NEW YORK (TheStreet) -- The government shutdown is lasting much longer than most had thought it would and TheStreet's Jim Cramer told Debra Borchardt that it's a binary event.
In other words, investors want to own stocks if there is resolution in Washington and don't want to own stocks if the U.S. defaults.
In regards to a stock such as JPMorgan (JPM), Cramer said that investors could factor in a slowdown in its mortgage business, but couldn't factor in a default.
He said that the Treasury Department and President Obama said this wouldn't be something to worry about, and yet here we are. With both political parties digging in their heels, someone has to be willing to negotiate. According to Cramer, whoever fails to do so will cause a U.S. default and nobody wins if that happens. Investors can use deep-in-the-money call options to limit risk and use stop orders to limit losses. Cramer concluded that there hasn't been any big pullback to put money to work. The stocks that have had deep pullbacks have had something wrong with them, such as Cisco Systems (CSCO) and Union Pacific (UNP), which have warned that things won't be that good. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Top 5 High Tech Companies To Watch For 2014: Myrexis Inc(MYRX)
Myrexis, Inc., a biotechnology company, engages in the development of small molecule compounds with novel chemical structures and distinct mechanisms of action. The company has a pipeline of differentiated product candidates in oncology and autoimmune diseases. Its lead product candidates in development include Hsp90 inhibitor program, which consists of MPC-3100 that is under Phase I clinical trial for the treatment of cancer and MPC-0767, which is in preclinical stage for the treatment of cancer; MPC-8640, an orally bioavailable pro-drug that is under preclinical stage for the treatment of a range of cancers; and MPI-485520, an oral anti-interferon, which is in preclinical stage for the treatment of autoimmune diseases. The company was formerly known as Myriad Pharmaceuticals, Inc. and changed its name to Myrexis, Inc. in July 2010. Myrexis, Inc. is headquartered in Salt Lake City, Utah.
Top 5 High Tech Companies To Watch For 2014: Harleysville Group Inc.(HGIC)
Harleysville Group Inc., through its subsidiaries, engages in the property and casualty insurance business primarily in the eastern and midwestern United States. It underwrites personal and commercial property and casualty coverages, including automobile, homeowners, commercial multi-peril, and workers compensation. The company markets its insurance products through independent agents to individuals, and small and medium-sized businesses. Harleysville Group Inc. was founded in 1979 and is based in Harleysville, Pennsylvania. Harleysville Group Inc. operates as a subsidiary of Harleysville Mutual Insurance Company.
10 Best Penny Stocks To Invest In 2014: ServiceSource International Inc.(SREV)
ServiceSource International, Inc. manages the service contract renewals process of maintenance, support and subscription agreements for technology and technology-enabled healthcare, and life sciences companies. The company provides end-to-end management and optimization of the service contract renewals process, including data management, quoting, selling, and service revenue business intelligence. It offers an integrated solution that consists of Service Revenue Intelligence Platform, a data warehouse of transactional, analytical, and industry data that provides insight into the business; service sales teams working under its customers? brands; and Service Revenue Performance Suite, a suite of cloud applications. The company?s cloud applications include Analytics Cloud, which provides customers with dashboards to view and analyze service revenue performance; Service Sales Cloud that provides renewals analytics and pipeline management used by service sales teams; and Chan nel Sales Cloud, which offers channel partners and resellers with online access to their specific renewals opportunities and their performance. Its cloud applications also comprise eCommerce Cloud that provides self-service capabilities to end customers through a secure online portal; Installed Base Intelligence Cloud, which offers a single repository to analyze the data, to flag anomalies and missing data elements, and to identify cross-sell and up-sell opportunities; and Dynamic Quoting Cloud that provides an easy-to-use tool for sales representatives and channel partners to create and modify service renewal quotes. The company sells its solutions directly through sales representatives in North America, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. ServiceSource International, Inc. was founded in 2002 and is headquartered in San Francisco, California with additional offices in Colorado, Tennessee, Ireland, the United Kingdom, Malaysia, and Si ngapore.
Advisors' Opinion:- [By Lee Jackson]
Service Source International Inc. (NASDAQ: SREV) is a small cap name with big possibilities. The company provides recurring revenue management contracts maintenance, support and subscription for technology and technology-enabled health care and life sciences companies. The consensus price objective for the stock is $14.
- [By Evan Niu, CFA]
What: Shares of ServiceSource (NASDAQ: SREV ) have soared by as much as 24% today after the company reported first-quarter earnings.
So what: Revenue in the first quarter totaled $61.1 million, higher than the $60.4 million consensus estimate. The non-GAAP net loss of $1.5 million, or $0.02 per share, was also better than the $0.04-per-share loss that investors were expecting. The company inked four new Renew OnDemand subscription deals during the quarter.
Top 5 High Tech Companies To Watch For 2014: News Corporation(NWSA)
News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.
Advisors' Opinion:- [By Lee Jackson]
News Corp. (NASDAQ: NWSA) boasts a cable-leading news operation and a host of additional entertainment properties. The consensus target for the stock is $17.30.
Top 5 High Tech Companies To Watch For 2014: Soltoro Ltd (SOL.V)
Soltoro Ltd., a mineral exploration company, engages in the exploration and development of mineral resources in Mexico. The company primarily explores for silver, gold, and copper. Its principal property includes the El Rayo silver-gold project covering approximately 10,036 hectares located south of the town of Guachinango in Jalisco, Mexico. Soltoro Ltd. was incorporated in 2005 and is based in Toronto, Canada.
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