On todays Wall Street Confidential video on TheStreet.com Cramer said that Bernanke’s verbage today is laying the groundwork for what may be a fed cut in May. On Chrysler: The demand for autos is there and now the companies all want to worry about profits rather than market share. You want to own these if they are going to all go for profits, but the best is the convertible notes and the debt. Cramer said Johnson Controls (JCI) is one of the safer auto plays. He thinks that goes through $100.00.
Cramer said Applebees (APPB) is overvalued. It is up 14% and at a 23 P/E, so this is the sort of thing that can cause a legal backlash; and APPB isn’t as good as Darden and others to Cramer. He doesn’t like the APPB sell and he thinks some of the backlash will end up in Congress.
Cramer said that he disagrees with media about the Fed being a hawk and he thinks that Bernanke is signalling he is looking for an excuse to cut rates right now. Cramer stressed: THERE WILL BE A CUT IN MAY.….That is why he said Accredited Home Lenders (LEND) and Countrywide (CFC) are going up when conventional wisdom would have you think they would go down on poor results.
Here is what we noted yesterday ourselves about a potential APPB bid.
Jon C. Ogg
February 14,2007
Top Gaining Stocks
Top Losing Stocks