaceuticals," Cramer said.
Also, the usually conservative Pyott agreed with Cramer's observation that the fact that his company guided higher meant that he was more bullish than usual.
"His readiness to agree with that statement gave you a fabulous trade, as Allergan opened at $106 and immediately went to $108. You can hold on to it up here, but two bucks is a good day's work," said Cramer.
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Earlier this week, Chipotle sold-off after it reported same store sales that weren't so hot. Traders dumped the stock where it opened at $305.
However had you listened to the conference call, as Cramer did, you would have learned that Chipotle was considering price increases.
By the end of the session the Street had caught on and shares popped 5%.
On Tuesday's Mad Money broadcast, Cramer talked with Eaton CEO Sandy Cutler.
"Amid his comments, Cutler mentioned that from Eaton's perspective, China had gotten better," said Cramer. "That's something to file away as you look for the next opportunity to play China."
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