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Cramer Goes From Buy To Bye Bye On BP, Loses Fans 33% In Two Weeks
Another day for Cramer, another loss for his viewers. After telling his fans to Buy BP on May 21, Cramer, "mesmerized" by its fall, pulls the plug. The cost to those who followed his advice: -33%.
This out from the Mad Money master earlier.
Mesmerized by the Fall of BP
By Jim Cramer
RealMoney Columnist
6/9/2010 6:56 PM EDTYou can't have one of the largest companies in the world disappear overnight and believe it won't affect other companies or the market's psyche. As Doug Kass said late tonight, this was BP's (BP) last hour, with ETF shenanigans thrown in.
At one point today, between $32 and $29, I remarked to a friend that I had never seen a stock unravel in front of my eyes like this one did, with huge value disappearing. Just amazing. Just disappearing.
It was frightening.
Also, it is clear that if you make the company's liability unlimited, it might never want to drill again. Who can risk this? Who can risk having a company taken away from its shareholders, as if it were expropriated even when you believe it deserves it?
Lots of people are debating right now whether any company in the Gulf of Mexico can finish a project, or even stay in the Gulf. They believe this is Three Mile Island for offshore drilling. My colleague Matt Horween reminds me that the risk-reward has now gotten astronomical for those who drill or already have wells in the Gulf.
Watching BP fall and watching Anadarko Petroleum (APC) collapse after actually being up at one point -- talk about misdirection -- was horrifying to everyone. It was like watching the collapse of every single nuclear-power utility in the 1980s in time-lapsed photography.
I know there had been many smart value buyers of BP all the way down. They came on TV. They talked their game. But in the end, they could own, well, nothing. Or what, maybe they make $5? BP is now, to quote the late Richard Nixon, a pitiful helpless giant.
And that has everyone and everything spooked. I ask you this: If you follow the market, were you able to take your eyes off BP?
I sure couldn't.
Indeed, and assuming Jim pulled the plug on BP today, he lost over 30%. Too bad that on May 21, Cramer advised readers and viewers "that BP is a buy." Fast forward to 3'40" in the clip below, which shows the kind of irresponsible advice that Cramer continues providing to CNBC's catatonic viewers. Catatonic, because if they had followed his advice and bought at the open on May 28 at $43.64 and sold today at $29.20, they lost 33% in two weeks. "Stick with BP... Stick with Cramer" the comedian intones. And lose a third of your investable capital in half a month. And we were just starting to like Cramer after for once he actually was telling his viewers to be at least a little bearish. But at least this was not as bad as his call to buy Bear in advance of the bank losing 95% of its value, his defenders will intone. And we would agree.
h/t Nolsgrad
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Does anyone believe there are people who actually trade on Cramer ideas?
For Marla and radio Hedge
http://www.youtube.com/watch?v=GADtAYFB1V0
Definitely. I believe this because I have been looking at the kind of things people type on internet blogs.
+1 brilliant.
People will want to engage me in conversation about stocks. Eventually there will be the, "Jim Cramer said..." comment that comes out. My response has always been, "Jim Cramer will lose you money. He is definitely not your friend."
I am sure his charitable trust is accepting donations.
WB, there are poor pathetic morons that actually believe what he says. Yes, they don't control their finances since they have been diagnosed with Alzheimers, but they tell their kids that Cramer was in the room last night.
I know one... Heck, I'm related to one.
expect an announcement of dividend suspension in the next few days. It's inevitable. The sstocks already hammered, and it needs to politically as well.
The stock will be at 15 in 2 weeks.
Are his ratings at ZERO yet?
Get hedged Cramer. Theyz coming for you soon. Very soon. And no, they ain't buyin'.
TY for telling me to fast forward. Cramer gives me the creeps. Bavarian Illuminati and all...
Why is the BP spill burning?
http://www.ustream.tv/pbsnewshour
LMRP cap color is yellow. If you can see it it actually means BP is capturing more and more of the spilled oil.
Cramer is incredible. In-credible. Not credible.
