Johnson & Johnson: "Johnson & Johnson has rallied from $75 to $89 largely because of its big dividend. If rates go up the appeal should diminish," said Cramer. "I can see this stock retreating to $80."
3M: "This is one I am very worried about," Cramer admitted. "3M reported a very disappointing quarter and yet failed to go down. In a real selloff this one's got downside; maybe down to $97."
United Health: "It reported a good quarter and they did a big buyback, but I don't think it was good enough to stay at $61 on a bad employment number," Cramer said. "I would think that this one could easily travel back to $56-57."
In addition Cramer sees potential weakness in a few other Dow components depending on stock specific catalysts.
"IBM could trade down $10 on negative news. Also Wal-Mart could lose 10% in a heartbeat," he said. In addition, McDonald's could go back to $92 and Verizon and AT&T may be vulnerable.
"IBM could trade down $10 on negative news.
and that would be a little less than a 5% move down ... considered to be a very healthy correction by everyone's
take .... that statement certainly applies to the over 5000 listed stocks .... but even IF such action occurs ,
IBM is still on track for 300 ... g
Cramer's format is not unlike a woman's .... DRAMA , URGENCY , his inflections telegraph an "act now" mind
for the novice and intermediate investor .. Cramer is excellent with demonstrating analysis ... forget his
specific calls , do your own DD .. he's teaching you how .... next time you watch him , sit back with
rock glass of your favorite scotch , with no more than 1 cube .... g
He is making the point that dividend paying stocks are over valued! All of them! PCG has 5% EPS growth and a multiple of 25! MCD has single digit EPS growth and a multiple of 20! IBM is growing earnings at about 10% with a multiple of 15, and that is too rich.
Investors pulled money out of the bond market and put them in safe, dividend paying stocks. Look for the growth stocks to take off in the second half of 2013, and the blue chips take a breather.