TheStreet.com's Jim Cramer says these loved and hated stocks aren't likely to fall until January.First Solar (NASDAQ: FSLR) (Cramer's Take), CME (NYSE: CME) (Cramer's Take), Intuitive Surgical (NASDAQ: ISRG) (Cramer's Take) and MasterCard (NYSE: MA) (Cramer's Take) are amazing stocks.
They are loved and hated. MasterCard is constantly being sold because it is supposed to be a consumer-spending play. It is not a consumer-spending play; it is a play on the increasing use of plastic over cash worldwide and on the possibility of a fee increase next year, even as the company has been so conservative as to let you think fees are going down. The fact that it isn't down despite Capital One (NYSE: COF) (Cramer's Take) and American Express (NYSE: AXP) (Cramer's Take) shows me maybe some people are getting this distinction.
First Solar has a nonsilicon way of making solar energy devices that simply gives it a huge price advantage over everyone else in the business.
CME is the play on volatility, and it is considered to be a fee-raising machine. No one can really challenge the company. Intuitive Surgical is the Da Vinci machine, that wondrous method of surgery, and seems to know no bounds even as at this price the company will have to land a lot more business for a lot more surgeries than it has so far.
These are all $200-plus stocks, and they have no signs of quitting. (I think Apple (NASDAQ: AAPL) (Cramer's Take) joins them next week, by the way, because of a super quarter coming.)
What's so interesting to me is that these stocks have somehow become so anointed that there seems to be no reason to sell them. In other words, at this point if you own them you are reluctant to take that gain.
In fact, I don't think you will see these heavily owned by mutual fund stocks until next January. These funds don't want to take big capital gains for this year at this point. It isn't what their customers want.
So they hold on, there is so little supply and they can go much higher on very little volume.
Rather amazing even for this bull.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had not positions in stocks mentioned in this post.RELATED LINKS:
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Reader Comments (Page 1 of 1)
12-10-2007 @ 12:17PM
Donald Martin said...
Cramer says:
"In fact, I don't think you will see these heavily owned by mutual fund stocks until next January."
I think what he means to say is, "I don't think that these stocks will be heavily SOLD by mutual funds until January."
12-10-2007 @ 11:04PM
The Littlespot said...
I'd love to see a lot more $200 stocks in the coming year. Maybe your small business can be next.
List your small business in the new small-business directory
http://www.thelittlespot.biz
12-12-2007 @ 4:45PM
cerner1 said...
i think the market is in for a big dip soon