Cramer’s Second 1/3 of Bottoming Stocks

By Douglas A. McIntyre Published Feb 28, 6:28PM EST

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On tonight’s MAD MONEY on CNBC, Jim Cramer said the market escaped a bad day but the damage has been done. Cramer thinks you can go bottom fishing after a very big drop, so he focuses on the most discounted stocks and you have to have plan knowing not everything bottoms at the same time.

Cramer’s Second 1/3 of the bottoming out stocks is one that takes a couple weeks is the financials:

The part that you have to worry about are the sub-prime and he thinks the ones paying huge dividends are the worrying area. That is too small for the market though. The fed can cut rates when those who need to borrow can’t and the fed is the one to intervene with cutting rates. Ahead of that is when you want to start owning the banks and brokers. He still loves Goldman Sachs (GS), Capital One (COF), Bank of America (BAC), and he even likes Citigroup (C) now that it is so low. He likes T.Rowe Price (TROW) as well and reminded about his call to buy the brokers on the downgrade today.

The last 1/3 to bottom is the mining and other cyclicals that you cannot buy until the others have peaked, according to Cramer.

By the way, do you know what bottom fishing is when you buy the bottom and it keeps going lower? Bottom Sniffing.

Jon C. Ogg
February 28, 2007

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.