BP producing oil and gas is far less incredible, culpable, indictable, and ethically compromised then the jack-asses ruining our markets and running our government.
I thought it was just more gas coming up...because it surely is more yellow. Excuse me, I just burped and it caught fire here in the Marsellus Shales.
Double burp...
yellow, really, kinda missed that, guess I wasn't watching gush cam closely enough....
the only thing LMRP has done, by collecting over 15,000 barrels of oil a day, is to prove that way way more than 5000 barrels a day have been gushing into GoM for 50 plus days....
BP unleashes disaster on foreign soil....and foreign soil is not in Lat Am or Africa but instead in USA, oops... BP RIP
This whole oil spill really reminds of of what happened in the credit markets in 2008.
The players Create the crisis , and the offer the solution. (along with their experts).
Maybe the pipeline was just too old to repair, like the maintence issues of the twin towers.
Easier to just blow them up and collect the insurance payments. Hire ourselves to clean up the job. Manipulate the oil futures contracts abit, BP stock price abit, Insiders selling stock, and of course the winner going to Hal Burton: Buying the clean up company weeks beforer the spill.
Yes this feels like the credit crisis of 2008.
As far as being a false terror attack, I would have to say it's a pretty good one, in that no lives(collatoral damage) had to occur.
These fucks could give a fuck less about the damage they do the earth.
Unless of course it gives them a nifty way to introduce the long awaited Credit Carbon Tax Credit, what ever that is, go ask some one else to expalin it to you.
As far as the oil cartel I am convinced they would rather scorge the earth in one big world war, then to handle over the reigns of power (fossel fuel). They aint going anywhere, no matter how brillant these new energy sources are. Big oil won't go down without a fight.
Shall I buy Enron, Cramer? Shall I read the fine printng screen of your program before asking you?
I'm sure Cramer the Clown has some Bear Stearns shares in his car trunk he would be happy to sell you...
BP = accidental high yielder. lulz
I subscribed to Cramer's paid service, Action Alerts. I never saw so much whipsawing in my life. When he wanted you to buy, he would issue the most remarkable positive story suggesting that it was an absolute buy of the century. Then, next week he would say they are a poor company and sell. The 6 month subscription to his service might very well be the biggest waste of money in my life. That was some number of years ago, but after just two weeks of his service, I could see he was a snake oil salesman. It was before Mad Money TV show, so it was not so clear at the time what a con man he is.
I wonder if they'd like to hire me instead ? I could get bald real quick: and I'd like to sniff up on some of that young assistant stuff they have in those studios. As far as the stocks go, a stopped clock is right twice a day; that oughta be close enough.
Wow...that is one hell of an admission. I respect you for that Rebel because we all make mistakes. Sorry he sucked you in.
Repeat after me: I am Jack's smirking revenge. Cramer will be unemployed in a year and his charitable fucking trust and personal portfolio will be handled by Bob Doll.
BP's lack of controls and mishandling is inexcusable. Obama's reaction is one that reminds me of Latin AMerican dictators. Let's stop the spill and start the clean up. BP has a moral and legal obligation to the people of the Gulf - but they also have a fiduciary responsibility to its shareholders. Push them to hard everyone loses. Let the legal system work. BP may end up in bankruptcy one day - but that is not Obama's mandate
I suggest that BP stuff Cramer's sorry ass down that pipe to block the leak, and kill two oily birds with one stone.
He. is. unbelievable.
I think he is going to have a nervous breakdown. His actions are bizarre. Would not be surprised if he cracks.
I think he cracked before, when his hedge fund melted down.
That man is scum.
They've managed to destroy the fucking Gulf of Mexico, and potentially the Atlantic as well! Surely the Gulf of Mexico is worth more than the market cap of BP, in which case, yes, they deserve to be trading at fucking 0!
+100
trading at zero should be the least of their consequences
http://www.youtube.com/watch?v=zjqY64WqC30&feature=related
This isn't the first time the Gulf was destroyed...
Fuck BP/Transocean
Amazingly, the morons programmers at CNBC still believe in this guy as a ratings generator and the rest of the on-air talent treats him as a God.
