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Company With "No Equity Value" Is Most Actively Traded Stock In The Market, Cramer Recommends You Buy It Now, "Likes Worthlessness"
Worthless Ambac is now the most actively traded stock in the market. The other 4 stocks the complete the quintfecta of most active stocks: C, FNM, BPOP and BAC. The liquidity rebate collecting computers and momentum algos are just having a field day, toying with daytraders. In case you still haven't figured out how to trade this market, find the most bankrupt companies and load up. You can't go wrong. Obama and Bernanke said so. Plus S&P 1,200 must be taken out at all margin call costs. 25x P/E (50x if you take out the stimulus)? Who cares. Not the computers.
All of the above means of course that Cramer is recommending it:
Give Me Some of That 'Worthless' Ambac
04/13/2010 11:49 AM
I hate Ambac Financial (ABK - commentary - Trade Now). I believe the current stub of equity is worthless. The claims are too big and the cash too small. But so what.
Ouch.
That's painful to write. Especially, when you consider the Columnist Conversation tune of Tim Collins, and the excellent work by Andrew Wessel at JP Morgan backing up that analysis.
But it doesn't matter. You could argue that none of these insurers are technically solvent: Radian (RDN - commentary - Trade Now), PMI (PMI - commentary - Trade Now), MGIC Investment (MTG - commentary - Trade Now), MBIA (MBI - commentary - Trade Now). It hasn't meant a thing.
MGIC has rallied 400% during its extended period of "worthlessness." I want some of that worthlessness. Radian's up 600% during its "worthless" period. I would have liked a piece of that worthlessness. How about grabbing a hunk of the 800% rally in the "worthless" PMI? Wouldn't that have been delicious?
Do you hold your nose and buy ABK because of those rallies? I believe, oddly, yes. Now, there is simply no percentage in admitting you would ever recommend a worthless security. But this is a game of performance, not a game of valuation. There are plenty of genuinely worthless stocks that have gone up huge. There are tons of cases where gigantically worthless stocks -- almost every dotcom circa 1999-2000 -- gave you great returns.
The purists out there have spurned these points. I could care less about purity. I could care less that someone might be able to say Cramer likes worthlessness. But the !@#$% animal spirits have it going, and a worthless stock can be worth something if it moves up that much and starts offering equity or bonds against it.
Again, I hate these situations. But they are real. They are happening. They have happened. And this is one of them that I feel is destined to happen again.
Sorry.
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risk is dead
Mr. Cramer draws a lot of water in this town. You don't draw shit, Durden. Now we got a nice, quiet little ponzi community here, and I aim to keep it nice and quiet. So let me make something plain. I don't like you sucking around, bothering our citizens, Durden. I don't like your jerk-off name. I don't like your jerk-off face. I don't like your jerk-off behavior, and I don't like you, jerk-off. Do I make myself clear?
you forgot the /sarc tag.
But then again, was it really necessary?
That's fucking interesting man....
http://www.youtube.com/watch?v=zcv6fPszAZY&feature=related
"I'm sorry... I wasn't listening..."
Maybe, but I'm still buying Puts as insurance.
Banks buying their own shares: masturflation.
::standing ovation::
Oh that one definitely won the most humorous thing on the internet today award.
YES.....I would copyright that term NOW !! Then charge TD for its future use.
*blip* *blop* bzzzzrk
400% Short Squeeze
Tomorrow is another Bernie speak. We all know what is coming out of his mouth. Rates will be low indefinitely. Time to ramp up the markets at the close.
Whenever a company seems to be going bust... what do you do?... BUY IT!
Really, I've been watching a lot of crappy stocks when they plummet down with very good reason, and without reason they rise back up like phoenixes.
Its like reverse value investing where I find the something devoid of value and bet on that.
Maybe get some options on something totally worthless.
Think like Cramer"
If the stock is "worthless" than it can't go any lower than that. What if AMBIC hits the lottery over the weekend.
