Jim Cramer is ready to buy only 1 stock
The industrials sector is seeing share prices down 10% or more from their highs. That's intriguing, the CNBC host says.
Typically Jim Cramer likes to leverage weakness and scale into new positions when stocks sell off. But not right now, save for this stock.
"I look at every decline as a source of better prices," Cramer said, and Thursday's selloff, in which the Dow Jones Industrial Average ($INDU) tumbled by triple digits, is no different. The Dow continued to fall Friday.
"Whenever my charitable trust has cash, which we do now, Stephanie Link, my co-portfolio manager and I look for something to buy. The problem is buying opportunities are mighty hard to find right now."
Although that may sound as if Cramer can't find a company that he wants to own, that's not the case. There are a lot of companies that he wants to own.
"We just got fantastic numbers from Facebook (FB). I like that. However the trust already owns it," Cramer said.
"Apple (AAPL), off two bucks, is tempting, after listening to T-Mobile's John Legere talk this morning about the iconic nature of the iPhone 6 which is about to launch. He must know something, I figure. But the trust already owns Apple, too."
The issue, instead, is that as sharp as the selloff may seem, it hasn't been sharp enough to generate any significant discounts. "And I want to buy something that's down, really down. Not just a couple of points from its high." Most of the companies that Cramer wants to own, across a wide range of sectors, remain near 52-week highs, if not all-time highs.
Therefore, Cramer is reluctant to pull the trigger.
There is, however, a pocket in the market that interests Cramer. It's the industrials. In this space, "Many of these stocks are down 10 percent or more from their highs. To me, that's intriguing," Cramer said.
And of all the stocks to choose from, Cramer thinks Dow Chemical (DOW) presents an interesting risk versus reward proposition.
"Dow Chemical has been at the forefront of using U.S. natural gas, which is the cheapest in the world. I like that edge," he said.
Also, because there's a flight to safety underway, Cramer expects investors to rotate into stocks that generate yield. Dow Chemical yields 3 percent.
"And Dow has an activist, Dan Loeb, a very powerful, very smart money manager who's pushing management for change or maybe even a breakup," Cramer added.
All told, Cramer thinks Dow Chemical is a buy. However, other than Dow Chemical, no other stock in the sector or the market meets Cramer's criteria for investment.
"I could continue to tick off stocks I'm not ready to buy, endlessly. But I think you see the point. I don't think there's much to like yet, especially with all of the uncertainty abroad. The best of the best are still high with the exception of Dow Chemical, which I am buying for the charitable trust."
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In March 2007, a December 2006 interview from TheStreet.com's "Wall Street Confidential" webcast stirred controversy after it appeared on . In the video, Cramer described activities used by hedge fund managers to manipulate stock prices—some of debatable legality and others illegal. He described how he could push stocks higher or lower with as little as $5 million in capital when he was running his hedge fund. Cramer said, "A lot of times when I was at my hedge fund...When I was positioned short—meaning I needed it down—I would create a level of activity beforehand that could drive the ." He also encouraged hedge funds to engage in this type of activity because it is "a very quick way to make money."Cramer stated that everything he did was legal, but that illegal activity is common in the hedge fund industry as well. He also stated that some hedge fund managers spread false rumors to drive a stock down: "What's important when you are in that hedge-fund mode is to not do anything remotely truthful because the truth is so against your view, that it's important to create a new truth, to develop a fiction." Cramer described a variety of tactics that hedge fund managers use to affect a stock's price. Cramer said is to spread false rumors to reporters he described as "the Pisanis of the world." The comment was a reference to CNBC correspondent , who reports from the trading floor of the . "You have to use these guys," Said Cramer. He also discussed giving information to "the bozo reporter from The Wall Street Journal" to get an article published. Cramer said this practice, although illegal, is easy to do "because the doesn't understand it." During the interview Cramer referred to himself as a "banking-class hero. Definition of Cramer (DOUCHE CANOE)
How about the "Manhattan Bridge Company" issue of 1883?
- Cause I got a bunch of that to sell you, Cramer.
uh,a,uh,a,uh,a,uh,a that's all I heard from obama today. Nice speech!
I imagine Putin's runn'n scared!
This clown can always seem to make the right call--after the move has come and gone.
Cramer is just another talking head who manages to talk all day and contribute absolutely nothing of any value.
Ever been tortured, Mouth ??
Probably never been a Soldier either; Yeah that's what I thought..
Our Natural Gas prices are the cheapest in the world??? WTF go to Saudi they are burning the stuff to get it out of the way of the oil. In Southeast Asia it is like 50 cents per 1000 Btu compared to our $4. It just so damn hard to transport is the reason it is so expensive here. Run that pipeline across the Bearing Sea and watch the fracking stop on a dime!!!! Those holes in Siberia are my guess a measure of how much Natural Gas is stored in that area.
Cramer statement bogus as the rest of Wall Street.
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