He has no ratings, no credibility. His asshole is still sore from the John Stewart rape.
What does this guy have to offer at this point?
His life would be acceptable.
"His asshole is still sore from the John Stewart rape."
Stewart sodomized Cramer like a priest on an orphan alter boy...
Probably a viewership base. I misread the title, reading something like Kramer lose 33pc fans in two weeks.
Did not happen so I guess the guy is still highly popular. That is what you ask from a TV show: to be popular.
what self respecting trader hangs onto a position for a 30% drawdown without some thesis? after 5-6% i;'m out if a trade isnt working. Unless of course you think you know something and have "conviction" (aka horse shit). And if Cramer is your thesis well then please just give me your money.
Conviction Trade - A trade for which you're too stubborn to admit you were wrong.
Example: Leo's solar stocks.
Some wildly volatile stock maybe, with support 40% below the first possible buy, and an upside target of 150%. But that's purely hypothetical and I can't think of a situation where its actually come up (even including crazy small/micro-cap stuff). BP's chart is such a (deservedly) gigantic piece of shit that anybody who took Cramer's 'advice' deserves their subsequent ass-kicking.
We oldtimers care about Leo. Leo is a good man with Multiple Sclerosis and works hard at his site for Canadian Pension holders. He also revealed an amazing surgery that helps people with that ailment that I have shared with friends that have it as well.
I have written to him that I worry about him in his solar positions but he believes he is right. Ok. I accept that. But I still care about a man that is fighting a tough disease and spends his time looking for the positive. It is his therapy and I have been there. I think he is wrong but that's my problem. And you junkers as well. Not his. We are not going to change his mind. Just think if Gordon Gekko was in a world where none of us thought gold was a good idea and he kept posting and posting despite the vitriol and negative bullshit. I don't always agree with GG. He's very extreme. But it is the same thing. We are lucky that Leo provides very good insights into the pension system and that he hasn't said "FUCK OFF" to ZH.
Leo only sees the solar light at the end of the tunnel. But let's go easy on him, because he is a good man, and an alternate view to us bears. While he may seem totally out of his mind, he is probably just ahead of the game and it will cost him in my opinion. Most of his solars will follow oil down.
I don't agree with Pento--demand will die. But Leo is still here after all the junks, all the derision, and very little caring. There was a time 5 months ago and I have been here 11 months, that Leo wasn't torn to shreds. He doesn't deserve it. As I said in a post of my own earlier today, everyone has an opinion and an asshole--we all deserve to post our own opinions without being treated like a troll. Leo is far from a troll. He is no Harry Wanger or any other of the dark forces that lurk here.
When it all comes down to it, he is a part of this community and has been here longer than most of us. Please stop beating him up. His positions will do that for him.
Leo's medical issues have nothing to do with this, so give us a break.
Sometimes the man brings things on himself. Nonetheless he is man enough to handle it and doesnt need a pity vote from anyone.
Leo is Leo. We all know that. He can handle the heckling.
Yes, you are right. Leo can handle the heckling. But it wasnt that long ago when I got furious when Cheeky came back and was getting junked to pieces and I wrote some big rants on that. Whether I had any impact is unimportant--but things changed.
Leo is a human being that stands for what beleives in with his wallet. I disagree with him 100% in every way on his position on solars. I also think that even though he is a Canadian (and I blame Canada for everything Southpark style :) ), he has the right to say what he thinks without being treated like like a moron. That's all. He is a good man at heart. If you don't like what he posts, don't attack, move on.
My third double post in one night.
STFU howard...bedtime!
If garbage is any indication, the U.S. economy is strengthening. The number of freight cars carrying waste jumped 45 percent in April and May compared with a year earlier. From Bloomberg today.
I seem to remember Jim C and Harry H croaking about positive growth and a strengthening economy indicated by strong rail traffic numbers.
I guess a lot of people are just throwing out more trash....all the extra furnishing and furniture from there recently foreclosed on home and won't be needed them or will they even fit in there van down by the river.
when 40 million are on food stamps and many live with their parents, who needs 3 sets of furniture?
it's some sort of shadow stimulus thing...no doubt Fed is making things and then trashing them to bailout garbage haulers and to extend and pretend landfill holders...if America stops filling its dumps with crappy junk, then we will know its over...
