With Independence Day looming next week the guys inquired as to what we can expect next week in the web extra. Since 2004 Intuitive Surgical, Inc. (ISRG) and Meridian Bioscience, Inc. (VIVO) have moved to a nearly 7% gain on four of the six occasions. Watch the video to find out what to expect here.
Archive for June 2007
Jim Cramer’s Mad Money Rebroadcast How To Get The Most Out Of The Show
Today was a rebroadcast of a show that aired on May 28, 2007. It is republished below and linked here.
Teaching viewers the way to extract the best from each segment was the basis for today’s show on Memorial Day. Jim told us that he is not a “genie in a bottle who can grant instant wealth” but also he is not a “sad clown who sips cheap scotch on his dirty linoleum floor either.” The show is about advice. While he is not a financial dictator he has a wealth of experience and he is not ashamed to say that he is great at picking stocks and understanding the market. Excluding the “Lightning Round” a dozen or so stocks may be recommended during the week but just going out and buying based on the recommendation is not supposed to be done. You can not expect to make money on every trade, he said “any decent money manger knows that you’re going to have some losers.” Running a diversified portfolio is necessary and you will surely see some losses if you run one the right way. First an investor who looks at a stock from Jim they must understand the rationale behind the buy call. A sector is usually talked about when a stock is recommended. When a single bigger stock is focused on, either something about the market in general or the market at a specific time is used to teach the lesson. If a secular stock is called a buy the lesson is to buy the cycle on these stocks. Further when a series on the show is done on specific stocks, the specific stocks are not the takeaway, instead the idea behind the series should be looked at. The point is, it is always more that just a buy this or sell this proposition.
Jim is criticized because of the advice given during the “Lightning Round” segment, with the thought by some that it is not “sound advice.” He feels it is, it just does not get as much respect as the stocks in the rest of the show because he does not spend 5 to 10 minutes on talking about the stock. The substance here mostly comes from views on the sectors, most of the time he will not like a stock because he does not like the sector. If he does like a stock it is also due to the sector or he will recommend a stock that is closer to best of breed. This segment was called a “valuable money making resource” if you “approach it with the thought of analyzing sectors.”
Changing his mind often is to be expected due to the dynamic nature of the market. To rely on just five hours of TV a week to do your investing is a foolish thing to do. People have a certain responsibility to do homework themselves.
Manual video.
Using the show video.
Evaluating lightning round video.
Changing position video.
Segments video.
Fast Money Final Call
Ratigan and Najarian give us “Fast Money’s Final Call” of the day in this video.
What People Are Saying
- Lisa P. agrees with what analyst are saying about Madienform Brands, Inc. (MFB). Bras are a necessity and women will never go without them even while going without other things. Lee Brodie said she obviously was making reference to the web extra from Thursday, if you missed it click here.
- Two mailers commented about the Michael Moore segment and his movie “Sicko.” One was favorable and one not so much. Brodie talked about how healthcare was a hot issue. The conversation was heated to read it click here and watch it again click here.
Fast Money Recap & Review
Top 3 – Move Over Mickey, Room For Both “Wals” and Bad Fish Trade
The Walt Disney Company (DIS) has lagged this year mostly due to the company’s growth strategy. They have expanded by now having a $7 billion merger with Pixar. The movie “Ratatouille” comes out soon and CNBC’s Julia Boorstin joined the show. Boorstin does not see any single movie justifying a $7 billion investment but the Pixar creativeness is just what DIS needs. Adult tie-ins like “Ratatouille” wine and cheese selling at Costco Wholesale Corporation (COST). Macke believes it will be a bust, but Adami thinks Macke might be surprised. Bolling thinks DIS is an own at $30 not here. Najarian is a fan of Time-Warner Inc. (TWX) more.
Top three #1 video.
Strong pharmacy sales growth had Rite Aid Corporation (RAD) surprising the Street with a profitable first quarter. They asked if RAD and Walgreens Company (WAG) can survive with Wal-Mart (WMT) in the mix. Adami likes RAD because of the Eckerd deal that will save them $150 million a year and national exposure. Macke came in liking the stock as well. For an under-$10 stock Bolling thinks it not bad.
