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Cramer on BloggingStocks: Lots of stocks still haven't fallen enough |
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| Oct 23, 2008 02:03 PM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Market matters, Freep't McMoRan Copper (FCX), Stocks to Sell, Cramer on BloggingStocks  TheStreet.com's Jim Cramer says the sellers are in control, and without dividend protection, we have no floor. The bad stuff is in the market. It just has to get more in. That's all. That's the conclusion you have to reach when you see companies like Terex (NYSE: TEX) (Cramer's Take), which is valued at only a billion and a half dollars, or Joy Global (NASDAQ: JOYG) (Cramer's Take) at $2 billion and change or McDermott (NYSE: MDR) (Cramer's Take) at $3 billion. In other words, forget about the stock prices. They are almost all absurd unless we are headed into a recession of such magnitude that companies start showing severe losses in the first quarter. Think about the market cap size. If Terex, which is actually a pretty good machinery company, can sell at a billion and a half dollars -- about the price that some acquisitive company might have paid for a division of Terex a year ago -- why can't it sell at $1 billion? How about $800 million? What's to stop it? The sellers at this point obviously don't even care about it, not one bit. They just want money. The buyers have had their heads twisted off and don't want anything more to do with it. No one wants to recommend it because the estimates are too high. And without a dividend, it has no protection; besides, people might perceive that the dividend can't be paid -- a la Freeport (NYSE: FCX) (Cramer's Take) -- and sell it anyway. Continue reading Cramer on BloggingStocks: Lots of stocks still haven't fallen enough Permalink | Email this | Comments
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