Shadow stimulus thing = debt-fueled ARRA unemployment benefits extensions = consumption = waste. It will change. The following from Wiki on ARRA --
Aid to low income workers, unemployed and retirees (including job training)
Total: $82.5 billion (more than 10% of the entire ARRA package)As best I can tell, this was all used up in 2009. 2010 consumption rates EXCLUDING recently ended federal ARRA benefits such as these are just getting reported. Add publicly reported reductions in city and state payrolls to the mix and any forecast for near-term improvements in consumption/waste generation that isn't accompanied dramatic private sector employment increases strains credulity. Tremendous pressure building on this sector (that is the fabled US consumer who drives 70% of our economy.)
Investment implication -- Put SCC (2X inverse McD's, F, WMT, TGT) on your watchlist and keep an eye peeled for a sharp dropoff in consumer spending. Act quickly when the evidence presents itself as a corresponding turnaround is not likely to present itself quickly. Profits for months can be made as consumption double dips and consumer discretionary stocks decline due to slimmer profits. Just checked projected #s for this month coming out tomorrow at briefing.com. It's negative down at least .3% from last month but still positive (+.1%, consensus) but turning negative (-.2%, briefing estimate) excluding cars. While poor, this is not enough to move yet IMHO. Census workers are probably filling the lost benefits breach. Perhaps next month will confirm a more decisive downturn with a deep enough decline to initiate a confident entry into SCC.
In respect for ZH and its denizens, that's a quick take on the key fundamentals driving one possible profit making move in this razors edge climate that I haven't seen here, for what it's worth.
There's a commentor with some insight regarding the trash thing in here somewhere. I'll see if I can find it.
Edit: Here you go, http://www.zerohedge.com/article/feds-rose-book-out-improvement-and-kool...
I downsized from a 15' X 30' storage unit to an 8' X 8', (on my way to a 0' x 0'). I think I filled up one of those freight cars by myself with crap I didn't need to hang onto as the storage costs in a year were greater than the garage sale value. Widespread vacancies in storage units becoming commonplace. I'm thinking of buying puts on Public Storage to recoup some of my rental fees.
BP will have to liquidate its assets to pay off claims. Non American company who f'd up American soil = war. No legislator or judge in America will work to cap liabilities. Obama can just say "you owe us $2 trillion" and really BP can't do anything about it. Workers will get some considerable severance and everyone else in the gulf will be sure their ops are buttoned up which will be a boon for US service providers who will ensure safety.
disclosure: long small amount of puts.
teeny tiny problem: One of the owners of the US is the Queen of England. She also owns BP.
Oops.
Wasn't that one of the larouchite memes, the queen owns us all ?
Long live the Queen, the Queen has fallen.
That's very true! That is why she always wears those big floppy hats --- they hide the nuclear-powered mind-control helmet that she wears at all times to exercise her insidious manipulation over all of humanity.
No worries mate, she will call Benny Shalom and tell him to print a few hundred billion to make up for the loss.
"Stick with BP...stick with Cramer!!!"
When the future looks back at the human condition of the current period, they will wonder why we were so addicted to: debt, speculation, toxicity and wars. I remember on May 6, 2010 Cramer got on MSNBS after the close on the day of the flash crash. He assured everyone that a fat finger caused the panic.
I do have some respect for the man. On that day of the Flash Crash, he said everyone needs to own a little gold.
Hang it up old man, your days of glory are over.
technically, can a clown, no matter how famous or rich, really have had days of glory?
I imagine Cramer's audience to be one cat, a forgotten remote control, and me. The only reason he's still on the air is because Suze Orman has her hair buffed at 6PM.
Well, you must have a far stronger stomach than I, as I cannot stand even 10 seconds of that hyperactive clown's whiny, screechy voice --- it cuts right through my head like a hot knife through butter. And his "BOOYAHS!" and juvenile sound effects and manic hopping around are just the turd icing on the roadkill cake.
