A Brief History Of Jim Cramer's Opinions On "Pillar Of Strength" Best Buy

Tyler Durden's picture

You really can't make this shit up. From the funniest person on financial comedy TV (whose most memorable TV appearance will always be roaring that Bear Stearns is fine days before its collapse), here is his "opinion" on Best Sell Buy, entirely in his own words.

November 20: Jim Cramer opines on Best Buy:

Pillars of Strength in Retail

 

The homework doesn't dovetail with the shares. That's how I felt about the way Best Buy (BBY), Home Depot (HD) and Dick's (DKS) traded in the wake of the earnings calls -- because all three were basically in all-systems-go mode for suppliers.

 

Regarding Best Buy, it looks as if the tablet is the standout. I know that Apple (AAPL) has become a hated equity, but I keep hearing good things, so I can't join the nitpicker mob. You did get a nice Chrome call-out for Google (GOOG), but that's just icing on the Google lovers' cake.

 

All three chain stores -- Home Depot, Dick's and Best Buy -- are pictures of strength, not weakness. All three stocks should be bought, not sold, on share weakness, despite whatever the "action" says about how well the companies performed. They have performed superbly against both their fields and against retail in general.

Then the next day, November 21, just in case the message was lost:

Best Buy Co. Inc. Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on November 15, 2013. The news about tablets also bodes well for Best Buy, a company that has turned around its ailing retail position to once again become one of the stronger names selling technological products to consumers. Cramer said that retail stocks were especially well-positioned at the moment, and he did not neglect to mention Best Buy near the top of his list of retail all-stars.

Fast forward to today, following a 30% collapse in the stock price in one day. From TheStreet:

It really makes you wonder what went wrong when you see a company down 30% in a single trading session, TheStreet's Jim Cramer said of Best Buy.

 

The co-portfolio manager of the Action Alerts PLUS portfolio said most analysts had been bullish on the stock, all the way into the upper $30s.

Uhm, just the analysts?

Those expectations were way off, Cramer said. The company reported sales fell 0.8% for the nine weeks ended Jan. 4, while analysts had expected growth and no real degradation in gross margins.

 

Cramer advised investors who want to buy the stock to wait until Friday because these types of violent moves tend to pan out over a two-day period.

So buy, buy, buy Best Buy at $40, but wait at $26? Gotcha.

And the piece de resistance comes from CNBC this morning:

Cramer said the electronics retailer needs a "big reset," and that analysts erred in thinking the company could compete with online shopping outlets. He said the holidays were an "Amazon quarter."

...

 

A steady stream of positive analyst notes before the busy holiday season helped set up Best Buy for its huge 30 percent drop Thursday, CNBC's Jim Cramer said.

 

"Each day one came out and then another came out," Cramer said Thursday on "Squawk on the Street." "If they had all come out at once, the stock wouldn't have been pumped to where it was. It was a serial rollout of positives."

Wait a minute. It was precisely the "steady stream of positive analyst notes" that Cramer used to pitch as the buying catalyst in Best Buy just back on November 19 and as the reason why people should not sell the stock!!!

The people who are selling [Best Buy] don't realize the power of the reiteration of [analyst] recommendations we are going to get in the next few days.

 

But... but... less than two months later it was this very reason that Cramer used as an excuse why the company sold off! It really isn't... it doesn't... it can't... it makes no...

Aghhhh #Ref!

Summarizing it all below:

 

And now we eagerly await the sequel: "Get Poor Instantly"