Stock Tickers: MSFT, CAT, AMGN, CELG
Cramer on his Wall Street Confidential video segment on TheStreet.com is saying to Hold Your Fire. There are days where it’s easier to craft the thesis to sell in a good market, but you can use the market to pick your prices on stocks you want to own. Cramer said this week on the calendar because of the earnings flood is just really hard to make money and was the week to sit on your hands.
Microsoft (MSFT) is one that Cramer thinks is a core holding company and more solid than before, and Steve Ballmer is proving he’s the deliverer (that was one of his 5 tech exceptions to own after his "sell tech" call last week). Amgen (AMGN) could be two-fold, but Cramer says it’s the second best biotech and trades at 16-times earnings; Cramer likes Celgene (CELG) even better than AMGN on a pullback. Caterpillar (CAT) is the key to Cramer and it’s probably more levered to mining and petrol than housing; Cramer thinks that the destiny is in their own hands and 2007 is an opportunity for buyers to buy a great stock cheaply. Housing won’t bottom on its own until the Fed comes in and helps them after the May meeting.
His market bull thesis is still on eventual rate cuts; next week’s FOMC meeting is a non-event and in may they’ll start seeing the year over year downturn in commodity prices for the first time. The "rates up greatly thesis" he’s heard in the last 48 hours is one he’s not falling for it.
Jon C. Ogg
January 26, 2007
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