I always waited for Saturday Night Live to do a comedy skit based on "Mad Money", but then I realized --- they couldnt'! His show is its OWN parody! I mean, how would they parody parody? Do a skit called "Sane Money", with a serious and sober analyst who told his audience "Get the HELL out of the stock market!"?
Everything on teevee is there for a reason. In Cramer's case it's to reinforce the idea that there is actually a free marketplace in the USA.
he always reminds me of Bulldog on that TV show - ugh, I can't stand it for more than a few seconds, even just the commercials for his show
Actually, Suze is getting a sex change operation in Denmark. She wants the balls that Obama doesn't have.
Cramer has none of his personal money in the stock market. I don't know why anyone would take advice from someone with nothing riding on his advice.
Contra Hour on cnbc...
I long ago came to the conclusion that Cramer is an idiot. If you want to make money just do the opposite of what he says..........
Yeah, like taking gold investment advice by reading Kitco's Jon Nadler.
Funny, in over three years it has NEVER been a good time to buy gold, according to him, and always a good time to consider selling! And he STILL can't even bring himself to admit that gold is in a multi-year bull market, and vehemently denies it!
If Jon Nadler ever encounters the truth, both will be mutually annihilated in a stupendous burst of gamma rays.
C-L-A-S-S-I-C dipshit senor Kramer be.
Are all Americans drama queens and whiners now? Is it compulsory?
The oil spill in the Gulf is a problem (Americans used to solve problems and move on) but it is not a great national disaster. The earth deals with far worse events regularly, absorbs them and life continues. It will be the same this time.
The disaster has been the reaction by your political and economic leaders. Three Mile Island is a great simile. Chernobyl was a disaster, huge amounts of radiation leaked and spread over a number of countries and caused thousands of deaths. Three Mile Island leaked very little, it was contained, and had no serious impact on anyone. Nonetheless the US government and the anti-economic development types got hysterical and essentially banned nuclear power. And. of course, a lot of lawyers made a lot of money. So the US became increasingly dependent on oil, and especially foreign oil since it refused to drill its own where it was relatively safe.
If you actually had a real leader running the country, he'd go on TV and say "Look this spill is a mess, and it's going to take some time to fix, but we will, and we'll make good for those affected. But let no one misunderstand, this country's economy depends on oil and we are not going to stop drilling and bringing it to the surface. We'll find ways to reduce the failures, which are not high given the number of wells drilled under really tough conditions, but nonetheless we'll improve. But in the meantime we will open up the areas of the continental US and its immediate shallow waters, because that is the right thing for our country." And he'd say this with conviction.
But that hasn't happened and won't happen, because you're governed by a bunch of wimps and thugs.
The US used to be the can-do country. Aside from its military (which now has to fight with one armed tied behind its back, thanks to those same wimps and thugs), it no longer is.
For that reason, I certainly wouldn't be investing in any US oil companies, Chinese will be OK, but not US ones. Of course, given the prevailing "leadership" in government and economic matters, and the runaway Fed, investing in any US companies has become high risk.
Very sad to see.
Spot on.You summed things up nice. We lost can do along time ago...
You sound like a "retard", ("Hangover" pronunciation). I don't know what country you're from but by definition you are in the cheap seats:
1) The U.S. is flawed but you wouldn't be on a free internet without us Sparky.
2) Our current Government is clearly dysfunctional but our Constitution has fixed that before. It is the greatest document ever written.
3) Before you paint Americans with your wise-ass brush why don't you wander our Country and try pushing us around a bit. It will be an unhappy experiment for you. We only let Australians pretend they are tough because they always show up for our wars.
4) And on what authority do you pretend to preach to us on the BP oil spill? I doubt you know shit about the topic and America always deals with any problem. But the human misery is real. Maybe not to spoiled douche-bags, but definitely to many average hard-working family men.
In summary, piss off. 'Kay?
