June 22nd - WHR ALL ZZ
Cramer's first segment featured WHR Whirlpool Corp. a stock that closed at $80.33 today. Obviously a very expensive stock that doesn't have a compelling reason to short. It did trade after hours to a high of $81.00 but that's only an increase of 0.96%.
Cramer's next pick was an insurer ALL Allstate Corp. Again, another expensive one that trades at a closing price today of $53.04 and has gone up to $53.66 after hours. Too expensive and too big for me. Is Cramer trying to compete with Fast Money by trying not to look bad and picking bigger stocks that are less likely to move as much as his picks did today....well into the red!
Finally, Cramer spoke of his bad pick of ZZ Sealy Corp. and said to back up the truck now, even after it has fallen from $18 to $12 since its IPO.
Closing Price: $12.20
After Hours High: $12.83
Percent Increase at High: 5.2%
Price Level Off Point: $12.78
Percent Increase at Level Off Point: 4.8%
Trades on NYSE
Sector: Consumer Goods
Short %: 0.37%
Days to Cover: 0.2
Surprisingly low current short % considering how terrible this stock has done, but that may indicate a bottom in the stock sicne the Short % Increase/Decrease is -34.44% and I take that to mean that the short interest has declined that much. This was up today (up $0.08) on a down day which shows some strength but the volume was well below the average. I don't see this one taking off to great highs tomorrow since its biggest up day since its IPO was only about a .30-cent gain, and we are up around .60-cents already tonight. I would keep an eye on the $13.00 level and would look to short at the high $12's assuming it doesn't break $13 early in the morning. Keep an eye out for any big block trades too since this is an NYSE stock, with lots of people who have probably lost a lot of money already.
posted by CramerTracker @ 6/22/2006
5 comments
Comments on "June 22nd - WHR ALL ZZ"
-
Anonymous said ... (June 22, 2006 6:56 PM) :
-
CramerTracker said ... (June 22, 2006 7:08 PM) :
-
Anonymous said ... (June 22, 2006 7:21 PM) :
-
CramerTracker said ... (June 22, 2006 9:19 PM) :
-
Anonymous said ... (June 23, 2006 9:00 AM) :
post a commentWhat do you mean by 'Fast Money'
Fast Money is a new show that aired on CNBC last night at 8pm Eastern time. It was hosted by the same host from On the Money Dylan something. He had 4 analysts and they made stock picks and even discussed some technical analysis (which Crmaer normally makes fun of). It doesn't look like Fast Money is on tonight, and I couldn't find anything about the show online, so I don't know if and when it will be on again, but it might have Cramer a little worried.
As a long term investment, All-State is the only good one here. Excellent management. They have a turn-around plan in place for the stock which seems to be working very well. All-State has always been a tight wad. They are neither kind to their employees or their customers. However, thats translated to big profit.
As for Sealy and Whirlpool, what is Cramer thinking??? Think about it. As the demand for houses slow, will either Whirlpool or Sealy be doing any better? As interest rates increase,is anyone going to buy a new bed or washing machine. Doesnt make sense.
The Sealy companies financials are a disaster and its expensive trading at a P/E of 17. Considering the slowing demand for housing and bad financials, I wouldnt even touch it until the P/E reaches 12. I think this company has a little more room to slide.
As for the Cramer effect, I believe Sealy may be the best play here. My belief is that it will come down ever further.
Like I said, are these times in which you will buy a new bed? Maybe he is banking on hotels buying new beds?
I personally don't understand bed stocks. Beds are good and normally guaranteed for 20 years! How often do people need to buy new beds? Why Cramer would dare stick his neck out on what he said was his worst most recent pick is beyond me. He might be just trying to help people get out with less of a loss. Of the 4 analysts that cover the stock 2 are a buy and 2 are a hold (according to Yahoo!). Not to mention Cramer gave ZZ the bear on June 19th in the lightining round when it was trading 20 cents lower than it was today! I don't have a problem with Cramer chaning his mind because situations change, but in this case his reason for picking the stock is that nothing has changed with the company but the stock price has dropped.....well, that was the same situation on the 19th. Sorta makes it hard to trust his lightening rounds doesn't it?
His logic is proper for a hedge fund manager, but its not right for the average layman investor. Its a shame that there will be some people who watch the show and will invest thousands of dollars into his picks.