Martin writes, “When the 3G iPhone comes out. Is that when it is announced on June 9 or when it actually hits the market? I realize this is one of those buy on the rumor and sell on the news plays, but how is that actually done? Do we sell the day of, day after or before?” Cramer told the viewer to scale out of Apple by selling 25% of his position the day before the announcement, 25% the morning of the announcement and then 25% that afternoon. He would hold the remaining 25% to see what happens. Ryan writes, “In the speculative plays show you mentioned something called “multiple contraction.” All day last Thursday I was down in the dumps, sipping my cheap scotch when I saw the beating that GameStop’s (GME) stock took after reporting an astronomical quarter. But then I came home and was properly educated by the professor. I maintained discipline and bought while it was low, knowing that the company was not broken, just the stock temporarily. You sir, are keeping me in the game and for that I salute you and your staff including props!” Cramer explained that GME dropped soo sharply because the management wasn’t bullish enough on the conference call.
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