Problems with Jim Cramer's Mad Money Performance

[insidemadmoney]

Excerpt: http://www.insidemadmoney.org

There is a serious problem with www.thestreet.com’s Mad Money
performance: it only tracks picks for the last two months. Why only two months? Is this due to a technical reason or does it have deeper implications?

A few weeks ago, a new section appeared on Jim Cramer’s very own www.thestreet.com: the Mad Money Performance section. This section was originally a fan website which tracked Jim Cramer’s performance independent of thestreet.com. This website was eventually acquired by www.thestreet.com for an undisclosed figure and it is now fully integrated into it. The format has remained largely intact, however.

A special note from Jim Cramer on the main page of Mad Money Performance can be found here:

Ever since I started in this business, I have cared passionately about my record. I prided myself on making sure that people knew how I was doing at all times. I also insisted that my record be audited by others, outside my control.

I am doing that same thing now right here. I want people to be able to see exactly what I say, when I said it, and how I feel about each stock now. I am doing this because my personal reputation is at stake and nothing is more important in business than personal reputation.

With that, I turn my performance monitoring over to this unique service and I thank you for taking the time to monitor me, as you should, regularly, to be sure that I am doing my job in trying to make you Mad Money.

Mad Money Performance only tracks picks for the last two months, however. One might speculate that Mad Money Performance has only been tracking picks for two months, thus they only have two months worth of data. This is false; the original website had been tracking picks for at least the past 3 months. In fact, the main page explicitly states that only the last two months of shows are tracked.

The fact that only the last two months are tracked in several cases covers up the fact that Cramer has often changed his position on a number of stocks often in a short amount of time.

For example, Corning (GLW) has long been recommended by Cramer for many months. Approximately two months ago, however, there was a period of time that Cramer was bearish on the company. Looking up Corning on the website only shows one negative recommendation followed by four positive recommendations. The original positive recommendations before Cramer turned bearish on Corning are not there.

Another famous example is China Medical Technologies (CMED). Cramer originally was very bearish on it, changed his mind once he found out GE and some other American companies were involved with it, and has most recently changed his mind again. Again, the website only gives a partial picture of this.

Although it can be strongly argued that Jim Cramer has changed his mind based on valid events or information, it is still alarming that only the last two months of shows are tracked. It can also be argued on the contrary by bringing up several more examples in which Cramer changed his mind. Why only two months? Is it only two months for technical reasons? Or perhaps www.thestreet.com doesn’t want to offer enough information to make meaningful long term analyses of Cramer’s recommendations?

Source: http://www.insidemadmoney.org

[BOOOYAHOOO!]

You can't track Cramer with any amount of accuracy simply because he doesn't actually make very many sell calls. Most of his sell calls are "don't buy" calls. He did that recently with MSO at 18.00 which was still a ways from his entry prices of 31.00 and 25ish, but well off the sub 15.00 low. Most of his short term in and out trades are poorly executed. He failed on SIRI at least 4 times that I can think of. You mentioned GLW. He got in at 21+ last time up. As soon as he got in it tanked to 18.00ish. He gave no advice. He just pumped it again the last time up above 21.00. How poor of a trade has this 3 month debacle that is GLW been so far for Cramer? Luckily for Cramer he got GOOG right. He can hang his hat on GOOG since it seems he has given up on SHLD. Otherwise Cramer is a very poor trader that makes his best gains just after he tells the masses about his new favorite play. Why do we even have to track his results? :?

[oldboldpilot]

You're treading on dangerous ground. When I criticized Cramer for his
bad calls I was soundly trounced by his crazed followers/admirers. It is
absolutely amazing to me that there are peoplewho actually feel the guy
is some kind of guru. I made the mistake of buying PLAY after he
mentioned it and I did cursory research. BAD MOVE.

There are those who say they watch him for the "entertainment" value.
Excuse ME......what entertainment ? Watching chairs fly and listening to
weird sound effects ?? I watched Cramer when he was with Larry Kudlow
and I couldn't understand what the guy was doing on TV . I got more
value listening to Louis Ruykyser.

[jacobnbr1]

You're treading on dangerous ground. When I criticized Cramer for his
bad calls I was soundly trounced by his crazed followers/admirers. It is
absolutely amazing to me that there are peoplewho actually feel the guy
is some kind of guru. I made the mistake of buying PLAY after he
mentioned it and I did cursory research. BAD MOVE.

