Wednesday, November 01, 2006

Cramer Insanity Watch....

It won't be long until we'll be able to look back and laugh at the quaint antics of that lunatic on CNBC Jim Cramer. Unfortunately, his little show has the potential for costing people some serious coin. It is no different than Dr. Phil trying to diagnose someone in 10 minutes on his show. To offer stock advice one stock at a time with no time horizon or knowledge of the investors' risk tolerance is insane. But it gets ratings so here we are.

I've only occasionally seen the show, but I tried to sit through a whole episode last week. I wasn't successful. Anyway, during his show he decided to pound the table on Lowe's upcoming quarter. Yikes. Has he been in a Lowe's lately? I was in one tonight where a stack of light fixtures was marked down from $38.95 to $1.98. Granted they looked like a large drop of mud, but that's still a huge markdown.

Lowe's is the most closely tied retailer to the home equity boom that I can imagine. That boom is over and Lowe's has not seen a bottom (down about 2% since Cramer called the bottom).

1 comment:

Scott Atkinson said...

You wrote:

"Has he been in a Lowe's lately? I was in one tonight where a stack of light fixtures was marked down from $38.95 to $1.98. Granted they looked like a large drop of mud, but that's still a huge markdown."

I love this - a detail that says much about the big picture.

Nicely done.

Scott Atkinson