"Ouch. That's painful to write. But my bosses over at Goldman Sachs ordered me to do it. You see, I have no conscience. It's what they call 'sociopathic'. Go figure."
If Cramer is going to recommend retail investors put their savings in bankrupt financial companies because the stocks are gamed by computers, he damn well better shout from the rooftops when it's time to get out. Somehow I doubt he will.
Jump on the bus to Crazy Cramer town, because the dot com ride was not enough.
Do you believe in magic?
such a shame the "Trade Now" hyperlinks are not active - i totally would have bought some, just to get that destined feeling of it "happening".
this is the best goddammed blog on the web!n let's float the thing!
for anyone thinking the market is anything but a screaming, raging bubble of no volume positivity - go pull what this dufus wrote in 2000 and lay it side by side with the above
along with his "new tech" special on commodity stocks in the spring/summer of 08.
so he recommended it at 2.60 ish and it just closed at 1.67. another perfectly timed call by the maestro.
Bwah! The conspiracy to keep Cramericans broke and stupid.
Gapped up to 2.95 at the open, from 2.25 close yesterday.
After hours: 1.63 -0.62 (-27.56%)
Brings back fond memories of Gasparino feverishly attempting a stick-save with the rumor-du-jour into the close, as it fell from 65 to 1 over a little more than a year. I caught it twice on the short side for a decent chunk out of the middle. But the time for these games was many months ago. Now, you would be playing against SkyNet.
I buy shiny stocks. They so purty.
-Jim Cramer
Any doubts now we are experiencing another stock market bubble?
Thanks, Bernanke, for the continued destruction of our country.
Everything is TBTF no risk, everything must go up.bankrupt or not.Have to restore normal.
once they hunt your stop, the algos just continue to shrug off all bad news.
Meanwhile, INTC blew the door off earnings, so it's Dow 12K, probably before the end of the month. By the summer, we'll be halfway to Tyler's Dow 36K.
The sad truth is a moron like Cramer has been right for the last 4000 Down points and 1000s of anonymous bloggers have lost all the money that they made shorting in 2008 and then some in this ridiculous short squeeze.
Then again most of these bears probably aren't trading for a living, they'd rather be right than make money so I bet they don't really care if they got their head handed to them on a plate.
I have not lost one single USD/EUR/AUD/CAD in the timeframe that you speak of. Actually, couple of mil. landed into my bank account.
No, im not a genius.
I just DON'T play a RIGGED FUCKING GAME that has no support in reality.
I just bought oil last March when it was clear Bernanke was going to kill the dollar.
Who needs to worry about earnings and the like? Just bet on dollar destruction.
You ever see a squids's eyes? He's got lifeless eyes. Black eyes. Like a doll's eyes. When he comes at ya, doesn't seem to be living... until he bites ya, and those black eyes roll over white and then... ah then you hear that terrible high-pitched screamin'. The market turns green, and despite all the buyin' and the hollerin', they all come in and they... rip you to pieces."
Im going to need a bigger brokerage account.
I'm talkin' about workin' for a livin'. I'm talkin' about sharkin'!
You know that was the time I was most frightened... waitin' for my turn (to get shafted by the market).
Fellows, let's be reasonable, huh? This is not the time or the place to perform some kind of a half-assed audit on a vampire squid. And I'm not going to stand here and see that thing cut open and see that little Kitco buy spill out all over the Comex.
You got city hands, Mr. Cramer. You been countin' money all your life.....
And looking at the after hours markets it seems that they now move more in out of hours than in 'normal' trading!
Dax is also doing the same now too!
Down roughtly 45% from the time Cramers' feces were thrown on the air!
Best Investement Advice Ever: Buy a worthless equity just because "the !@#$% animal spirits have it going".
Man... Cramer has really gone off the deep end on this one. I specifically remember his warning against trading the bankrupt WorldCom (less than a penny I think at the time--2002?) in a similar article on his site. There's no there there, everyone knows the end game is zero, stay away - was essentially his (correct) assessment. This time is different? Sure there are circumstances when something near-worthless or worthless can temporarily be hot potatoed around for a quick buck but to recommend this to retail investors. What a fuckhead.
