Out Fox The $treet

The dividend trade sure seems played out so I was shocked to see Cramer still pushing dividend stocks on Mad Money . Still no mention of Net Payout Yields. Still ignoring buybacks. Why? What is a dividend after all? Isn't it just the company returning capital to shareholders? Aren't investors more concerned about where the dividend money is coming from?  This is exactly where investors apparently get lost. What matters is the earnings yield. The profits divided by the market cap.  Is FirstEnergy (FE) a better investment because it pays a large portion of earnings to shareholders or is Apple (AAPL) better because it grows a lot faster and trades at a lower PE? Does AAPL become a better investment by paying a 5% dividend? Everybody knows it can afford such a yield.  Lately investors have become confused with what a company earns and what the company pays out to shareholders. Don't get those concepts confused or you'll get burned by the apparent latest bubble. Th...

As I've tweeted about a few times, the market has numerous stocks set up with inverse head and shoulder formations. These are usually indications of a bullish pattern where a stock or ETF is the process of a significant breakout off a bottoming process. In most cases, the breakout corresponds with the lows from the July/August plunge. Assuming stocks form this bullish technical indicator, it can be expected to reach back to levels where the plunge began. In some cases this calls for a major rally. Naturally that doesn't seem likely these days with the European debt crisis and fears of a major slowdown in China. Unfortunately for most investors that is exactly why and when it happens. The least amount of investors expect a major rally in stocks so they all pile on the upswing. It was interesting tonight to see Cramer focus on the potential H & S in the Oil Services ETF (OIH). Having not seen much mention of this occurence in other stocks, I wasn't beginning to wond...

Haven't been a big fan of Cramer lately, but I 100% agree with his opinion on the cut in the reserve ratio for China banks. This is a game changer for China as the economy was beginning to show signs of slowing. China is clearly at the beginning of the interest rate cuts. Our favorite stocks to play the reemergence of China include coal producer Alpha Natural Resources (ANR), copper producer Freeport McMoRan (FCX), crane producer Terex (TEX), oil service company Weatherford (WFT) and ChinaCache (CCIH). Disclosure: Long ANR, FCX, TEX, WFT, CCIH. Please review the disclaimer page for more details.

Most people either love or hate Jim Cramer, but they're making a mistake to just ignore his research. Last night Cramer had a great example of why 2011 will not be a repeat of 2008. Corporate balance sheets are much stronger now. For the most part, companies have shored up their balance sheets with the massive profits in 2010 and so far in 2011. Freeport McMoRan (FCX) is no exception to that common thought process. In the video below, he highlights the massive shift from a large net debt position in 2008 to a positive cash position now. So while FCX was forced to cut the dividend in the midst of the 2008 market crash now it might just increase the payout as it keeps earning loads of cash. Naturally this is just one focus point in a market with thousands of data points, but the vast majority of companies are in the same position. Record profits combined with tepid spending and hiring leaves companies in positions where they don't have to cut back spending, fire employees, or...

Last Thursday, SodaStream (SODA) reported results that easily surpassed quarterly estimates. The stock unfortunately plunged roughly 34% due to guidance that was puzzling. The company guided to flat growth in Q3/Q4 while the street was expecting a massive Christmas for the home beverage carbonation market. The confusing part was whether the company was being conservative or whether the street just doesn't understand the revenue model. SODA reported Q2 revenue increased 38% with the less established Americas up 136%. Remember this is an Israeli company that first expanded in Europe. Adjusted earnings jumped to $.42 with Americas soda makers units increasing 224%. All numbers that would lead analysts to expect numbers to only soar from here in Q3 and especially Q4. Instead the company only forecast revenue that assumes a 20% growth rate from 2010. Numbers that suggest a massive deceleration from Q2 growth of 38%. Not the growth you want in high multiple stock. During the confer...

