CNBC Stock Blog


  Monday, 23 Sep 2013 | 10:27 AM ET

Cramer: This automaker is a buy right now

Posted By: Paul Toscano
Cramer's Mad Dash: VNO & GM
Jim Cramer explains what to watch ahead of the open. Today Cramer takes a look at Vornado Realty Trust and General Motors.

With improving conditions in key markets and the announcement of a new deal to buy back preferred stock from the UAW, CNBC's Jim Cramer said that General Motors is an attractive bet for investors right now.

(More stocks: Cramer: 'Cult' and international stocks the places to be)

"I think GM is one of those stocks people need to remember," Cramer said on "Squawk on the Street" Monday. The company is focused on growing its business in Europe and China, Cramer said, areas that are showing signs of increasing strength.

In addition, GM announced on Monday that it had reached a deal to buy back 120 million of its preferred shares - about $3.2 billion - from the United Auto Workers retiree medical benefits trust. The buyout values the shares at $27 per share and the transaction is contingent on a debt offering by GM scheduled for Sept 30th.

(Read more: GM to buy back some preferred shares from UAW trust)

On the news and the improving situation in Europe and China, Cramer said that "General Motors is a buy here … Labor getting out, this is a great situation."

»Read more
  Thursday, 19 Sep 2013 | 11:36 AM ET

Cramer: Buy these ‘cult’ stocks through year-end

Posted By: Paul Toscano
Cramer: Buy these 'cult' stocks
Cramer points out some names with dedicated support for the rest of the year.

Investors should be generally cautious as the market surges toward new records, but several stand-out stocks are likely to end the year much higher, CNBC's Jim Cramer said.

"This is a remarkable moment, and people are willing to overlook a lot of stuff," Cramer said on "Squawk on the Street" on Thursday. "It's an up market. Maybe it shouldn't be, and I fear the [government] shutdown, but, wow. … I do think that you have got to be careful here—[the stock market] just had a very big move."

(Related: Cramer: This is the 'single most controversial stock I've ever seen')

A stock like Rite Aid may have more upside potential, but any run higher is likely limited, he said. It's better to "wait until things come down" before buying stocks that have made big moves recently, he added.

Cramer warned that despite many names' approaching overbought territory, a handful of "cult" stocks should continue their rally through the rest of the year, supported by a group of dedicated buyers with high expectations.

One such company is Tesla Motors, he said. "That thing is such a cult, I don't want to get in front of a cult." He also listed Netflix, Ulta Salon, Lumber Liquidators, Yelp and Tractor Supply as having similar support.

(Related: Cramer: Buying these stocks is like trading 'on quicksand')

"Those are the cult stocks of the growth momentum players. Do not get in front of a growth stock between here and year-end," he advised.

Cramer also said that international stocks are a good bet to weather the uncertainty generated by events such as the debt ceiling debate and a potentially overbought U.S. market. He listed United Technologies, Honeywell, 3M and Boeing because "these happen to be international companies that are located here."

One name Cramer said he "furiously" believes in and owns in his charitable trust: Facebook.

"I do think that Facebook is a real stock. A real company, a real stock," he said. "I think the monetization there is going to be great."

»Read more
  Wednesday, 18 Sep 2013 | 10:27 AM ET

Cramer: 'Most controversial stock' of my career

Posted By: Paul Toscano
Cramer: Apple, the 'most controversial stock' I've ever seen
With Apple's newest iPhone and an updated operating system, investors will have to wait and see how sales perform, Cramer said, adding that the company has been the "single most controversial stock" of his career.

Divergent market expectations and positive consumer reviews of the new iPhone have made Apple an increasingly controversial stock, CNBC's Jim Cramer said, but if demand for the new smartphone outpaces expectations, it could be a turning point.

"I've been puzzled over Apple," Cramer said on "Squawk on the Street" Wednesday. "I think the stock is very, very cheap. This could be a catalyst. We're starting to hear good things about demand. It will move the needle if they sell out."

Cramer said that personally, he was expecting to buy a new version of the iPhone, "These reviews are extraordinary, so you just go buy it."

(Related: For Apple, mum's the word on iPhone 5C pre-orders)

Opinions of Apple had been dampened recently, after the company didn't announce a major deal to expand into China and many analysts worried about "sticker shock" in the country over the iPhone 5C. However, he said that reviews of the device and software could reinvigorate both analyst and consumer enthusiasm.

As a result, Cramer said that "this has got to be the single most controversial stock I've ever seen in my career. You love the product … why isn't the Apple love there? The answer is because the institutions don't care for Apple anymore."

Much-loved stocks like Tesla, Netflix and Amazon are beneficiaries of the high regard from markets and as a result are relatively disconnected from the P/E multiple expectations you'd see for most companies, Cramer said. There is no "Apple metric" to set it apart from the pack, he said.

Cramer explained that for Apple, institutional investors are looking for a new product that will shake up markets and are concerned with year-over-year growth.