Top three #2 video.
Products from China recently have been tainted and now the FDA issued an alert concerning tainted seafood such as shrimp and catfish. Bolling told us because they closed food processors voluntarily in China he thinks they will not ignore the problem. If any deaths happen Democrats may jump in and advocate trade protectionism with Macke agreeing. Najarian told us not to trust consumption products from China but Baidu.com, Inc. (BIDU) is worth a look.
Top three #3 video.
Word On The Street
Today’s headlines analyzed by the shows cast. Part one here. Part two linked here.
Face2Face
Viewers questions answered by the panel linked here.
Michael Moore
Whatever your idea of Micheal Moore his documentaries get attention. Today he came to Wall Street to encourage investors to dump their health insurance stocks. Macke pointed out that Moore is asking investors to decide based on social concerns rather than profit motives and he called this ridiculous. The conversation got fierce over the visit to Wall Street. Macke recommended buying health insurers on any dip.
Moore video.
Gerber Scientific, Inc. (GRB) Chief Executive Marc Giles joined the guys for a conversation. The company’s earnings have jumped 41% because of growth. His interview is linked here.
Final Trade
Ford Motor Company (F) was Macke’s pick due to skepticism on the stock. The touch screen maker Immersion Corporation (IMMR) was the choice from Najarian. Adami recommended Dell Inc. (DELL). Last Bolling called Chevron Corporation (CVX) a buy.
Final video.
Fast Money Web Extra
An analyst is recommending Maidenform Brands, Inc. (MFB) due to “inelasticity” and the extra is about that stock and how to play Dillard’s, Inc. (DDS). The exclusive is liked here.
Rebroadcast Of Staying In The Game
Today was a rebroadcast of a show that aired on December 29, 2006. It is linked here or reposted below.
Watching from the sidelines will not make you a great investor. Being willing to get in the game and stay in it is the only way to become that investor. It can be hard to keep your head in the game, but there are three “forces” Jim stated that keep people out of stocks, they were: “boredom, bummers and brokers.” Boredom was called a big problem. A recipe for disaster is when the market players are not interested in the stocks they own, and when attention is not being payed unexpected losses will come. If people invest and stay interested they can make a fortune. Speculation was called a cure for boredom as it makes them feel like they are good investors when successful. Speculation can be considered “foolhardy and more immoral than gambling” but Jim has made some of his biggest gains speculating and he called it “good for investors.” He told us that it is “OK and necessary to speculate.” When talking diversification, Jim is referring to it across sectors, and unless you own some high risk stocks you are not really diversified. A few ground rules of speculating were laid out. The first was “never invest retirement money in speculation.” Second “do not ever have more than 20% of non retirement portfolio in speculative stocks.” A tiny bit of money should be put in speculative stocks, “make 1% to 2% of the portfolio if you are that conservative” he said. Speculation is small cap stocks with a market cap of between $250 million to $2 billion. These are usually less expensive per share, selling from $2 to $10 per share. A catalyst should be lurking and often speculative stocks are unprofitable. You should never buy a stock with no revenue or sales, but a stock with accelerated revenue growth. Two ways to go about speculating is to either pick an individual stock with which to speculate or they can speculate on a sector trend buy putting together a basket of stocks. With the whole industry, people should not miss out by buying the one stock from that group that gets left behind. Cast a wide net and spread the risk around. An industry that has been knocked around and beaten up should be sought. Speculating means always trading too. These small stocks will generally move up or down a great deal. You should have an exit strategy too as to not endanger all of your gains. A good investor should be “excited, interested and careful” Jim says. Worse than boredom is losing a lot of money. If Jim were to quit every time he lost money he would have never gotten anywhere. A magic formula against losing money he does not have, but giving up is not the answer. Two rules for damage control were: expect corrections and do not fear