Luckily the Cramer (Jim Cramer host of Mad Money on CNBC) pop is far more subdued then it was back a few years ago. Back then stocks could jump 5-10% just on his mention on the show. LULU jumped 1-2% after hours with the Cramer pick, but assuming the stock doesn't close above $44 tomorrow it might help support the theory of a short term top. Tomorrow's trading will be telling.

Naturally the Goldman Sachs (GS) fraud case has dominated the news over the weekend especially in Europe as governments officials in the UK and Germany jump on the shoot first read the details politics. As I type this the Asian markets are down close to 2% so basically in line with the US. Based on that it doesn't appear that the markets will be any further impacted by the news. The US futures are slightly down so it's possible the markets will begin lower Monday, but if it doesn't trade down lower then Fridays lows (SP500 1,186) its very possible that we'll see a rally into the close. The general media hpye is this leads to the much needed correction. Will the market drop 10% or more? Its possible that this leads to tougher financial regulation especially if most people fall for the mis-informed headlines. Rather it seems illogical that a trade from over 3 years ago that isn't even part of the financial markets anymore causes lasting damage. A game changer needs to...

Cramer seems to be backing our Net Payout Yield Portfolio. Retail investors continue to push massive amounts of money into bond funds instead of stock funds. As Cramer suggests, this isn't prudent with the government continuing to dilute the market with massive issuance now and in the future. The better option is clearly high paying dividend stocks which the Net Payout Yield Portfolio is loaded up with. Check out our performance at marketocracy.com . Then watch the clip and move your money into our portfolio or a similar one.

The Cloud Peak Energy IPO (CLD) priced last night at $15 which was below the original range of $16-18. Very perplexing considering the commodities sector and especially coal stocks have been very hot of late. Then Reuters published some analyst comments that made us more bullish. Basically the analysts are concerned that the proceeds are going back to Rio Tinto (RTP) and that the deal was overpriced and coal demand is uncertain. Huh? Are they serious? Why has Peabody Energy (BTU) and Massey Energy (MEE) rallied so hard lately? This really seems like Wall St playing games with a forced seller. RTP needs the money to reduce it's debt load. CLD is clearly not overvalued as both BTU and MEE sport PEs in the 20s while CLD starts in the 7-8 range. If anything CLD is extremely undervalued. Gillette, Wyoming-based Cloud Peak raised about $459 million but almost all of the proceeds will go to Rio Tinto, which will retain a 48.3 percent stake in Cloud Peak. Rio Tinto is saddled with debt st...

On Mad Money last night Cramer basically backed up our theory of a huge melt up in the markets to above 1,200. It was just last Wednesday that we wrote our theory and we had originally brought up the idea over a month ago. The comments on SeekingAlpha.com were pretty negative regarding the concept of the market moving 1,200+. Hmm...maybe we'll get the last laugh. He uses chart analysis from Dan Fitzpatrick so its backed my more then just his crazy ideas. Fitzpatrick even thinks a move to 1,272 is very possible. See below for the video and his 6 reasons to back up the chart: Cramer is taking a deep dive into a graphic representation of where the market can go, courtesy of Dan Fitzpatrick of RealMoney.com. The technicals point to a "head and shoulders" pattern and just about any way you look at these charts, the S&P looks to go to 1200. Based on the furthest distance from its 200-day moving average, Fitzpatrick also thinks the S&P could go to 1272, which is a 24% m...

On last nights Mad Money show, Jim Cramer ranted about why in the world the market would drop because of weak unemployment numbers (remember its a lagging indicator as well). For the most part, all of the economic numbers have been positive of late except for the June Employment numbers. Why has the market overly focused on it though we've pointed out how all the leading economic indicators are very positive? Think that's the issue when an economy escapes a recession. The market wants to focus on economic indicators even thought the leading ones will be positive and the lagging ones will be negative. Be careful in what you chose to follow. This economy is derailing based on the jobs report. Don't really agree that this is the most important indicator in the market as Cramer states. Its a lagging indicator so how can it be that important? Hours worked, stock market, interest rates, money flow... those are all much more important indicators. They dictate the lagging job...