PDA

View Full Version : Losing and Winning in CramerLand


zyzzyva57
03-05-2006, 09:27 AM
Okay, you just got hooked on Cramer. W-wow, you have your Scottrade set up. Now, you are ready to sit back and pick off the winners. Before you give up your day job at your neighborhood salt mine, remember the following:

“Capstoning—Last summer when I began to watch Cramer and decided I wanted to participate in “Mad Money,” I bought into Capstone, because almost nightly Cramer pushed it. I learned a lot right off: don’t buy high to have to sell low (not as an easy dah-h as it may seem) :). I rode this falling knife down and down before I caught onto the “catching a falling knife” and NOT holding on to a loser. Cramer most resent "Capstoning: was with Sirius and to a large extent Google. Listening to him you would have bought into Google around $300 dollars to see the stock reach $425+. He “Capstoned” Google while the stock settled in on the $350 jiggle spot and you held on to see your profits evaporate.

“ViriSigning”—What a great company ViriSign (vrsn)! You have to register dot com and dot net with this company and pay it $6 a month royality. Good metrics. How could this company lose?! It can’t, so it flat lines forever. His Best of Breeds usually do this, e.g., MicroSoft is an example of “VeriSigning.” (Cramer likes to hide behind Best of Breed as a filler material, because you neither win nor lose. Sure, over the slow ooze of things, these stocks will ooze up over the years, but why not just buy a good mutual fund?)

“Ayti’ing”—is a winner call, because he gives you PRECISE date to dump out. Ayti (stock symbol) made the main chip of the xBox. Cramer said dump out the day after the xBox introduction—Great gambles when he gives you a date.

“Rhoe’ing” (OccuLogix Inc) is the opposite of “ayti’ing.” Cramer finds a great cheap drug company whose success depends upon a drug passing Phase III Clinical Trials, which is ALMOST assured—but rhoe proved this may not happen. See, these drug gambles are dangerous. You cannot establish when the test results will be announced, so you cannot set up a Trailing Stop to sell if there is bad news which could come at anytime, say while you are toiling in the salt mine. Ergo, beware his small company drug picks based on Phase Three Clinical Trials of a particular drug.

Good luck

pmb1010
03-05-2006, 09:57 AM
thanx for the smile of the day

zyzzyva57
03-05-2006, 10:21 AM
That is why my hobby is "Mad Money"--Get this: I am actually beginning to make a little money, remembering those goodies in my post. Watching for this does really help, but you have to win by losing with a darn "Capstone" to fully enjoy CramerLand. It brings focus like a sharp stick in the eye! :) Peace...

madcowdisease
03-06-2006, 04:06 PM
What's your take on MO? I've held this sucker forever and it isn't doing jack. I remember the last court decision sent it up to $78 and I knew I should have sold and bought back lower, but Cramer kept saying here we go, it goes higher. So then what happens? Kraft reports sh!t numbers and it goes back to my cost basis 5 months ago! I'm not listening to Cramer ever again.

zyzzyva57
03-06-2006, 04:33 PM
I try to say things with humor, but I mean what I say. Essentially, remember what you see with Cramer nightly is a barker to get you in the tent. What you see is the tip of an ice berg. What I have done is subscribe to his "under $10 stocks" newsletter. I will not buy a stock not covered by the newsletter, simply because you can easily be left hanging with one of his picks unless a caller calls about it. I need professional help as a Newbie to understand what the metrics of a stock REALLY mean. I want to be a Trader of nascent companies who could go big time (not sucky companies who have fallen from grace). Depending upon your temperament I would suggest you try a free trial of one his newsletters with the focus of what you like to see if it helps. Going Cramer alone is highly destructive to your pocketbook. Oh, his winners are more than his losers, but before the newsletter, I seemed to pick the dead in the water stocks who just flat lined. Note what I wrote about Capstone. He did this with Google and Sirius. Listening to him totally and you would have lost your profits. Cramer will not discuss Trading Stops to hold your profits. I thoroughly enjoy Cramer, but watch out! He has weaknesses as well as strengths as he tries nightly to fill 45 minutes. DO NOT GO CRAMER ALONE!!

madcowdisease
03-06-2006, 06:25 PM
I try to say things with humor, but I mean what I say. Essentially, remember what you see with Cramer nightly is a barker to get you in the tent. What you see is the tip of an ice berg. What I have done is subscribe to his "under $10 stocks" newsletter. I will not buy a stock not covered by the newsletter, simply because you can easily be left hanging with one of his picks unless a caller calls about it. I need professional help as a Newbie to understand what the metrics of a stock REALLY mean. I want to be a Trader of nascent companies who could go big time (not sucky companies who have fallen from grace). Depending upon your temperament I would suggest you try a free trial of one his newsletters with the focus of what you like to see if it helps. Going Cramer alone is highly destructive to your pocketbook. Oh, his winners are more than his losers, but before the newsletter, I seemed to pick the dead in the water stocks who just flat lined. Note what I wrote about Capstone. He did this with Google and Sirius. Listening to him totally and you would have lost your profits. Cramer will not discuss Trading Stops to hold your profits. I thoroughly enjoy Cramer, but watch out! He has weaknesses as well as strengths as he tries nightly to fill 45 minutes. DO NOT GO CRAMER ALONE!!

I hear ya on Jimmy. I too am interested in incipient companies and rudimentary economies. Do you feel TSUT Newsletter offers this? How long did you say you've had it and what kind of research do they offer? I've seen Cramer's emails and they seem lacking. I'd like for TSUT Team to offer more details and support for why a stock is a good pick.

zyzzyva57
03-06-2006, 06:46 PM
"Jim Cramer's Performance Score Board" - I address this in detail here:
http://www.cramersmadmoney.com/showthread.php?t=2387

sportsmadness80
03-06-2006, 11:13 PM
"Jim Cramer's Performance Score Board" - I address this in detail here:
http://www.cramersmadmoney.com/showthread.php?t=2387

I was a bit confused with whether you liked Cramer and his jargon or whether you dispised his reterick. :lol: But once I get to the end of your posts you seem to favor the guy.

cdharris
03-08-2006, 11:22 AM
I am batting about 50-50 with Cramer over the past year. Some winners were Burlington Northern (BNI), Exxon Mobile (XOM) and BENETTON GROUP (BNG). Losers were Time Warner (TWX), Sepracor (SEPR) and TERADYNE INC (TER). The verdict is still out on several others. Overall, I guess I should not be disappointed. This is a very difficult market and Cramer is probably doing better than average. However, I bought 5 mutual funds (Large Cap, Mid Cap, Small Cap, international, and an index) in October and they are all up 10 - 15%. I think I will continue to invest in diversified mutual funds and just watch Cramer for entertainment.

optimus25
03-08-2006, 11:28 AM
Good timing on buying those funds in October. I too made some moolah buying stocks in October and allowing the gains to ride.

madcowdisease
03-08-2006, 06:27 PM
Good timing on buying those funds in October. I too made some moolah buying stocks in October and allowing the gains to ride.

Yea, October was the month to buy. I was up huge in September, thanks partially to to funds marking up my holdings. Then we had that catastrophic slide. I had only been in the market since the summer at that point and gave back a lot of my gains. I blame naivity, the whole rookie year is a learning experience, but I've made it back. I'll be sure to look out for October this year.