Mad Mail: Is Bear Stearns in Trouble?
Web Editor, "Mad Money"
Dear Jim:Textron is down from being a $70 stock to the low 50's. It has a large backlog of private jet orders and a large backlog of helicopter orders - some originating with the military. Unfortunately, it also has a financing arm. Do you think the market and its credit concerns are a large factor in the downturn of this stock or do you think its large backlog could make it attractive? --Doug
Cramer says: “I really like Textron. I’ve never been worried about their financing. This company’s rock solid.”
Dear Jim: I’ve been a fan since you used to make me late for work guest-hosting Squawk Box. I love your show and particularly your Wall of Shame segment. You go through CEO’s like Darth Vader went through Admirals. All hail, Darth Cramer! -- Ron from Ohio
Cramer says: “Um…he was actually a bad guy…but that’s OK. I appreciate any compliments that come my way. The reason I can have Walls of Shame and be Darth Vader is because of the Linda McMahon’s of the world, of WWE, who make money for us. I like to run an ‘even book.’ We celebrate the good and we trash the bad.”
Hi Jim: I really want to thank you very much for your aggressive stance against the NAB and the paid-off officials that are opposing the XM Satellite Radio - Sirius merger. This has really gone on way too long and it is obvious why it has. One thing that I find interesting is how much money has been lost in Sirius call options for January and March. As I recall about 200,000 SIRI calls expired worthless in January, and another 300,000 or so calls with a strike price of $3, $4 & $5 will expire worthless if the deal is not sealed by March 21st. After that, the volume is markedly down. Interesting… --Lynn
Cramer says: “Sirius is basically a call option. People shouldn’t be buying calls on calls. Just own the darn stock and keep pressuring everyone in Congress. Eventually they have to realize that we should be able to listen to Major League Baseball and NFL without having to buy two cars.”
Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? --Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”
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