XOM – First and Last Post About Jim Cramer
Perhaps it is impetuous to declare this the last post on Jim Cramer speak, since it is in fact my first post here, but I am an investor of my word. Before today I had zero intention of ever writing back something Cramer reported on, but today a subtle aside of his on Mad Money drew my whole attention like no fast lipped blurb of his before. If you want to watch the clip first and guess at what caught my attention find link below, if you wish to read the entire post and then watch don’t clink (“click link”) now. Spoiler haters don’t worry, the topic that struck me was not mentioned in the video headline or the write-up! Some times the real news sneaks up when you’re not expecting it.
CRAMER – MAD MONEY December 14th, 2015
Cramer’s ramble picked up for me when he went to his second caller, Anthony in New Jersey. Anthony described how he had “just been scaling into XOM in the mid 70’s” and asked Cramer, “long-term will it ever… is it a forever stock, will it ever rebound?”
Cramer made NO hesitation, laying down the first chink I have seen in the status quo investment thesis that touts the blue chip fossil fuel producers as an investment for the ages,
“Long-term, you’re asking long-term after a climate conference where they basically said, listen, fossil fuels are going away. So the answer is, no. Not long term. Uh, we’re going to be changing our stance throughout 2016 on fossil fuels because of what’s happened with climate concerns around the globe. Because they basically decided it’s the end of fossil fuels. And if you’re thinking for your kids, you don’t buy.”
Wow! How is this not headline material?! While we are already hearing the left pine about how Paris didn’t go far enough, money is taking very serious note. With Buffet’s divestments from long time stake in XOM this year and now Cramer “changing stance” this here anonymous nature lover is starting to see economic incentives align with the moral imperative of environmental preservation in a big way. Interesting times to be an investor.
My Positions: Overweight solar for last two years.
Long: CSIQ, FSLR, JKS, SCTY
Short Puts: SCTY, SUNE
Day following this post Solar Stocks were on fire. SCTY still climbing today. We will likely all look back on the route of the past few months as the buying opportunity of the decade in some of these names. I never like to buy when things are this hot, but the future seems bright for big solar names, I wouldn’t wait forever.
Watching: TAN
Sure to climb back toward its highs, while insulating one from the risks of picking some of the losers in this space, and there will be losers. TAN ETF receding slightly today as some solars give back a bit of the rapid gains from yesterday. I rate TAN a Buy and Hold.