Jim Cramer - Stocks Are Cheap

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We're getting sign after sign that stocks are worth more than people are paying for them. Companies are being chronically undervalued by the market. We are seeing a classic tell that Mr. Market won't pay the full value for stocks. There are a lot of acquisitions that are all about the stocks of companies being too cheap relative to what other people are willing to buy them for. They aren't just buying a few hundred shares, they are buying the entire company. Companies are just too cheap in the real world.

FFIV has been volatile. It was down significantly, but since then it went right back up. The same thing happened with VMW.

The market was screwy for selling CMI, but the market came to its senses at last. Downgrades don't stick. When analysts slash their price targets, the stocks can bounce back the next day, even when there is no news to drive the stock up.

Companies can bring out more value with the stroke of a pen. CHK recently had a 4% increase. The price is probably worth twice its current stock price.

What about AAPL? People were worried about Steve Jobs. Now they are realizing that it will go up to $400.

APKT went up huge in just a week. These types of moves haven't happened since the mid nineties. These are more signs that the market is just too cheap. You need to own stocks, but you don't need to panic to get in. There will be another correction and a chance to get in.

PZE is an oil stock, and it's an okay stock. If you own this stock, you'll be fine.

WY is a stock with a huge run. People are shocked that it went from $15 to $23. You might want to sell a little and hold on to the rest.