Just a note on 'your' wars, sport: you jokers showed up 3 years late for the first big show (we say "1914-18", not "1917-18"), and 2 years late for the second one... we beat the Nips back at Kokoda after they humiliated your guys on New Guinea... and then we left you to mop up, but you insisted on going all the way to Japan.
The second show was won by Stalin (how can you tell? - simple... he wound up controlling half of Europe).
The first big show was over by the time the US entered - the US entry was solely to PROLONG the hostilities and prevent a negtotiated settlement.
In short, the US did what de Gaulle did (although he actually ran away, the big-nosed coward); wait until it's all over, then declare yourself to be everyone's saviour.
The wars that most Strayans consider 'yours' -
Until our dopey shithead politicians decided to arse-lick the US, Straya had never been involved in a losing show... since then our record is a string of defeats that looks likea French general's resume.
So, let's just say that US braying about military might sounds a mite French - another nation that endlessly talks its own book, but is only good at winning against folks armed with nothing more problematic than a dirty look (their last victory was against the Mamelukes), although of course without them the US would still be a colony and all of your domestic terrorists - Washington and so forth - would have been hanged.
And lastly - The US didn't invent the internet (the Frogs had a nationwide 'Minitel' system in the 1970s), and it is something that is fundamentally a low-cost thing.
(Disclosure: back in the olden olden days [1980s] when I was a green-clad trained killer-thug-drone, I was on manouevres with US military several times... frankly, they were 'pants' - although they might have improved in the last two decades)
Cheerio
GT
[Watch him arc...]
What kind of manouevres did New Zealand and the United States hold in the "80's"?
Regarding the First and Second Show, many Americans went North and joined the Canadians. They were in it from the start.
I do not think there were any military accomplishments from New Zealand that were accomplished without American logistical support. I may be wrong but I googled New Zealand military accomplishments and did not find much.
Without Guadalcanal, there likely would have been a high price paid by Australia and New Zealand... You should thank your lucky stars that the worst was avoided by an ad hoc military adventure courtesy of the US of A.
I have to laugh at Brits and Eurotrash who continually come to predominantly American sites in order to show their alleged superiority and invariably end up exposing their own miserable defects vis a vis massive insecurity and penis envy.
New Zealand?
That's classic! Like I said, cheap seats...
New Zealand is useful only as a place for American rich kids to ski during our summer.
Good luck with that numb-nuts...
You are a pleasant piece of humanity aren't you. I doubt the founding fathers would be much impressed with your style.
I am not sure the US constitution is the greatest document ever written (some might say the bible, maybe the Declaration of Independence, various novels and philosphic texts). As I happens, I believe the US Constitution and with its amendments before the 20th century actually was the most powerful and important constitution ever drafted.
It all started to unravel with the 16th amendment (you know there probably was some reason the founding fathers did not give the federal government broad powers of taxation, they were far more well informed and lucid about government than most people today, including most Americans).
I don't know why you think I should "wander our Country and try pushing us around a bit". Obama, Reid, Pelosi and their leftist syncophants are doing a good job of that already. In any case I have no hostility towards the US, just the reverse. I am simply saddened to see what has become of a country that undoubtedly was once the greatest and is now eating itself while living on the legacy of the past because it has departed from the reliance on personal responsibity, personal freedom and independence from which its greatness was created.
Don't be so hard on yourself "Bazza"...Penis envy is nothing to be ashamed of.
Especially in you case...
Cramer should get together with Reggie Milton from BustBlogBoom.com and do a show.
The losses would be catastrophic!
Ha ha. Reggie and Jimbo, two self-promoting blowhards. What's amazing is they're usually on the opposite sides, and somehow they're both wrong.
Uh. Bear Stearns comes to mind, you dumbass Cramer.
Wait, he was misunderstood on his Bear call, just like he was on his Today show sell call and his Citibank offering buy call.
Seems like there is still big disconnect between BP's equity market cap and the level of their corporate bonds. Bonds in the mid-80's with a $100B+ mkt cap? Something's gotta give.
