Cramer Picks DJIA 5,320 As Absolute DJIA Bottom (GM, AA, AXP, BA, PG, KO, T, VZ, DD)s

On CNBC’s Stop Trading segment today, Jim Cramer said that he ran the worst case scenario on all of the DJIA components, and the worst level he can come up is  5,320.  He said he did a bottom-up approach on each individual component and attached a reasonable worst case scenario for each.

The 5,320 call is where has many suppositions.  These were just some of the snippets Cramer threw out:

• even with (if) General Motors (NYSE: GM) going to zero;
• both Alcoa (NYSE: AA) and American Express (NYSE: AXP) heading to $2.00;
• Boeing (NYSE: BA) heading to $24.00;
• Procter & Gamble (NYSE: PG) to $36.00;
• Coca-Cola (NYSE: KO), AT&T (NYSE: T), and Verizon (NYSE: VZ)  hitting new 52-week lows;
• DuPont (NYSE: DD) heading to $11.00 after a dividend cut and more.

Again, those are just some of his brief snippets out of many hurried comments.  He was not making individual cases for stocks, but he was trying to apply the prices that would put the DJIA at 5,320 where he thinks a floor could be.

Some of you love Jim Cramer.  Some of you don’t.  But he can still move stocks regularly and sometimes even a market.

Our own take is much different.  We don’t care about the DJIA, and frankly we’d like to see the DJIA get disbanded.  It is a strange price-weighted index rather than a  market cap-weighted one. We feel that the Dow is  a manipulated index where the largest companies make all of the price moves for the index.

JON C. OGG