them. The S&P was used as an example as a correction when it had a decent run and then fell in May through June of last year. After bottoming the first half of June it came roaring back all the way through December. People who lost money would have been tempted to give up on stocks due to where the market had climbed and giving up would have been a bad idea. Investors need to understand that sometimes stocks go down and keep going down. They need to be psychologically prepared for big corrections like the one that started in May so they’ll develop a “superior attitude” and stay in the game, he said. The next rule is about preventing losses, Cramer continued. One of the best ways to try to avoid losses is to “watch out for multiple contraction,” which means that the market will start paying a lot less for the same amount of earnings, he said. If players see a “marketwide nosedive” or a “big, ugly downturn,” especially one that’s caused by interest rate hikes, they should identify and sell their high-multiple stocks, as they are the only certain types of stocks that are “truly vulnerable” to multiple contraction, Cramer said. As severe multiple contractions usually won’t occur a stock until the company reports earnings, people should sell their high-multiple stocks before the companies report, unless they want “a world of pain,” he advised. Lastly, Cramer urged his viewers to place limit orders instead of market orders. “Limit orders keep you in the driver’s seat, they keep you from being totally ripped off, and they’re really easy to execute, he said. “Please, if you listen to nothing else I say, use limit orders instead of market orders.”
Fast Money Recap & Review
Top 3 – Out Of Apple’s Shadow, The Black Box Buyout and Bearish Pattern Forming?
The iPhone hits stores on Friday and Thursday Apple Inc. (AAPL), Research In Motion Limited (RIMM) and Palm, Inc. (PALM) release earnings. CNBC’s Mary Thompson joined the show. She talked about the hype getting people into the malls to drive sales ultimately. Neither company will try to steal APPL’s thunder on this one either. Bolling talked about the benefit of APPL getting consumers to spend more and he thinks AT&T Inc. (T) really benefiting. Adami talked about a possible disappointment for RIMM and a buying opportunity if shares sell-off. The panel told us to stay away from PALM.
Top three #1 video.
The “black box” computerized trading programs are becoming increasingly popular. Citigroup Inc. (C) is in talks to purchase the trading desk for $700 million. Najarian told us that 30% of investors are trading with the “black box.” Macke sees the floor of the NYSE Euronext (NYX) as a ghost town in 2 years.
Top three #2 video.
With the market on a big run some wonder if we are double at the top. Bolling told us the current double top is a sucker’s top. Technically it is a double top but there is only 5 days of separation between the peaks. Bolling pointed out some short term negatives but long term he is bullish. Macke told us to get long stocks when the S&P gets down to 1490, if it breaks get out though.
Top three #3 video.
Word On The Street
Today’s headlines analyzed by the shows cast. Part one here. Part two linked here.
Face2Face
Top designer Karim Rashid joined the show to talk about the new iPhone. It is linked here.
Burrito Bull Market
Chipotle Chief Executive Jack Hartung joined the show. Prices for avocado, beef and cheese are all surging. Hartung is not worried about the prices as the are probably cyclical and they have pricing power that most restaurants do not have. The limited amount of items on their menu, smaller buildings and lower labor costs keep them in a good spot. All the panel agree the stock is a buy.
Burrito video.
Trade Update
Guitar Center, Inc. (GTRC) was talked about a little while back on Face2Face with the the guitarist from the band “Cheap Trick.” Macke recommended at the time to get long the stock. The company was bought out today and the stock was up 20% today and Macke still likes the company.
Update video.
Final Trade
Macke picked PetSmart, Inc. (PETM) and Guitar Center, Inc. (GTRC) as his stocks. Dendreon Corporation (DNDN) were recommended by Najarian. Adami told us to buy Research In Motion Limited (RIMM) and if it were to trade down after earnings buy more. Last USEC Inc. (USU) was Bollings choice as a uranium play.
Fast Money Web Extra
The web extra today focused on Playboy Enterprises, Inc. (PLA) and World Wrestling Entertainment, Inc. (WWE) among others. Watch the extra on this link.
