The FinancialContent Network     SocialPicks Community   |   MarketMinute Monitor   |   MarketMinute Market Updates   |   MarketMinute Stock News
SocialPicks
   Sign Up   |   Log In   |   What is SocialPicks?     

Cramer on BloggingStocks: Eventually, balance sheets will matter again

 Jul 16, 2008 09:10 AM UTC
Return Risk
+2.37% MID
Tracked Blogger
Symbol Sentiment Start Return Closed
WB Positive 07/16/08 +88.07% 07/24/08
CAT Positive 07/16/08 -30.28% 01/06/09
DE Positive 07/16/08 -19.82% 11/18/09
PH Positive 07/16/08 -43.12% 10/23/08
UTX Positive 07/16/08 -12.22% 01/09/09
JNJ Positive 07/16/08 -12.82% 01/09/09
CSCO Positive 07/16/08 +15.76% 11/16/09
ETN Positive 07/16/08 -14.13% --
BA Positive 07/16/08 -18.68% --
BDK Positive 07/16/08 +17.94% --
INTC Positive 07/16/08 +15.55% 08/12/08
MSFT Positive 07/16/08 +6.56% 08/12/08
EMR Positive 07/16/08 -34.56% 06/23/09
TXN Positive 07/16/08 -7.37% --

Graphic_arrow1 Via BloggingStocks:  

Filed under: Microsoft (MSFT), Cisco Systems (CSCO), Intel (INTC), Market matters, Caterpillar (CAT), Johnson and Johnson (JNJ), Black and Decker (BDK), Boeing Co (BA), Wachovia Corp (WB), Texas Instruments (TXN), Deere and Co (DE), United Technologies (UTX), Eaton Corp (ETN), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says when the dust settles, we'll notice the reduced equity here, and stocks will rise to reflect it.

Do corporate balance sheets matter? One of the things that you will see in the next few weeks is everyday industrial companies brimming with cash. You are going to see buybacks of huge proportions. Companies like Deere (NYSE: DE) (Cramer's Take) and Parker-Hannifin (NYSE: PH) (Cramer's Take) and Caterpillar (NYSE: CAT) (Cramer's Take) are swimming in cash. United Technologies (NYSE: UTX) (Cramer's Take), Emerson (NYSE: EMR) (Cramer's Take), huge. Every drug company, big. Almost every major tech company from Intel (NASDAQ: INTC) (Cramer's Take) and Microsoft (NASDAQ: MSFT) (Cramer's Take) to Cisco (NASDAQ: CSCO) (Cramer's Take) and Texas Instruments (NYSE: TXN) (Cramer's Take). Johnson & Johnson (NYSE: JNJ) (Cramer's Take), which just reported, has a monster amount of cash. (Eaton (NYSE: ETN) (Cramer's Take) will soon, after the smoke clears.)

I know it doesn't matter at all. Right now we are so stuck on the banking problems and on the companies bleeding from higher energy prices that nobody cares about all of this cash, which will be used to shrink equity. They won't care because the banks, brokers and homebuilders, and the hobbled companies that use oil, have to issue so much equity that you can't see the effect of the equity shrinkage. But it will eventually matter. It has to matter that Deere has taken out 10% of its stock in the last four years. It does matter that Black & Decker (NYSE: BDK) (Cramer's Take) has eliminated almost 20% of its equity. Emerson's taken out 5%, same with Boeing (NYSE: BA) (Cramer's Take). There's just a huge amount of equity being shrunk.

Continue reading Cramer on BloggingStocks: Eventually, balance sheets will matter again

Permalink | Email this | Comments

<map name="google_ad_map_145-1257635"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1257635?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map>





 Graphic_website1 Read the rest of original post »



Add Comment

Be the first to comment on this story and earn 2 points.

Your Comment



IN THE PRESS
Press_forbes Press_washingtonpost Press_wsj Press_npr Press_techcrunch