(More tech: BlackBerry unveils the Z30 as its new flagship smartphone)

However, he said that Apple is a "big value stock" and right now "it's very cheap." On top of the positive reviews from industry watchers, he pointed out that Morgan Stanley and Pacific Crest recently put out positive investor notes on the company, after last week's announcements and better-than-expected demand.

Cramer suggested that investors key off shipping information from UPS on Apple products, which in the past has been a useful early sign of demand.

(Related: Microsoft paying for Apple's next product cycle)

"The stock has been a very tough stock to own, but you need to see positive momentum in earnings and you need to see a new product," he added. "These reviews read like it is a new product."

»Read more
  Tuesday, 17 Sep 2013 | 10:23 AM ET

Cramer: Microsoft's dividend is a desperate move

Posted By: Paul Toscano
Cramer: Is Microsoft's new dividend necessary?
CNBC's Jim Cramer reacts to news that the software company is returning more cash to shareholders.

Microsoft's new dividend hike may be a desperate move by a company that has better strategic options, CNBC's Jim Cramer said Tuesday.

Microsoft announced a more than 20 percent increase in its dividend Tuesday and disclosed plans for a new $40 billion buyback. The quarterly dividend was raised to 28 cents per share, a 5 cent boost over the previous quarter. The dividend will be payable to shareholders on Dec. 12.

(Read more: Microsoft boosts dividend by 22%, sets $40 billion buyback)

"The dividend boost is substantial. You already have a nice dividend," Cramer said on "Squawk on the Street."

"[Microsoft CEO Steve] Ballmer just wants this stock higher so bad ... by any means necessary. ... I think that Ballmer doesn't want his legacy to be a $33 stock."

"Microsoft, as opposed to Apple, is doing everything. It's just that some of it isn't working so well," he added.

Cramer said that the move by Microsoft is a "quandary" and feels like a move of desperation from a company that "doesn't need to be desperate." Some speculation on why the move was made is that Capital Research, one of Microsoft's largest shareholders, was unhappy with the recent performance of the company.

"If the Cap Re guys are unhappy, then you did wrong. Plain and simple," he explained. "If they're unhappy, you respond to them."

Cramer's solution for the company, which he has been talking about for weeks, is to split it up to create value for shareholders.

(Read more: Cramer: 'It's time to break up Microsoft')

When asked whether the Microsoft dividend hike could be the first of several similar moves by large-cap companies into the fourth quarter, Cramer said, "I think you've got to" expect it.

He added that many firms are trying to do whatever they can to keep their stock price up, pointing specifically to companies in the pharmaceutical, chemical and commodity sectors.

(More investing: Big demand for small-cap stocks)

"These companies are not stopping. ... These companies are saying 'we are mad as hell about our stock price and we're not going to take it anymore,' " he said, and the result is dividend increases, acquisitions and strategic partnerships.

»Read more
  Tuesday, 17 Sep 2013 | 7:39 AM ET

Apple is now a no-growth 'value trap': Doug Kass

Posted By: Alex Rosenberg
Douglas Kass at the Reach poker tournament in New York.
Amanda Gordon | Bloomberg | Getty Images
Douglas Kass at the Reach poker tournament in New York.

Are Apple shares cheap? Now that they've fallen over 10 percent on the back of Apple's recent product launch, it seems to be a fair question. But even though Apple now has a lower price-to-earnings ratio than do slow-growth companies like Microsoft, Intel, or IBM, Doug Kass says the stock still doesn't present an attractive value.

"Apple has become a value trap," the founder of Seabreeze Partners Management said. "This is a company with no growth, and profit margins that are way too high vis a vis the competition."

Indeed, at its latest media event, Apple disappointed many investors but not releasing a much cheaper iPhone, as some had been pining for. Instead, Apple released more high-end phones that will keep profit margins high, but threaten to do further damage to the company's already-declining market share.

(Read more: At a crossroads, Apple must make one huge decision)

"We remain disappointed with Apple's decision to remain a premium priced smartphone vendor," Credit Suisse analyst Kulbinder Garcha wrote in a note that downgraded the stock to "neutral" from "outperform" after the event. "On our new estimates, Apple's smartphone share will decline to 15.5 percent/13.1 percent this year and next from 18.1 percent last year."

But Kass says that there's a second issue at work: While Apple's prices have stayed high, the company has not delivered innovation to keep pace.

»Read more
  Monday, 16 Sep 2013 | 10:51 AM ET

Cramer: Buying here is like trading 'on quicksand'

Posted By: Paul Toscano
Cramer: Avoid these stocks, it's like trading 'on quicksand'
With so many companies rallying of late, CNBC's Jim Cramer questioned whether most of the market is overbought and warned investors that many names are like trading "on quicksand."

Many of the stocks most loved by the market may be troublesome for investors moving forward, CNBC's Jim Cramer said, and buying these names could be a dangerous proposition in the near term.

