July 31st - XMSR

Very late in the posting tonight...sorry. I've added a new blog for a fast money recap at http://fastmoneyrecap.blogspot.com/ for anyone that is interested too.

Cramer started out with a comparison of AMZN Amazon.com Inc. vs. BGP Borders Group Inc. and BKS Barnes & Noble Inc. saying that AMZN is more expensive when comparing p/e ratios and that AMZN is too big to be a takeover target. There was no after hours trading for BGP or BKS, but AMZN was down. Again, I'm not a fan of shorting a sell pick from Cramer, even though high multiple tech stocks are getting hammered right now.

Cramer then compared what happened to T AT&T Inc. to what is happening with XMSR XM Satellite Radio Holdings Inc., how the stock kept going lower, but the analysts decided to hate it at its lowest point, when really at that point it was cheap and worth buying.

Closing Price: $11.60
After Hours High: $12.50
Percent Increase at High: 7.8%
After Hours Close: $12.45
Percent Increase at Level Off Point: 7.3%
Trades on NASDAQ
Sector: Services
Short %: 16.7%
Days to Cover: 5.8
% Held By Insiders: 15.7

Lots of trades after hours with XMSR, but some before before Mad Money even aired and it looks like some people guessed it was being mentioned at the beginning of the show as there was several trades near the closing price before the price spiked. There was a steady increase in the after hours price before it peaked and settled down slightly off its high. I do hate to say it that this is an ANGO no-short rule since the high for the day was $12.55 and the closing price after hours and after hours high were slightly below that. XMSR was down pretty big today ($1.07 or 8.5%), I'm assuming on news that SIRI made a new partnership. Will SIRI buy XMSR? Can they afford it really? I think if they can get cash flow positive by the end of the year like they say then maybe, but not until then in my opinion. Why take on another company before that point? I don't know if it were a monopoly if people would pay much more for it? Any thoughts? Although my no short rule applies here, and I will stick to it, I'm very glad to see that there was some after hours volume and really good price increase and it gives hope to the shorting Cramer game.

Finally Cramer took a look at some defensive stocks that should continue to perform well for the next 3.5 months. The stocks were PEP GIS HNZ MO WFC. The defensive stocks haven't really made for great shorting opportunities due to their defensive nature and the market we are in, their size, and price per s