CNBC’s Jim Kramer on Wednesday outlined whether companies that recently reported quarterly profits could be invested based on his newly introduced valuation system.
The main reason why this market has become so difficult is that we finally have less hot profits, but Wall Street does not accept its usual position of buying shares that issue NABAF results – this “is not so bad,” as much as he fears, “Crazy Money,” the host said.
“Six months ago, you could get away with NABAF all the time. Forgiveness reigns for two or three days. Not anymore,” he added.
To keep up with this new market, Kramer has developed a new method for ranking the shares of companies that have recently reported quarterly profits.
“There are many stocks that can rise now that they have fallen sharply from their tops, but we need to understand what can make those rises possible,” he said.
Here is Cramer’s three-tier inventory ranking system:
- Exclamation mark (!): This symbol represents “good news, which means that stocks have the right to rise despite the wider sale,” Kramer said.
- Question mark (?): This means that the shares “go down almost no matter what,” he said.
- asterisk
: “Profits get an asterisk if there is something far from the company that went wrong, something you can easily explain. … So maybe the shares are worth buying here because they can be forgiven later “Kramer said.
“An exclamation mark? Yes. A question mark? No. An asterisk, maybe, just maybe, and this is where the money can be made after the win, because it’s the decent ones that haven’t started yet,” Kramer said.
- Here are the actions he chose to highlight and his assessment of each:
- Visa :!
- Microsoft :!
- Purpose:!
- Boeing:?
- Texas Instruments: *
Alphabet: *
Disclosure: Cramer’s Charitable Trust owns shares in Alphabet, Boeing, Meta and Microsoft.
Add Comment