after hours on Cramers's stocks

[useful]

I would like to write about my observation of this show for past 3 months. The show airs on CNBC at 5.00 PM CST. We are told that it is live show for general audience at this time. I have been watching this show faithfully for past 3 months.
I have noticed the following issues:
1) Jim recommends 2 or more stocks at the start of the show (in first 15 minutes) with his research of the day. As soon as he reveals the name of the stock, I immediately put in to my watch list that is displayed as streaming live quotes, including after hours.
2) I am able to see the price of that stock at the time of regular closing of the market on the same day at 3.00PM CST. As soon as the stock has been reveled by Jim, it has been already up by 10-25% in price from the time of closing at 3.00PM. This is fact for 90% of the stocks that Jim has talked on live Mad Money TV how between 5-5.15PM CST.
3) Within about 1-5 minutes after Jim has reveled the name of the stock, the price starts to slide at the most about 1-2 %.
4) Next day the same stocks also show some down side during the early hours after the market opens at the regular time (8.30 AM CST)

MY QUESTIONS ARE:
1) Why do the stocks that Jim reveals are already up by 10-25% from the regular closing time of the market?
2) Is there a private audience (live or paid) at the time of recording of the show who may be buying those stocks immediately in after hours? This is the only way the stocks can go up in the after hours before Jim mentions it on the show to general audience at 5:00 PM CST.
3) I am not talking about live audience such that at a special show like at Howard recently etc.
3) Is it possible that the people who may have knowledge of the stocks that Jim is going to talk about in his show that airs to general public at 5:00 P.M CST, have bought it between 3:00PM CST and 5:00P.M CST and now selling it for quick profit while the general public like me are buying it at Jim’s recommendation at the opening of his show?

Examples:
2/28/06 Jim talked about NSTK closed at $20.98 (-0.71) at the closing and was at $22.13 as he revealed it at 5.05pm cst on live show
Jim talked about NUVO closed at $17.59 (-1.12) at the closing and was at $18.33 as he revealed it at 5.09 pm cst
Jim talked about CATG closed at $13.80 (+0.23) and was at $14.89 as he started revealing it?
Jim Talked about 2 stocks on 2/27/06
SHW It was closed at $42.59 (+1.30) at 3pm CST and the show aired live at 5pm cst and at 5.02pm cst the stock was already trading at $44.21.Can someone explain me what happened between 3pm-5.02pm cst?
WGII It closed at $58.29 (-0.24) at 3pm cst, and was trading at $60.19 at 5.17pm cst when Jim revealed it live on the show. Explain me ,please, How do I invest in it
Jim talked about 2 stocks on 2/10/2006
IFS It was closed at $17 (00.02) at the regular closing time of the market and as soon as Jim revealed it on the show at 5.14PM CST the stock
Is already trading up at $18.44 in after hours.
Jim talked about 2 stocks on 2/9/06
PTIE It was closed at $9.10 (+ 0.09) at the closing and at 5.04PM CST as soon as Jim revealed it, it had been already trading at $10.30
PSA It was closed at $73.92 at the closing and at 5.14PM CST as Jim mentioned, it was trading at $75
Jim talked about 4 stocks today 2/8/06:
EDO It was closed at $25.85 ( -1.65) at the closing of the market. At 5:04PM CST Jim revealed the stock on his show and it was already at $27.19
AXYS It was closed at $16.12 (-0.12) at the closing of the market. At 5:06 PM CST Jim revealed it on his show and was up to $17.85 at that time.
VTSS. It was closed at $2.87 (+ 0.19) at the closing of the market. At 5:16 P.M CST Jim reveled the stock on the show and was already up to $3.48
I thought to ask you this because there must be a legitimate explanation. I have considered Jim as my guru of stock market and I hope he or someone from the staff attains to my request and answers me.
Thank you.

[useful]

dear friends
please read and luv to see any response

[soundlanguage]

Good eye noticing that pattern, given the examples it's doubtful all the examples are anomalies so this has piqued my interest ...

Would also love to see a few in depth responses.


*bump*

[bobwatford123]

No need for an a too in depth response. People who are connected with the show in some way trade on information of what stocks he features. Then they dump after hours to the lemmings. I believe it is illegal and at some point will likely be stopped (some major show changes or putting Cramer right off the air). Cramer needs to address this obvious scam before they shut him down. Oh I wish I was a Cramer cue card boy!!!!!!!!!!!

[bobwatford123]

BTW useful, awesome tracking of the trading patterns. Thanks!!!

[liroff]

To my knowledge, the only people who know which stocks will be featured on Cramer's show on any given day are Cramer, his staff, and the people who call into the show. When you apply to be on the show, the staff makes you agree that you will neither trade on the stocks to be mentioned prior to the show's airing, nor will you advise anyone else about which stocks the show will be airing. Whether the show's call-in guests actually follow this rule, who knows? However, it would be securities fraud if they did not.