There are those who say they watch him for the "entertainment" value.
Excuse ME......what entertainment ? Watching chairs fly and listening to
weird sound effects ?? I watched Cramer when he was with Larry Kudlow
and I couldn't understand what the guy was doing on TV . I got more
value listening to Louis Ruykyser.

i will second that vote!

[BOOOYAHOOO!]

You're treading on dangerous ground. When I criticized Cramer for his
bad calls I was soundly trounced by his crazed followers/admirers. It is
absolutely amazing to me that there are peoplewho actually feel the guy
is some kind of guru. I made the mistake of buying PLAY after he
mentioned it and I did cursory research. BAD MOVE.

There are those who say they watch him for the "entertainment" value.
Excuse ME......what entertainment ? Watching chairs fly and listening to
weird sound effects ?? I watched Cramer when he was with Larry Kudlow
and I couldn't understand what the guy was doing on TV . I got more
value listening to Louis Ruykyser.

Fokes won't beitch at me cause they know they'll get their butts kicked. That's why I can say whetever I want. :lol: I think Cramer is entertaining though. I like when the lightening round buzzer rings signaling the end of the session and Cramer does his "Nooooooooooo!" :lol:

[Hexum]

Here's a thought. Do your own research. The only people that bitch about Cramer are the ones who lost money on his picks. Like I have said a thousand times - If you go risk your money on other peoples stock picks you are asking to lose a lot of money! Merry Christmas!

Jacob - Hows that CHK Put treatin ya? :lol: jk

[jacobnbr1]

Here's a thought. Do your own research. The only people that bitch about Cramer are the ones who lost money on his picks. Like I have said a thousand times - If you go risk your money on other peoples stock picks you are asking to lose a lot of money! Merry Christmas!

Jacob - Hows that CHK Put treatin ya? :lol: jk

it was not chk. it was appl and wmb, i ate crow a few weeks ago on aapl. i did do calls on appl from 60 to 70 though. but i am still short appl. i got all year for appl to go down.

[Thierry Martin]

You're shorting this?

http://finance.yahoo.com/q/ta?s=AAPL&t=5y&l=on&z=m&q=l&p=v&a=&c=

[jacobnbr1]

You're shorting this?

http://finance.yahoo.com/q/ta?s=AAPL&t=5y&l=on&z=m&q=l&p=v&a=&c=

yes. i got some leap puts on it.

[BOOOYAHOOO!]

You're shorting this?

http://finance.yahoo.com/q/ta?s=AAPL&t=5y&l=on&z=m&q=l&p=v&a=&c=

yes. i got some leap puts on it.

Worry free investing! Learn it, live by it! :wink: The amazing thing is that most fokes have no clue about how far some of these market leading high flyers need to fall. So when somebody questions your theory about shorting AAPL, WMB, or CHK just remind them there is more than one way to skin a cat. I equate a long term put on AAPL as moving over to the $100 minimum bet table at da casino and away from da $5 tables. Too many fokes who doan know how to play da game at da $5 table. :D If you look at Thierry's chart you can see where my $25 target isn't probably even going to be low enough. At first I wasn't sure if it was da AAPL chart, I thought it was the chart of the stock Parabolic! :lol:

[Hexum]

Posted: Tue Nov 01, 2005 9:32 pm Post subject:

--------------------------------------------------------------------------------

woooow.i wonder what my puts look like? i am so worried about appl i never even payed attention to chk. i figured it held in there being xoi and wmb was holding... thanks for pointing this out



Jacob, you posted this a while back. Did they expire?

[jacobnbr1]

Posted: Tue Nov 01, 2005 9:32 pm Post subject:

--------------------------------------------------------------------------------

woooow.i wonder what my puts look like? i am so worried about appl i never even payed attention to chk. i figured it held in there being xoi and wmb was holding... thanks for pointing this out



Jacob, you posted this a while back. Did they expire?

i sold those the next day. i thought you were inquiring on the positions i am holding now 8) i sold chk puts and held wmb puts for some crazy reason, i am currently in the hole on wmb puts which is the same sector as chk...( i think so) :?:

[BuyOnDips]

Yeah, I miss Louis Ruykyser's show. That guy was smart and witty. He's the first guy that made investing and economics fun to listen to and watch on television.

