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Wednesday, December 13, 2006

December 13th - Value vs Growth

Cramer had another semi-educational show where he looked at the types of investments you can make and explored value versus growth stocks.

He named AT&T Inc. (T) and Verizon Communications Inc. (VZ) as value plays and said both don't have great growth, but offer dividends. He said T is the better of the two because it will be less affected by cable companies moving to the "triple play" of phone, TV, and internet. He also said since these dividends are strong and hold up the price make them a safer play (but not 100% safe) and are best suited for older investors who have a shorter investing timeline. The segment didn't get much buying action after hours as both stocks are only up slightly.

Cramer's growth plays (I say plays, but he said he is just using big name companies as examples because everyone has probably heard of them) were Time Warner Inc. (TWX) and Comcast Corp. (CMCSA) because of their potential "accelerated revenue growth" and good managment. Again, neither of these stocks were up a lot after hours, with CMCSA being up more than any of the 4 mentioned. Cramer did say TWX was the better of the two for future potential even though CMCSA is better. He said the reason for this is because TWX has weaker numbers from last year to compare itself with so there is more room for a surprise.

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