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I like Jim Cramer. I didn't always, but...

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September 25, 2009 – Comments (19)

This blog is about why I like Jim Cramer.  It may be a good idea to begin such a blog by observing alot of the criticisms that are frequently aimed at Cramer. 

-hes a momentum guy

-he's a shill for hedge funds, working to screw over his viewers by helping hedgies pump and dump

-he's a criminal

-he flops too much

-he is a mean, bad man

-etc.

I realize that TV is TV and one should never assume that what one sees on TV is real.  But he claims that the "lightning round" is never rehearsed.  Kass has claimed the same thing on RealMoney Silver.  And lets face it, his knowledge of stocks is absolutely epic if that is true.  If the lightning round is not staged, and he has comments on 98% of the stocks people ask about which is absolutely amazing.  If thats real, that alone is evidence that he is clearly wildly intelligent.  I know some wildly intelligent people that are into stocks and I'm reasonably smart, and I can't even remembereverything htats in my own portfolio...  But, then, I can't remember to not lock myself out of my house or where I parked or when my girlfriends birthdays are or how old I am, so thats not a very good comparison.  Its true, I frequently mis-quote my own age by +/- 1 year.  Ex girlfriends always know and correct me when I'm wrong, which is annoying when I mis-quote to the downside and happy when I accidentally told someone I'm older than I actually am.  lol

And his columsn on RealMoney Silver ...  folks, IMHO, Cramer is a momentum guy.  Not htat there isn't any thought or experience to the momentum, but he is a momentum guy IMO.  But some of his articles are very good, very well thought out.

And while Cramer rarely gets credit the way that, say, Doug Kass gets credit for calling the March bottom, Cramer has made a variety of extremely good calls on broad macro type things.  That C and AIG were big systemic risks (i saw that in a youtube video), his much-ballyhood "they know nothing" rant which was recently rec'd by no less than Tim Geitner, his call that housing would drop up to 40% (house prices), his call of the housing bottom (assuming it holds, he called +/- 1 month long ahead of the apparent bottom) and so forth.

And he had a fairly remarkable performance record as a hedge fund manager.  I think i've seen 28% for 10 or so years somewhere.  

Now, mind, I don't ever buy or rsell based on Mad Money.  He has thumbs-downed far, far, far, more stocks that I was holding or buying that he's thumbs-upped.  DOW, MTW, LVS, MGM and more come to mind.  But thats a style difference, he likes momentum and I like catching falling knives. 

Porte, Awall, if you read this, I added some ATPG options today though not many (its a falling knife the last couple days, I like that alot better).  If it hits 10 i'll back up a truck.  I refuse to do any due dilligence on it, its all on you guys.  :)

But enough ATPG chatter, I've come to enjoy cramers commentary and respect that while his perspective and style is greatly different than mine, he is, in my opinion, clearly a very smart guy very able to offer some interesting commentary.   

19 Comments – Post Your Own

#1) On September 25, 2009 at 12:14 AM, ozzfan1317 (78.95) wrote:

I like his show but I still do my own HW and rarely use the stock Ideas. I do agree with him on KO and BP.

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#2) On September 25, 2009 at 12:55 AM, QwertyHero (< 20) wrote:

We must have the same piece missing from our brains.   My girlfriend thinks it hilarious that I can never remember how old I am.  She's been telling me how old I am for 8 years and she still laughs everytime I get it wrong.

And for the record - I like Cramer.  I dislike people that hate Cramer.  Dislike him?  Fine.  Hate?  Come on now. 

 

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#3) On September 25, 2009 at 3:14 AM, awallejr (81.59) wrote:

As for ATPG, it is not hitting 10.  Not enough float for that kind of downward pressure.  And if it did I would load up the truck. I don't know what options you are playing so I can't comment accordingly.  Personally I would prefer holding the stock since there is no time pressure.  I did say it was reaching profit taking territory.  Now if it drops it is reaching re-accumulating territory.

As for Cramer, his show is just unwatchable for me. I do have a good memory and he does piss me off too much when he literally flip flops just to make it sound like he is always right.  Jon Stewart so owned him.  Is he evil?  No. Does he violate his own rules?  All the time.  No way he is putting in 1 hour research per week per call.  Is he knowledgeable?  Absolutely.

I remember one recent video of him saying if people had bought and held Merck decades ago they'd be retired rich today.  That was a pure "buy and hold" comment. Then when the market tanked he railed on how "buy and hold" was no good, yet if people did hold they would have recouped much of their losses from the bottom.

He churns, as a hedge fund manager does.  But as an investment advisor?  Stay away.  Maybe grasp some ideas but leave it at that.

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#4) On September 25, 2009 at 3:21 AM, ozzfan1317 (78.95) wrote:

I agree his show entertains me and Occasionally I get ideas from it however don't buy something just because he reccomends it.

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#5) On September 25, 2009 at 5:43 AM, PdoBear (< 20) wrote:

Cramer rules. Be sure to get in on the "Mobile Internet Tsunami" that  he mentioned on Wednesday. Strangely enough, he recommended buying RIMM on a dip. RIMM dipped 9% the day after his show. Get in there Cramericans!

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#6) On September 25, 2009 at 6:30 AM, Chromantix (97.84) wrote:

I listen to his show daily on the way to work (d/l the podcast and listen - never watch TV whilst driving, AND HANG UP, STUPID!).

Anyway, I like listening to the show because he gives me perspectives which I don't get on the Fool or other investment sites/shows.  Is it valuable?  Absolutely, but in a way I'm not quite able to quantify. I enjoy hearing his oppinion, then countering (or agreeing) with my own.