[pietistic]

Cramer's a nut-job. Anyone who buys his picks is asking for a bludgeoning by the market.

[enough_2b_dangerous]

I made the mistake of buying PLAY after he
mentioned it and I did cursory research. BAD MOVE.

I don't relish the thought of your losing money, honestly. That being said; framing your argument against Cramer with "cursory research" and "because I heard it on TV" is nothing short of silly.

Book, chapter, verse? Nah .. but tips are for waiters, just because someone says it on TV doesn't make it so, and homework (not cursory) is an exercise for the reader.

Oddly enough, PORTALPLAYER INC http://finance.yahoo.com/q?s=PLAY is at $28.57 (2005-12-29). Looks like it's finally recovered from all the attention.

[oldboldpilot]

If there is anything I relish, it's people who slam others for the way they choose to invest. You must be another Warren Buffet (who didn't fare so well this year). I guess the way to invest is to ferret out every little piece of information avaiable, THEN make a still uneducated guess and throw the dice because, essentially, that is what you are doing. Take any or every high flyer in the last year except Google and there has been a headline that has decimated the stock. You can take all of the research you want but the vagaries of the market are still a great unknown.
Maybe you will learn this given enough years in the marketplace. Nah, I take it back...you won't learn squat !

[enough_2b_dangerous]

Now I'm thinking you're too educated for your own good.

You tore my name to pieces with all the cunning of a 6th grader who's been held back a year, ouch!

Another Buffet? That was sarcasm, correct? Clever .. ouch again!

As a crazed follower and admirer of common sense and logic, I take offense at your sideways attempt to score points by way of misdirection and utter noise. Furthermore, I'm amused by your condescending me from way up high in the hole you dug.

First it was Cramer's fault, next the unpredictable market, now it's the stock?

You're understandably pissed, at yourself, so just admit it and stop flailing about randomly. After that, I would indeed recommend Cramer's book (http://www.thestreet.com/tsc/cramerbook) for some insight into why you shouldn't blindly follow Cramer's recommendations off the TV.

[oldboldpilot]

You couldn't have chosen a more appropriate username. I would gladly
enter into a battle of wits with you but it is obvious that you are
unarmed. Rather than trade barbs, maybe all would be better served
to use this forum productively rather than prattle on about that which
you obviously know so little.
If you persist with your homilies may I suggest you make better use of
the language.

[enough_2b_dangerous]

I would gladly enter into a battle of wits with you but it is obvious that you are unarmed.
You're no Rob Reiner and I doubt you're Sicilian, so kindly STFU.

Your line is: "As you wish.".

My objection to your utter stupidity is in fact, productive. It serves as fair warning to anyone reading your baseless and misdirected accusation that Cramer is somehow responsible for your failing to take your money seriously.

Until I replied, you didn't elaborate about your predisposition to defeatism, gambling and fingerpointing. All of which puts your original pissing-and-moaning in a new light. Your being exposed = productive.

Can we expect more of your talking without saying anything, or are you done now?

None of the information contained in “Mad Money” constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

[Luc1Grunt]

A couple beers and ring girls would make this really interesting!!!

[oldboldpilot]

I would continue this silly game but I can make absolutely no sense of
your last ridiculous, vacuous post. That being the case, I believe I shall withdraw and enter into
a more productive endeavor such as cutting my toenails.
If you refer back to the heading of this thread, you MAY notice that I am
not the only Cramer detractor, but that isn't what you came to argue
about is it ?
As for my investments..they're doing just fine (with a misstep now and then) thank you for asking.
When next we meet ( and I SO look forward to it) I would urge
you to hone your literary and vocabulary skills for it appears you are
operating at somehat of a deficit. My guess is that you were a high school
dropout ! N'est ce pas ?

Ta !

[enough_2b_dangerous]

8O or :roll:, either is appropriate.

[pmayo]

Yeah, I miss Louis Ruykyser's show. That guy was smart and witty. He's the first guy that made investing and economics fun to listen to and watch on television.

I miss him also but never got his newsletter. I heard he left the air for health reasons but may come back.

As for Cramer, I'm reading his book. The main thing I'm seeing there is watch the Fed and GDP for sector rotation timing. Beyond that it is commitment to your own homework.