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TheStreet.com's Jim Cramer says the Weyerhaeuser and Bristol-Myers stories slipped under the radar yesterday.
Did anyone even see that Weyerhaeuser (NYSE: WY) (Cramer's Take) made this great trade with International Paper (NYSE: IP) (Cramer's Take), getting out of the commodity container board business and pulling in $6 billion to reduce debt? To me, anytime you get out of a commodity business you lift your multiple, even if the rest is constrained by the housing-related lumber business.
Or how about the story that Bristol-Myers (NYSE: BMY) (Cramer's Take) might sell its baby-food business for a big chunk of change, another $6 billion.
Hmm, $12 billion in shuffles, both good for the shufflers, and no one really cares.
That's the problem with the endless focus on the financials, something I know I am falling prey to, too. Because of the focus, for example, I also missed that Caterpillar (NYSE: CAT) (Cramer's Take) traded back to $68 and change after trading up to $75, a terrific opportunity.
Lately I have been trying to focus on the two markets, the one that is winning and the one that is losing. It's tough because some of the winners are either owned by hedge funds that are trying to reduce leverage -- notably the coal, infra and ag names -- or are subject to wild swings in commodities: oil goes down $3 and National Oilwell Varco (NYSE: NOV) (Cramer's Take) goes down 10%.
Still, it is important to watch these sideshows. If BMY and WY both clean up their balance sheets and both generate good dividends and lots of cash flow, there are natural acquirers out there that will strike and you are paid to wait until they do.
Keep your eyes out on the non-main chance. That may be the only way to outperform in this very tough bear market.
Random musings: Vince Farrell is making some good points about friendless Bear. ... Bob Marcin knocking it out of the park on coal. ... Dougie, as usual, on top of the Bear (NYSE: BSC) (Cramer's Take) situations. Lots of stuff you are getting nowhere else here.
RELATED LINKS:
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 no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
3-18-2008 @ 6:30PM
glenn said...
I hold Altria stock which is about to split into 67% Philip Morris Int'l Fund and the balance stays in Altria on March 24th.
Should I hold or sell? I have no indicators of what the PMI will do, grow or fade?
Please advise.
Glenn
3-18-2008 @ 6:31PM
glenn said...
I hold Altria stock which on March 24th will split into 67% Philip Morris Int'l and the balance with Altria.
Should I hold or fold?
Glenn
3-18-2008 @ 9:02PM
kcoryms said...
I love this quote from the article "Investment banks soar on strong earnings". "It is no longer OK to be in a black box," Lehman Chief Financial Officer Erin Callan told The Associated Press. "There will be a lot more honesty from us as an industry, and it is painfully obvious this will be the biggest change." WOW the most painful change is to be honest. I guess if they quit stealing they would burst into flames. Well....... I won't even go there.
3-20-2008 @ 7:45AM
Sam said...
Should I sell Bear yet? ??????????????????????????????????????????????????????????????????????