Re: Cramer..."A sucker and his money shall soon be parted." But CNBC should be culpable for promoting the man. Seems like some version of a crime. Cigarettes come with a warning label but CNBC & Cramer don't? WTF?
haaaaahahahahahahahahahahahahahahahahahaaaaaaaaaaahahhhhhaahaahahahhaahahahhhhaaahahahahhhahaahaaaahhhahhahahhahaa...................hhuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuggggggggggggghhhhhhhhhhhhhhhhhhhhh.........haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaahhahahahahahahahhahahaaaaaaaaaaaaaaaaaaaahhahahhahahahahaaaahahahahahhahahahhahahahaaaaaaaahahahahhhahahahaahaaa.
JACK ASS IV:
http://williambanzai7.blogspot.com/2010/06/jackass-iv.html
Anybody familiar with what happened after the Exxon Valdez spill will realise that BP will survive this (I've been in and out of BP nine times in the last five days - all scalps, all long, all in my beer money account... and I've made enough to beer up nicely tomorrow; will buy them again at the open of the UK session... again, just a little parcel).
BP could keep this in court for a decade - as it did with Valdez - getting inflation to pay half the bill. Let's not forget, it's a £73b company (was £110bn... har har). It will decide whether or not to litigate until Doomsday. One thing I would like to litigate is this idea that the US political-parasite class changed the maximum 'bill for the spill' AFTER THE FACT... makes the US look like a banana republic.
Also: does nobody think that BP has insurance against events like this? Srsly?
And it's only BP? RIG, APC, HAL... none of them contributed to the problem? Wasn't the drilling being done by contractors?
For the US parasite-political class to try to make hay off this event is not surprising (although they prefer to have some corpses to lick as well), but I think it will be a very tall order to prove contributory negligence... maybe not hard in front of the initial jury (who love the throb of giving away other peoples money) but look for any damages award to be reduced by 90% on appeal.
And now Cramer has thrown in the towel, it means that the very last fuckheaded numptie in the WORLD (those who trade/invest based on Cramer) are out. If you added up all the money Cramer has sent to money heaven, you could send every affected pelican to a fucking Rodeo Boulevard salon.
This is fun.
Also - somewhat related - I mentioned in an e-mail to a chum the other day that eventually someone woud pay to have a rumour hawked around about BP as a takover play... and lo and behold, StandardChartered are out promulgating the idea of a wedding between PetroChina and BP.
Once the IB crowd get a sniff of the fees of such a deal, there will be 20 Strong Buy recommendations... sell side has to do what the IB boys need in order to get the business.
Cheerio
GT
The media loves this story. And the politicians love to feel important. The environmentalists also need a new issue, seeing as climate change has been discredited.
Rule of law is all the state has. Naked force isn't nearly as effective as the regulatory apparatus.
Once they breach that, it becomes in the economic interests of every major corporate actor to undermine or overthrow the government.
It'll happen one way or the other. The Audit the Fed bill was getting television play before this disaster.
Cramer, he's still got it.
Hope it aint catching.
Lest there are any qualms about the"in and out for beer money" claim, I present...
and...
http://www.marketmentat.com/images/screenshot.1.png
http://www.marketmentat.com/images/screenshot.2.png
Your name and email are visible. Just a heads-up in case you might not wish that to be the case.
Hiya Conrad.
Thanks for taking the time to point that out - but I knew already (anything I want to do clandestinely, I do through JAP/TOR/JonDoFox... or freenet). I was thinking of scrubbing the personal data and the Plus500 branding, but then it would have been a doctored image.
Thanks again,
GT
Jim Cramer, proud part of the CNBC flying freak show since...
You should pay attention to Cramer´s and MSBBC´s disclaimers. Betcha he was dumping while the suckers were buying. BooYah!
Isn't what happened to BP exactly what the laissez-faire Reagan conservatives and libertarians exactly want: a world of zero regulation by governments and other authorities with the market place being the ultimate regulator mercilessly punishing companies like BP for their failures, even to the point of bankruptcy? Larry Kudlow should be having a major hard on over this since it is proof of conservative theocracy!
Said I was buying the open (see above somewhere)...
I did, and it has bounced almost 20 pence (4% unleveraged; 35% of margin). My day is done.
