Sell Block for Thursday, March 29
Syntax-Brillian and its CEO, Vincent Sollitto, have got Cramer REALLY down. Sollitto was on the show just the other day talking up his company as a great way to play the high-definition TV boom. Yeah, well, it turns out he used that opportunity to put money in some of his biggest shareholders’ pockets.
The very next day Sollitto announced that he raised $15.5 million dollars through the issuing of over 2 million shares at $7.32 a share. Sollitto made a deal with those big shareholders to sell them the stock at a discount and then used Mad Money to make it even more lucrative for his buddies. The stock goes up after the interview, and Home Gamers are excluded from enjoying the discount prices. Consider this guy an exile from Cramerica.
On a more positive note, Cramer revisited a few companies he recommended as part of his 4% rule. AT&T is up four points since then, and BP is up five. Right now, Verizon is cheaper because it hasn’t moved, and it’s just as good and has a higher yield. Schnitzel some AT&T, he says, because it’s too good to dump the whole thing.
As for BP, Cramer calls that a challenged company. He’d rather see you in a driller like Transocean rather than an integrated oil name, except for maybe Exxon Mobile.
Regular viewers will know that Vonage has been on the Sell Block forever, but now Cramer's changing his tune. "Down three it gets real interesting," he says, "but then again it's at $3.06, so that might not be much of a change after all."
Movado was Cramer's stock of the week, but then it ran 12%, and he said to be cautious and wait for a pullback. Well, it pulled all the way back to lower than where it started after offering lower guidance. "My half-bad," Cramer says.
Cramer also wanted to check back in on some of the IPOs he’d called. BigBand Networks had a great debut, he said, and he’d still buy it on weakness. Sourcefire is up to $17 and change from its $15 offering price. Cramer says he’d sell half for profits and let the rest ride.
Home Gamers might also remember Cramer telling them to stay away from Glu Mobile and Aruba Networks. Well, both are down after their IPOs and he still wants to you to steer clear. Clearwire was an IPO that he liked, but it was put into the hands of flippers who dumped the stock. But it’s on sale at its present range – $20 to $21 – so Cramer says it’s a buy. Cramer liked eTelecare, too, and that’s up from its open as well. He recommends investors take profits – you don’t want to get too piggish.
Jim’s charitable trust owns Transocean.
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