The Street deserves an F for these stocks

The market can do a very poor job of evaluating some picks, CNBC host Jim Cramer says.

By MSN Money Partner Jul 15, 2014 12:46PM
A model of a Boeing Co. 777-300 ER Dreamliner aircraft is displayed at the Singapore Airshow
© Seperi/Getty ImagesBy Lee Brodie, CNBC

CNBC host Jim Cramer always advocates doing your own research and drawing your own conclusions. This is why.


"There are times, such as now, when the market does a very poor job of valuing certain stocks", Cramer said. 


If you followed Street sentiment you might have avoided a number of stocks, and, in turn, missed out on opportunities to make money. 


"Let me give you some examples," he added.


Boeing

"For weeks now, Boeing (BA) has slid into the abyss of being the worst stock in the Dow Jones Industrial Average ($INDU)," Cramer noted, with pros worried that political headwinds as well as the aerospace cycle presented challenges the company couldn't overcome.


However, during the Farnborough Air show, a kind of trade exhibition for the aerospace industry, CEO Jim McNerney effectively said that wasn't the case. 


"He said, the refresh cycle was flourishing and should continue to flourish because newer, light weight planes save fuel costs. And he said that the book to bill for orders is running ahead of last year's and he expects it only to get better," Cramer noted. 


"The market gets an F on this one." Cramer said. "They just got the stock all wrong."


URS

Looking at Street research from only last week, Cramer found commentary which said, "URS was overvalued and should be sold because no one would ever bid for the company." 


Yet, over the weekend, AECOM said it would pay $56.31 a share in cash and stock for URS (URS), about an 8 percent premium over Friday's closing price.


Cramer could only say, "How stupid was the Street research?"


Citigroup

Largely Cramer said the Street turned its back on Citigroup (C), collectively deciding it was dead money.


"Then, in a matter of days, it reported a very strong quarter, solved its Justice Department problem and turned Citiholdings into a profit center," Cramer said.


Again, the Street couldn't have gotten this stock more wrong.


Facebook

"Do you realize that last week we saw Facebook (FB) collapse under a huge wave of selling due to worries about a decline in user engagement leading to a potential shortfall in the upcoming earnings," Cramer noted.


However, "A week later the stock's up five from the low," Cramer said, with no quantifiable research confirming the worries.


Yet again, pros got it wrong.


Cramer said the inaccurate Street sentiment extended to Gilead Sciences (GILD), Whiting Petroleum (WLL), and Alcoa (AA) too, with pros, again, failing to recognize that each of these companies also had positive catalysts at work.


All told, Cramer said, the preceding developments should remind individual investors that it's entirely possible to outperform the professionals. If you do the proper research and believe in your stock picks, Cramer said, stick with them. 


If Street sentiment turns against you, don't panic. As you can see from the examples above, there's a good chance you're right and the pros are wrong.


More from CNBC

13Comments
Jul 15, 2014 3:13PM
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So, Jimbo, let me get this straight.   You're saying either:
1)  the market is rigged and there is no such thing as a fair stock price set by buyers and sellers, or
2)  you yourself are omniscient and know exactly how stocks should be priced at any given moment.

Give me an "F"-ing break!
Jul 15, 2014 2:27PM
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if the market deserves an F then what do you deserve ? because you can't beat the market
Jul 15, 2014 1:16PM
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The purpose of this article was to optimize those ticker symbols? Wall Street wouldn't know a good stock if it bit them in the coke straw. 
Jul 15, 2014 1:59PM
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Yellen says the recovery is not over but the 1% is richer than ever before. There are more poor now. The middle class is shrinking yet she is determined to stay the course that only helps the rich people. What kind of insanity is this? End the Fed.
Jul 15, 2014 1:27PM
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Pink slip time for the IRS. Good riddance.

Jul 15, 2014 3:35PM
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wALL sT... Is using coke straws now, thought they used $100 bills or Benjamins, to us Gamblers.
Jul 15, 2014 2:31PM
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Jimmy I wouldn't touch any of those stocks with a 10 foot pole.
Jul 15, 2014 3:30PM
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The street got a big F for constantly bashing SDRL over the past year. Seems like every week, the street was bashing SDRL, jumping on the "analysts" bandwagon, as well as Barrons coattails. They all wanted in SDRL's killer dividend, and tried to drive the driller into cheap buying territory. They got their wish, when weak investors sold out, at the bottom. The rig companies are doing fine, and over time will only prosper. SDRL along with a couple of other names, pay out way above safe dividends. Now the street is touting SDRL as a buy. Crooks, wall street is a house of crooks.

 I did buy more in the carnage and bought at the bottom. I'll gladly take a 10% dividend over stock buyback companies, any day of the week.

Jul 15, 2014 3:57PM
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This is a typical "straw man" thesis spawned by cramer and undoubtedly learned at the feet of his master **** dershoputz ....

Who exactly is the "street" is it not cramer et al ....all he did was find someone somewhere who said these stocks were not good investments and then showed that maybe they were ......

I would bet that you could find someone being negative about almost every stock this week and then cherry pick a few that went up in a couple of weeks and point that out.

This does not make you a genius ..cramer is a fake nd should be in a cell with madoff etc ....
Jul 15, 2014 7:58PM
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He always seems great at "predicting" what happened last week.
Jul 16, 2014 8:38AM
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Do more job and stop complaining 

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