Cheerio again
GT
PS this is NOT a forecast, but would it not represent a PERFECT "Cramer Dumps - Last Fool Leaves" outcome if BP.L actually finished UP today? It opened down 11% and is now down a little under 7%.
I don't do much long-term international equities stuff, but am almost tempted into buying BP even for THREE quarters' worth of yield (assuming they don't simply DELAY the dividend until the US political-parasite class finished squawking).
I have actually bothered to deploy my analytical kung-fu and do some sums, and their yield is eminently sustainable (assuming a range of outcomes for the final cleanup) - so don't listen to option-hawkers like Najarian with his talk of BP folding as a result of this spill... would love to know if that included a disclaimer "Long BP puts from yesterday".
He is, officially, retarded.
Last year I was playing high stakes on CITI stock during the summer.
EVERYTHING WENT JUST SUPER!!
Suddenly that jackass Cramer spoke out his curse by trying to pimp CITI and it dropped like shit from a cow's ass!
If that guy pimps a stocks, be sure to start shorting it!
The classic example of this is his Goldman prediction at the end of 2007. He literally gave it out at the exact top.
___________
http://nymag.com/news/businessfinance/bottomline/42392/
The Future of Business
What stories will dominate the financial world in 2008? Our Wall Street guru makes his predictions.
By James J. Cramer Published Dec 30, 2007
What follows are my top-ten financial predictions for 2008—some mortal locks, others long shots, in that order.
1. Goldman Sachs makes more money than every other brokerage firm in New York combined and finishes the year at $300 a share. Not a prediction—an inevitability. In fact, it’s only January, and I think it’s already come true.
I am always amazed how people like cramer can continue exist.
One reason to why is that many humans will ignore / intentionally block there errors because it is not pleasant to think about them. I am sure this is not the only reason, but it must be near the top the list.
I was quite a buyer of Obama until the oil spill episode. He's displaying a lot of negative characteristics and the vehement manner in which he tackles BP is clearly politically driven. I agree with a couple of posts here that this will blow over in due course; that BP and others will pay for their mistakes; that lawyers will become rich and that bankers (bless their cotton socks) will look for way to oversell BP and then create fee-income based whichever way they can.
BP has 100,000 staff, operates everywhere and is a cash generating machine. As long as it demonstrates a capability to set aside say $ 10 bn for the spill, then it will gradually bounce back and as with all such issues, the world will return to normal. I can't see why the views of 2 Senators on dividend payments should be taken seriously btw.
BP seems to be trading at/around book value now and, to my mind, it's a clear buy.
This is my first post on ZH and I'd like to see a bit more analysis and good historical insight and a lot fewer fatuous comments. If I am looking in the wrong please, please let me know.
Why is this guy still on the air? Add -33% to his -40% in two days effort on AIG and his 'buy Bear' call and if you were a 'client' of his your hard earned savings have disappeared. How can anyone in this meritocratic sphere be allowed to continue?
Well, if you're looking at this from the perspective of the investing public, Cramer should've been off the air a long time ago.
However, from the standpoint of those for whom Cramer serves as a flunky, you know, the guys with the perfect trading quarters, he's doing his job, admirably.
That said, it's not just Cramer but the entire financial media that is working against the public. Cramer just has one of the biggest platforms and is the most insipid.
Just tune him out!
This clown will be the first to fall once the DoJ finally starts a criminal investigation on CNBC.
Cramer has opinions, like everybody, and he's been in the market for years. Cramer can make trades, and like anyone else if he gets 55% right and controls his losses on the 45% then he'll be fine. The problem is CNBC/GE and the forum "Mad Money". There is no accountability, no risk control, no portfolio and position review. He'll tell his viewers to place trades without any accountability or follow-up. It's a process problem. It's designed for entertainment, not investing.
Does he have the "just for entertainment" warning?
I would love to know if anyone has tried to track all his recommendations, less qty of shares.
I think doing the opposite of whatever Crammer recommends, should yield high returns over the years.
BP up 10% this morning. Cramer made to look like a fool yet again...