Moreover, I am 100% confident that Jim Cramer would never profit illegally off of Mad Money, no matter what paranoid conspiracy theorists claim on the internet discussion forums. By all accounts Jim is an honest man and a true populist, with more than enough money for himself and his family. The guy manages a multimillion-dollar portfolio for charity, for heaven’s sake! Well-educated at Harvard Law, Cramer knows the penalties of living on the wrong side of the law, and it is unlikely he would risk his comfortable position in life, with his profitable internet business and TV, radio, and book deals, to make a couple easy, illegal bucks.

So, I doubt it is common that Cramer or show participants are acting on insider knowledge with regard to Mad Money. I think there are more likely explanations for the behavior of stock prices prior to their mention on Mad Money. One that probably accounts for most of the behavior you observed is as follows:

Cramer frequently hints, either overtly or covertly, to which stocks he will mention. Oftentimes, his 3:30 PM Stop Trading segment, which airs during CNBC's Closing Bell, foreshadows the stocks and themes to be featured on that evening's episode of Mad Money. Otherwise, commercials that air prior to the show frequently give away hints about the content of the episode. Careful traders can act on these hints and occasionally hit a homerun.

For example, recently Cramer focused a discussion segment on Rediff (REDF), an Indian internet stock. Prior to the start of the show, CNBC aired a Mad Money commercial which mentioned Cramer would announce a "big Indian internet play." Upon seeing the commercial, I went out and purchased shares of Sify (SIFY), another Indian internet portal. Note that I was not alone: as I was bidding on the stock, many new people came into the market looking to buy. This was BEFORE Mad Money even began! As it turns out, I was wrong on SIFY--REDF was the stock Cramer liked--but it did not matter in the end: Cramer's hype for REDF buoyed up SIFY's stock price (a rising tide lifts all ships) and SIFY shot up 10% the next day.

Observing the commercials and Stop Trading! segments and then betting on which stock Cramer might recommend is something I frequently do, and have had moderate success doing. And each time I did it, both when I was wrong and when I was right, there were many other bidders on the same stocks, chasing up the prices. So, I am pretty confident that the price behavior you have been observing is due in large part to these foresighted traders betting in advance which stocks Cramer might talk up.

Best,

Alexander Liroff
iBeatTheStreet.com (http://www.iBeatTheStreet.com)

[bobwatford123]

Nope, illegal insider trading for sure...not by Cramer, by his staff.....or their relatives etc.

[optimus25]

Nope, illegal insider trading for sure...not by Cramer, by his staff.....or their relatives etc.

Please see link regarding Insider Trading:

http://www.sec.gov/answers/insider.htm

People trading before Cramer announces stocks is not insider trading, just needed to clarify that. People are always looking to make a quick easy buck in the market. Don't ever buy into momentum just because someone recommends a stock. Your risk increase exponentially if you try to trade when everyone else is buying and bidding up the stock. With that said, I don't doubt that his researchers probably leak the information out to family and friends...who knows. Read the Business Week article on Cramer, it will give you an insight on how his show works and who does most of the research for him.

If you ever subscribe to any newsletter stocks you'll notice that this is similar to what Cramer is doing except Cramer does it on Television increasing exposure to a stock to a bigger audience.

[useful]

My Observation, Today, on March 20 Jim revealed the stock MSPD at 5.15 PM CST, the stock closed at $3.30 (-0.25) at 3.00 PM CST and as soon it was revealed by Jim at exactly 5.15 PM CST it was at $4.26 and then started sliding (sell off) all the way to $3.99.
I would like to thank all the readers of my posts. I also luv Jim Cramer as I have said he is my Guru and like his show Mad Money (except when he chews on those bulls /bears and spits off… filthy) I am here not accusing anybody either Jim, his staff, crew, cue card holder or eves dropper on his notes. But this is facts and facts about the after hour trading on the Jim Cramer’s recommended stocks. Few responders mentioned that he talks about the stocks on “Stop Trading” on CNBC , O.K, here is my observation today, 3/20/2006. This usually comes at 3.30PM EST, and today (3/20) Dilan at CNBC brought him at 3.40 PM EST and immediately Jim mentioned 2 stocks PORK AND SFD , please look at the charts and see, at 3.30PM EST before it was revealed and and at 3.40PM EST (sell) when it was reveled after Dilan questioned him on live CNBC.I don’t want be biased or paranoid. As mentioned here, I am still looking for a legitimate answer. Just to let the readers know that I subscribed his Action Alert in January 2006 and I kept receiving the e-mails, mostly before market closes, about what stocks he is going to sell or buy.,but no mention about what he would say on Mad Money. I faithfully listened to his Real Money Radio that is in Real Audio format and can be listened two times and never he revealed any stocks that he revealed on Mad Money. I unsubscribed after one month. I just think it is not coincidental.
Thank you for reading.
Good luck with THI

[mhertz]

useful -- good points...and also remember that Dylan Ratigan and CNBC are given his picks before he says them live on air -- so workers who do read his picks before he says them are in a first-mover advantage.