I don't think I've ever taken his advice for my portfolio, but I have watched some of it unfold in CAPS. Sometimes I'm correct, sometimes I'm not.  Hey, it's a fickle market...

 

Now that I think of it, my post contributes nothing... Sorry.

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#7) On September 25, 2009 at 11:48 AM, checklist34 (99.71) wrote:

qwerty, this is the greatest feedback i have ever gotten on an internet message board!  I feel way better now, I'd always thought I was the only person that could routinely forget his/her own age.  That is awesome!

I was once on a second date and couldn't remember the girls name.  I finally just said "listen i'm basically missing the part of my brain that remembers things, and I can't remember your name.  I do remember that you like PJ tho so I burned a copy of their live show".  lol.  she got over it.  

i agree.  dislike?  fine.  hate?  come on, really?

:)

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#8) On September 25, 2009 at 11:51 AM, checklist34 (99.71) wrote:

chromantix, i thought yoru post was pretty good.  I need to get an ipod, i'm so behind the times. 

pdo, I also was impressed that Cramer recommended RIMM on a dip.

 

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#9) On September 25, 2009 at 11:59 AM, JohnnyAngel33 (< 20) wrote:

I never cared one way or the other for Cramer until a few months back.  I lost all respect whatsoever for him when he criticized the Obama regime's handling of the economy and then turned around and kissed Obama's butt as soon as he got crap for it.

He needs to get some cajones.

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#10) On September 25, 2009 at 12:00 PM, checklist34 (99.71) wrote:

awall, you may well be right about ATPG not getting to 10.  it may have permanently reset higher after some changes for the better (discovery, maybe they raised money or something).

but so far this year the retracement in the market has been modest (never a 10% retracement since the march bottoms) but the retracement in individual stocks is amazing.  MGM went from 1.80 to 13 back to 5 now to 13 again.  LVS from 1 to 12 to 8 to 10 to 7 to 19.  USG from 4 to 17 to 8 to 20 and probably back well below 20 eventually.  XL from 2 to 11 to 8 to 18, probably have another significant retracement.  CNO from 20 cents to 3 bucks to 1.50 to 6.

the list is endless.  there is enormous rotation and churning in the marmket and almost all of my positions have experienced vast retracements at some point.  

its paid to be patient as a buyer in this market so far, even with the tremendous upward ramp.  Its always paid, except for the early ramp in march through april options day, to be patient and wait for a better price, to catch a falling knife rather than chasing a shooting star.

 

Awall, the first time I saw mad money I almost barfed, and I don't debate your complaints.  I just admire what must be a remarkable mind for the reasons I listed above and have come to appreciate Cramer because, basically, I've come to conclude that he's very smart.

Those hedgies and their short term panics are amazing to watch.  Just amazing.  Kass changes his mind weekly, sometimes interday on whether to be long or short or long or short or long this no short this, sell that.  I get dizzy reading it all.

I'm sticking to my fair value approach.  Which i'm going to blog about one of these days. 

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#11) On September 25, 2009 at 12:07 PM, portefeuille9 (95.33) wrote:

 

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#12) On September 25, 2009 at 12:10 PM, portefeuille9 (95.33) wrote:

I remember one recent video of him saying if people had bought and held Merck decades ago they'd be retired rich today.

That is the video by the way.

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#13) On September 25, 2009 at 12:13 PM, portefeuille9 (95.33) wrote:

Porte, Awall, if you read this, I added some ATPG options today though not many (its a falling knife the last couple days, I like that alot better).  If it hits 10 i'll back up a truck.  I refuse to do any due dilligence on it, its all on you guys.  :)

okay.

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#14) On September 26, 2009 at 1:49 PM, checklist34 (99.71) wrote:

i saw that video, the whole series actually, when somebody posted it here a while back.

that series is a must-watch, its just awesome...

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#15) On September 26, 2009 at 2:25 PM, portefeuille (99.60) wrote:

... , when somebody posted it here a while back.

That was also me. I should have written down the number of views it had on youtube when I first posted it ...

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#16) On September 26, 2009 at 2:55 PM, checklist34 (99.71) wrote:

lol

 

folks, anotehr thing I like about cramer:  i wonder, just woner, if we will all wind up driving nat gas power vehicles, and if he will ultimately have been an influence on this?  

now that'd be somethign

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#17) On September 26, 2009 at 2:58 PM, Seano67 (31.29) wrote:

folks, anotehr thing I like about cramer:  i wonder, just woner, if we will all wind up driving nat gas power vehicles, and if he will ultimately have been an influence on this? 

 

CLNE and WPRT, baybee. :)

But I still think Cramer's about a toolio. 

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#18) On September 28, 2009 at 11:34 AM, checklist34 (99.71) wrote:

hey sean, i'll check those out.

I made my first buy partially inspired by Cramer.  I got long my only tech except a tiny position in HIMX by selling long-dated just below the money puts on RIMM and buying long-dated deep in the money calls.  On that trade I will be a winner if RIMM stays above 60 between now and Jan 2011 and as nowhere near $67/share is invested i'll be double my money if it reaches the 80s.

I plan to add to it if it tanks further.  

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#19) On September 30, 2009 at 1:31 AM, Tastylunch (29.41) wrote:

Re: Cramer

 I'm not sure he means well or not. I think he does in his own way.

I do think he's pretty irresponsible though, he's not honest about his mistakes (which we all make but he doesn't up to as much he needs to given his job) and he teaches his viewers some very bad habits (e.g. high emotion, flippant decisions etc).

If he advertised "mad MoneY" as a trading show as opposed to an investing show it would solve any issue I have with the man,

Once I found out he was bipolar I felt better about him. I alos think he explains his behavior pretty well too.

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