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Mad Mail: Still on Track for Dow 14,500?

Hey Cramer: I have made some change off your suggestions, including Foster Wheeler . I bought FWLT in April in the low $70s and sold at $105. I sold because it was reaching the two times earnings threshold that is one of the rules in your books and on your show. The interview Friday with FWLT’s CEO Milchovich was great. His case for the future is very compelling. I checked again and FWLT still has a PEG ratio of 2.3. So why does the rule not apply here? Is this a best-of-breed or what? --Brian

Cramer says: “I think the estimates are going to prove to be way too low for next year.” It was right to take profits because Foster Wheeler is a momentum stock and all the momentum names are being sold right now. That said, the company is still in the sweet spot of the global buildout.

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Dear Jim: If oil comes in quite a bit, would it be a good trade to buy the refiners and tanker stocks as the crack spread narrows and as global tanker demand increases as crude comes down? I heard the CEO of Nordic Tanker mention that he sees demand slowing at the current prices of crude. --Joe

Cramer says: “You’re right, that would be a good trade … I prefer to do the refiners,” particularly Marathon .

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Hi Cramer: Just wondering why you didn't ask your law school friend from NRG about the storage of spent fuel. I don't see any progress with the tunnel in Utah, and having lived four miles from the last nuclear power plant built, where all the spent fuel is stored on-site on above an earthquake fault, I am a bit skeptical about the industry. --Rosemary

Cramer says: “That was my bad. I should have absolutely asked him.”

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Boo-Yah Jim: A few weeks ago you said that you liked E*TRADE when it was at nearly $14 per share. You said that you felt they could weather any mortgage-related storms that might come their way. It is now down, dropping fast since your comments and Citigroup has even warned of a small chance of bankruptcy. What are your thoughts today? Do you believe that there is a danger of bankruptcy? --Greg

Cramer says: E*TRADE missed the quarter twice and I have not endorsed it since then. Monday’s downgrade to a sell by Citigroup “shocked me and rocked me.” Analysts don’t make bankruptcy comments idly.

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Dear Jim: Do you still see the Dow at 14,500 by the end of the year? Has the dip saved the "shorts" from a buying spree at year-end? --Ron

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