PetroBras: Value Play or Stock to Avoid?
For Monday’s “Mad Mail,” Mario asked Cramer why Petroleo Brasileiro PBR was lagging its peers despite the current rally in commodities. Cramer told him that the company last secondary offering left a bad taste in many investors’ mouths, and that’s why the stock’s down so much.
“I do prefer a lot of other oil companies,” Cramer said, “including, I would say, Total … [and] Royal Dutch .”
Phyllis worried that Verizon’s terrible customer service, at least as she has experienced it, would cut into the overall strong performance of the company. Cramer blamed the problem on the customer service reps themselves, saying customers’ experience depend on who’s on the other end of the line. What matters, though, is that dividend, which Verizon can continue to increase. Plus, Verizon Wireless will soon carry the hugely popular Apple iPhone.
“So your personal experience, as important as that is to you,” Cramer said, “should not let you spoil owning a good stock.”
Ryan had what’s called a luxury problem: an 85-percent gain in Perrigo and a 52-percent gain in Banco Santander-Chile . He said he was considering selling half his SAN stake once he’d doubled his money in the stock. Was that too piggish a move to make when he already has such a huge return?
“Yes, Ryan. You’re being a pig on the Santander,” Cramer said. “I would sell that. I would hold on to Perrigo.”
Gary, too, suffered from a problem most of us would like to have. A stock he owned, Mesabi Trust , was up about 30 percent in the last month or so, and every time he considered selling it, it went up some more. What should he do with it, he asked Cramer?
“This is a classic cyclical stock,” Cramer said. “I would sell half, let the rest run, and I think you’ll be in great shape.”
When this story published, Cramer’s charitable trust owned Apple.
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