Mad Mail: Time to Buy Starbucks?

Mr. Cramer: Thank you for being a person of integrity on the subject of insider trading and federal oversight. When will someone of your stature expose the Fed for what it isn't? It's sickening how many people still believe that the Federal Reserve is a government entity when nothing could be further from the truth. Senator Louis T. McFadden gave this response at a hearing in 1933 when asked who was in charge of the Federal Reserve: "Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed." --Sile

Cramer says: “The institution itself, I think, is fine. I just think that what happened is [the Fed] was captured by laissez-faires academics who, frankly, think that this is just one great theory being put to work.” Cramer recommend this story from Thursday’s USAToday for a good take on Ben Bernanke.


Jim: Have you by any chance been following Cal-Maine Foods lately? After approaching (and briefly exceeding) their 52-week high, it seems like the shorts have really targeted this stock with short interest equal to 96% of the float for this stock. How should I play this as an individual investor? How would you assess the likelihood of a short squeeze developing here? Love the show and your books. --Jay in California

Cramer says: “It is already a short squeeze, sir…you’re trying to game a short squeeze, and that’s always too hard for this guy.”


Jim: Regarding your comments about eBay's changes in pricing. Did you happen to see the worst part of it? Starting this fall, as part of the move, checks and money orders will no longer be accepted on eBay's electronic checkout. Won't that be knocking out the very people that really need to shop on EBAY? By the way, can't wait to have you back twice a night...even though daytime was fun. --Susanne in California

Cramer says: “eBay is a troubled company…you’re absolutely right. Anything that would try to eliminate more customers is exactly the opposite of what they should do. This company’s made so many wrong turns it is frightening. And the fact that John McCain is being advised by [former CEO] Meg Whitman is also frightening.”


Jim: Is now a good time to get into Starbucks? Howard Schultz seems to be making good changes that very well could turn the company, and its stock, around over the next year or so. I'm wondering what advice you could give those of us who are thinking of buying SBUX right now. --Jason

Cramer says: “At $15, I said the stock’s done going down, I want to buy the stock. I think it’s going to be an 18-month turn. It could be similar to the turn that McDonald’s had…I would start buying Starbucks.”

Jim's charitable trust owns McDonald's.

Questions for Cramer?

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