"I think a lot of people were short, because all you saw was the government could be shutting down, Summers comes in, you have the Fed meeting," Cramer said on "Squawk on the Street" Monday. "Suddenly you have this event, it was a lightening bolt for a lot of people. A lot of hedge funds had to cover exactly what they were shorting."

»Read more
  Friday, 13 Sep 2013 | 6:01 AM ET

Bulls see bright picture in Arris

Posted By: Mike Yamamoto | Managing Editor, OptionMonster
Adam Gault | OJO Images | Getty Images

Arris Group has been on a rocky ride since purchasing Motorola Home from Google last December, but the bulls tuned into the consumer-tech company yesterday.

OptionMonster's tracking systems detected the purchase of more than 5,000 February 15 calls, first for $2.05 and then $2.20 for the largest block of 4,274 contracts. The volume was almost 21 times the previous open interest in the strike, indicating that new positions were initiated.

These calls lock in the price where shares can be purchased in the maker of cable TV set-top boxes and broadband systems. They can generate significant leverage if the stock continues to advance while limiting the amount of capital at risk but will quickly lose value if the shares don't rise.

Arris rose 1.26 percent to $16.13 yesterday. It spiked above $17 after reporting second-quarter results on Aug. 7 but then gave up all of those gains in the rest of the month. Shares found support at their 50-day moving average coming into September and have been rising with it since then.

The company unveiled a new set-top box at the IBC 2013 industry conference in Amsterdam yesterday, seeking to combine various wireless functions in one device. Barclays initiated coverage on the name with an "overweight" rating on Wednesday.

Total option volume in the name was seven times greater than average yesterday. Only five puts traded in the session, a reflection of the day's bullish sentiment.

»Read more
  Thursday, 12 Sep 2013 | 10:15 AM ET

Cramer: These 'anointed' stocks will go higher

Posted By: Paul Toscano
Cramer: Watch these 'anointed' stocks
A handful of stocks are seeing such a strong rally that they seemingly can do no wrong, so much so that Cramer likened them to being religiously "anointed."

There are a handful of stocks out there that the market loves and that should move even higher by the end of the year, CNBC's Jim Cramer said Thursday.

"What occurs to me... I call them the 'anointed ones.' What does Yelp have to do to go down? Zillow?" Cramer asked.

"These guys, they are just so loved it's almost like they're going to be marked up between now and year end," he said on "Squawk on the Street".

He also listed Regeneron, Celgene and Seattle Genetics among the "anointed" stocks. Cramer joked that that these companies would have to seriously alienate its users in order to see a significant pullback.

"Where are the big sellers?" Cramer asked, listing several macroeconomic concerns that could give investors pause, but have yet to noticeably slow the rally.

(Related: Why everyone was wrong about Apple)

He later explained that the market is taking negative news and interpreting it as positive, or translating low numbers, like those in housing, as a trough.

"This has been the most contrary year… the optimism is extraordinary," he said.

In addition, this week's record-breaking and oversubscribed debt offering by Verizon is a sign that huge amounts of investor capital is available in the market, Cramer said. "These are extraordinary times."

(Read more: Verizon prices record-breaking $49 billion bond deal)

However, for one much-loved stock, Netflix, the outlook may not be so rosy into year-end.

Cramer pointed to a Morgan Stanley research note released Thursday that downgraded the stock to equal weight.

The analysts captured "the karma of the market," Cramer said, with the idea that Netflix is currently priced for success.

»Read more
  Thursday, 12 Sep 2013 | 6:18 AM ET

Housing bulls pile into MDC

Posted By: Mike Yamamoto | Managing Editor, OptionMonster
Daniel Acker | Bloomberg | Getty Images

Housing stocks have been trying to rebound in the last week, and yesterday the bulls piled into home builder MDC Holdings.

OptionMonster's tracking systems detected upside option activity in the October 30 calls, where nearly 2,700 contracts traded for $1.15 to $1.75. The volume was well above the strike's previous open interest of 417 contracts, indicating that new positions were established.

These calls lock in the price where shares can be purchased, letting investors benefit from gains in MDC for much less capital than buying the stock directly. The options can also provide significant leverage in a rally, but they will expire worthless if shares remain below $30 through mid-October.

»Read more
  Wednesday, 11 Sep 2013 | 6:15 AM ET

Bulls drill for a gusher in Newfield

Posted By: Pete Najarian

Options have been active in Newfield Exploration, and buyers were stepping in yesterday.

The September 25 calls lit up OptionMonster's trade scanners, with large blocks fetching $0.25 and then $0.30. More than 7,700 traded in volume well above the previous open interest of 3,100 contracts, so new money was definitely being put to work.

These calls lock in the price where the oil stock can be purchased, controlling moves to the upside at limited cost. They can also generate some extreme leverage if the shares move far enough.

»Read more

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  • The CNBC Stock Blog is a cross-section of expert opinions and insights from our TV and Web site coverage. This blog includes posts written by and about top analysts and strategists, super-investors and CNBC's own market mavens. You'll find stock picks, news about publicly-traded companies, commodities, hot sectors, ETFs and the latest options action.


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