The firm said Outperform rated AMGN was helped by no label change for Aranesp and that CELG’s momentum will continue. The firm continues to see PML risk for BIIB in 2H08.
Jim Cramer’s “Mad Money”
Thursday’s show, Cramer told viewers that although stocks are the most important element in a balanced portfolio, he cautioned viewers that “there are a lot of other things you have to do if you want those investments to pay off.” Cramer identified “three necessities” that he said all investors “need to have taken care of” before they invest in the stock market. (1) credit card debt — given the high interest rates, even a great investor can have his gain canceled out by credit card debt. (2) health insurance — he told viewers not to invest a penny in the markets until they have health insurance. Cramer says, “Medical emergencies are the biggest cause of bankruptcy.” (3) disability insurance — Cramer stressed how easily investors can get “wiped out” by unexpected hospital bills. Next, After taking care of the “necessities,” Cramer told viewers they need to prepare for retirement. He said it isn’t enough to just mindlessly save money into a 401k plan. Cramer told viewers they need to stay diversified and play an active role in the management of their savings plans. He recommended S&P 500 index funds as a better proxy for the market’s high-quality names. Cramer still advocated investing in bonds, but contrary to conventional wisdom, recommended only two-thirds of a portfolio be in bonds at retirement age. Also, Cramer suggested making 401K contributions as the market dictates, rather than evenly throughout the year. “Pay attention to the market,” said Cramer, “contribute twice your normal contribution any month the market is down.” Cramer’s final piece of retirement advice was that there is more to investing than just 401k plans. He said individual IRAs are the perfect way to supplement a 401k, giving investors a superior vehicle for managing retirement investments. During the show, Cramer took a question from a caller who asked him what it meant to do homework on a stock. Using Caterpillar (CAT) as an example, Cramer said investors need to put in time, reading a company’s earnings reports, news stories and annual reports in order to make an intelligent decision on a stock.
Fast Money position recap
- Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (AAPL), (AMLN), (ANR), (NOK), (NUE), (TSO), (XLF), (YHOO), (HD); Najarian Owns (WFMI) Puts, (MER) Puts, (WFMI) Puts, (HBC) Puts; Najarian Owns (MYGN) Calls, (SLB) Calls, (WM) Calls, (WLT) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (TIP), (FLS), (GLNG); Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm And Finerman Own (GE) And (GE) Puts; Finerman’s Firm Owns (MSFT), (SUN), (TSO), (TWX), (VLO); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Owns (HUN) Calls; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (BNI), (YHOO), (LUV), (CME), (GOOG), (SU), (INTC), (FXC), (IYT), (XLF), (FCX); Terranova Owns Dollar Index Futures
Terranova is chief alternatives strategist at Phoenix Investment Partners;; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (FCX), (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (POT), (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO).
Market looks to bounce on a pullback on oil. Tech shares and fertilizer plays look to bounce the most so far in premarket. Let’s see if this early bounce can manifest into something bigger but I’m not holding my breath. I have my list of shorts and longs and will let the market range for the first part of the day and week to gauge the supply/demand levels of the market in this oversold condition. Earnings are now up to bat and reactions to the earnings will be more important than the results themselves. Pick plays with a high probability of success, have focus and patience. Plan the trade and trade the plan. Good luck and great trading.