It's a shame really. Back in the mid-late 90's when he was a hedge fund manager, his new Street.com site was very cutting edge, had info you couldn't really get anywhere else and was doing pretty much what ZH is doing now in a more narrow context.
I can't imagine what Cramer's motivation is these days for doing what he does. He just goes from bad to worse.
Let's just hope Tyler isn't hosting some Bet-The-Rent! type game show and director of the U.S. Mint in ten years.
How does this guy still have a tv show?
Amazing. Simply fking amazing.
If it's springtime can the tulip mania be far behind.
This Cramer story reminds me of the classic stock offering from the South Sea Bubble:
"A company for carrying on an undertaking of great advantage, but nobody to know what it is."
According to Charles MacKay this unknown man of genius, upon receiving within five hours a 2 pound deposit from 1,000 beguiled subscribers, set off the same evening for the Continent, never to be heard from again.
Cramer can't be that stupid. He's selling into it. No doubt in my mind.
I think Cramer is the black hole of stupidity...
You have to wonder. One of his writers, Gavin Magor, knows more about that company than the regulators. Guaranteed he knew damn well it would tank soon.
Time to put that HELOC to work!! I'm jumping in on this pullback with the other Cramericans! This is a gimme and the wife will be surprised when she finds out I paid off all our debt! 50k shares tomorrow at market baby! All you suckas gonna be sorry when I come back here with the 'told ya so'!! -- fools!
http://comixed.com/2010/02/18/gotcha/
Wow, just look at that ABC confidence plunge!!!!!
down to -47 from -43
"...it doesn't make any difference to me what a man does for a living, understand.
But your business is ah -- a little dangerous." -VITO CORLEONE
trades 725MM on a float of 288MM
This is the greater fool theory at work. "I will buy it at four because some one dumber than I will buy it at 5". This silliness has been going on for hundreds of years.
But now we have big time GE pushing this crap. We have national sponors who are backing this pitch to suckers on the biggest biz channel in America. To make it worse Cramer releases this crap to insiders before it goes out. So the 'shitheels' front run the losers.
I wish Ben B would read ZH. He is walking around in his suit saying, "I see no evidence of a bubble". They are stone cold blind.
ABK may go up. There are lots of fools around. Cramer is one of them.
Yes indeed, Bruce, there are a great deal of fools around and Cramer is by far the loudest in terms of footprint in the financial media. The fact that anyone respects him is beyond me.
As for Bernanke reading ZH, he's not ready. His level of denial is so huge that I'm sure he has a seemingly rational answer to anything that does not support his thesis.
I do believe Greenspan reads this blog though. His reverse Alheizmers condition could actually be attributed to it. Maybe Andrea made it his home page.
....but...but....JC says he trades in his charitable trust. He's into charity work while Lloyd covers the God thing. This is all apparently good for society, no...??
Actually it's all part of "guidance" group conciousnesses and people thinking they can game the 'system' by listening in on these and not checking things for themselves. It's kind of fun sometimes to walk into these group stupidities and just rip the whole thing to shreds. It works so well in the financial realm because it's hard to check up on it. But when they try to pull it in a technical realm you can sniff it out so easy just by having a deep understanding of things. I did a little parrot plucking today. Always fun.
Probably won't be long till these particular group conciousnesses even though they are hard to decode get ripped to shreds. These poor guys who are used to being able to lead people around on leashes are pretty much stuck running shitty little websites trying to lure out of work people into giving them their bank account number.
Ben Bernanke isn't blind at all. Each piece just doesn't make sense because it all works like a big giant 500 man football team. Oh and the ball is invisible.
Yeah, it amazes me that Bernanke does see action like this as evidence of too much market liquidity.
We're about 3 Municides away from AMBAC and MBIA becoming "state controlled" interests......
Cramer will be the next Treasury Secretary.