Wrong! Dispatches from the Front: Cramer Picking Up Some Bargains
By James J. Cramer
8/4/98 3:19 PM ET
Picking good stocks is what I do. Today many of my good stocks are getting clocked. I do not care if the chart is bad on these stocks, I do not care if Ralph Acampora says that stocks are going to go lower. Again, I buy stocks.
So I am buying. I am buying old tech, because old tech is going from bad fundamentals to good fundamentals. I am buying stuff that I have conviction will be higher three to six months from now, even if I have to take some Acampora-inspired pain. I don't like pain, but be darned if I am going to wait until he gives me the buy signal to pick up Compaq (CPQ:NYSE).
What do we know about the market? That it is ugly. That is oversold. That hasn't gotten you anywhere. We know that the fear is so palpable that you can cut it with a knife.
I can tell you that the number of derivative put programs -- programs designed to profit from a severe downturn -- was the highest I have ever seen in my career save 1987.
I can't believe they can all be that right. I have seen massive capitulation in a whole series of Dow names and I am nibbling at some of those too. And I can tell you that the stocks that have corrected, again, old technology that goes into PCs and makes the Net work, seem to act great, certainly much better than a down-200 day. That's where I am making my stand.
Of course, we are all on our own in this market. Which is why I continually fall back on buying what I have conviction in. If you have conviction, you have to ask yourself what exactly are you waiting for? Some technical level? Some bell to go off? It never goes off. You have to buy when you can, not when you have to.
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James J. Cramer is manager of a hedge fund and co-chairman of TheStreet.com. At the time of publication his fund is long Compaq, although positions can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending a letter to TheStreet.com at letters@thestreet.com.
Copyright 1998, TheStreet.com, All Rights Reserved
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