Cramer on BloggingStocks: China-led drop offers a time to buy

Posted Aug 19th 2009 10:00AM by Jim Cramer
Filed under: Apple Inc (AAPL), Ford Motor (F), Exxon Mobil (XOM), China, Market Matters, Citigroup Inc. (C), Target Corp. (TGT), BB and T (BBT), Bristol-Myers Squibb (BMY), Wendy's Intl (WEN), BHP Billiton Ltd ADR (BHP), Freep't McMoRan Copper (FCX), Stocks to Buy, Union Pacific Corporation (UNP), Cramer on BloggingStocks, Potash Corp. of Saskatchewan (POT)

From TheStreet.com Network

TheStreet.com's Jim Cramer says even stocks without exposure to that country will probably be on sale today.

If China has pulled back 20%, do we have to pull back 20%, even though they were up 80% and we are up 9%? Are we so in lock step now that when China catches a cold, we are the ones with pneumonia?

I don't think so. It's such an easy story to stretch out, though you can see that our Freeports (NYSE: FCX) (Cramer's Take) and our Exxons (NYSE: XOM) (Cramer's Take) can get hammered.

But how about the 85% of the market that doesn't sell into China? Do we decide to take back the Target (NYSE: TGT) (Cramer's Take) gains of yesterday? How about the Apple (NASDAQ: AAPL) (Cramer's Take) gains -- I mean, they will eventually sell iPhones there, so eventually their numbers will be destroyed by the sales that they get there because the Shanghai index is down, right?

I am sitting here right now trying to figure out how much Express Scripts (NASDAQ: ESRX) (Cramer's Take) should be down off of China. Or Ford (NYSE: F) (Cramer's Take). Or Citigroup (NYSE: C) (Cramer's Take). Or BB&T (NYSE: BBT) (Cramer's Take). Frankly, it's a tough one -- I am guessing 20% because prevailing wisdom now says 20%.

What's the hiccup for Wendy's (NYSE: WEN) (Cramer's Take)? Panera (NASDAQ: PNRA) (Cramer's Take)? Bristol Myers (NYSE: BMY) (Cramer's Take)? Aren't they all a form of Vale (NASDAQ: VALE) (Cramer's Take)?

I do love the linkage between BHP Billiton (NYSE: BHP) (Cramer's Take) and China, and I get the Union Pacific (NYSE: UNP) (Cramer's Take) linkage and the Potash (NYSE: POT) (Cramer's Take) linkage.

But some of the other stocks that will come down today off of China are harder for me to figure out.

Or maybe I have ... they shouldn't go down at all. They will though. Sounds like an opportunity to me.

Jim Cramer is co-founder and chairman 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 was long Express Scripts, Bristol Myers and Vale.

Tags: aapl, bbt, bhp, bmy, c, china, esrx, f, fcx, featured, jim cramer, JimCramer, pnra, pot, tgt, unp, wen, xom

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Reader Comments (Page 1 of 1)

8-19-2009 @ 10:28AM

ebrandler34 said...

This is where Cramer looks guilty of shilling for the Bulls. It would seem that he is desperately trying to calm the coming storm. Just like two weeks ago when he said to ignore fundamentals and buy-on-faith, because the train's leaving the station.

In fairness, he has lately been talking out of TWO sides of his mouth, as on one hand he says "take some profits" and then (like today) says "jump in the deep water".

China's numbers are a fraud, and as with Stalin's glorious Five-Year Plans, the reality will not match the propaganda.