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Never Forget Jim Cramer's Call on 2/29/2000



September 25, 2010 – Comments (3)

Never forget this former GS POS call. Market Ticker has the post here:

Just remember this call from Cramer on 2/29/2000, about a month before it all blew up:

"OK. Here goes. Write them down -- no handouts here!: 724 Solutions (SVNX), Ariba (ARBA_), Digital Island (ISLD), Exodus (EXDS), (INSP_), Inktomi (INKT), Mercury Interactive (MERQ), Sonera (SNRA), VeriSign (VRSN_) and Veritas Software (VRTS_)."

Let's look:

SVNX: Gone

ARBA: Roughly $1,000/share then, now $18.81 (split-adjusted)

ISLD: Gone

EXDS: Gone

INSP: Hit a split-adjusted high over $1300.  Now $8.25

INKT: Gone

MERQ: Traded at about $100 at the time, now gone.

SNRA: Gone VRSN: Traded $258 at the time, now $31.88

VRTS: Symbol re-issued, no longer around (acquired, but at nowhere near the "buy" price)

Now go back and look at the charts of all those stocks in the list above in the time frame leading to those recommendations. 

Pay particular attention to the price action upward and when they were recommended, along with what happened to you if you listened to such a recommendation and actually bought the stock.

For all intents and purposes if you bought the above list as your retirement portfolio you lost all of your money.

Folks, this pattern is so ridiculous and outrageous that I'm stunned it continues to work - at all.  But it does.  Whether it's Apple, Netflix, Priceline, Salesforce or dozens of others, every time we come out of a recession or even a mid-cycle slowdown these recommendations are always made after the ramp has already happened and those who bought the stock way, way down there need someone to unload to.

That someone will be you, if you listen to these recommendations.

3 Comments – Post Your Own

#1) On September 25, 2010 at 3:23 PM, Varchild2008 (84.37) wrote:

None of those companies in that list are anything most Americans have ever heard about especially back in 2/29/2000.

I try to stick with companies that will not go away cause they have been around for decades and decades and are doing extremely well in this recession.  I also like Dividend payers and I do not know if any in that list paid dividends.

Stick with what works... Not with someone's list of stocks that contain nothing you know about.

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#2) On September 25, 2010 at 3:32 PM, starbucks4ever (85.99) wrote:

Gold, anyone? :)

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#3) On September 25, 2010 at 6:39 PM, DarkReaper (< 20) wrote:

Theres a reason why hes on TV, read his book hes a failed manager of a hedge fund, need you know anymore.


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