free counter statistics

Tuesday, September 26, 2006

September 26th - WAG DIVX

Cramer started out by talking about Walgreen Co. (WAG) and said it was a broken stock but not a broken company and was hit due to Walmart's move to cheap generic drugs and lowering margins and potential slowing of growth.

Closing Price: $45.11
After Hours High: $45.77
Percent Increase at High: 1.5%
Price Level Off Point: $45.75
Percent Increase at Level Off Point: 1.4%
Trades on NYSE
Sector: Services
Short %: 1.74%
Days to Cover: 5.9
% Held By Institutions: 0.64%

Too expensive and too big for my taste on a short here not to mention it is trading below its high for the day of $45.85 so the stock showed some excellent strength today and this Cramer recommendation may just add to it.

Next Cramer looked at a company that just had its IPO DIVX (DIVX) and said it was a buy with tight limit orders and not to trade after hours! Cramer said it has a connection with Google and deals with transferring files which includes Google's toolbar.

Closing Price: $18.13
After Hours Price: $19.60
Percent Increase: 8.1%
Trades on NASDAQ
Sector: Technology
Average Volume: 1,162,600

This one kept climbing after hours the more Cramer spoke of it. This is the first time in a long time I have seen a stock react like this in the after hours market, especially since Cramer said to use tight limits and to avoid the after hours. The stock was even down today $0.37 and now it is up over $1 on the day! I would say that this is an easy short, but the insane spike after hours certainly gives me some hesitation. I would be shocked if this went above $20 tomorrow but that would certainly be the price I would watch and if it breaks that tomorrow in the pre-market or at the bell then I would stay away, otherwise it will likely drop at least some at the open in my opinion but I would take profits quickly.

Finally Cramer did a stock screen to find stocks with a 50 billion market cap, 1 year earnings of 25% with 20% growth for next year. Only 4 stocks came up and they were America Movil SA de CV (AMX) Google Inc. (GOOG) Apple Computer Inc. (AAPL) and Genentech Inc. (DNA). Cramer then said DNA is the "cheapest" and has the most upside potential. DNA closed today at $79.66 and is far to expensive for shorting off the Cramer recommendation in my opinion.

Comments on "September 26th - WAG DIVX"

 

post a comment