Tuesday, April 3, 2007

James J. Cramer: Mad Money, Indeed

People always ask me what I think of Jim Cramer and his show "Mad Money" on CNBC.

The best perspective I can give is a speech, "The Winners of the New World," that he gave on February 29, 2000.

"You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now. OK. Here goes. Write them down -- no handouts here!: 724 Solutions, Ariba, Digital Island, Exodus, InfoSpace.com, Inktomi, Mercury Interactive, Sonera, VeriSign, and Veritas Software."

Cramer goes on to say:

"...you have to throw out all of the matrices and formulas and texts that existed before the Web. You have to throw them away because they can't make money for you anymore, and that is all that matters. We don't use price-to-earnings multiples anymore at Cramer Berkowitz. If we talk about price-to-book, we have already gone astray."

There he is on record, seven years ago, saying that profitable business models and earnings don't matter.

"So, if you can't own the retailers, and you can't own transports, and you can't own banks and brokers and financials and you can't own commodity makers and you can't own the newspapers, and you can't own the machinery stocks, what can you own? A-ha, that just leaves us with tech. That's why we keep coming back to it. That's why, despite the 80% increase in the Nasdaq last year, we are looking at another record year now."

And how did his top 10 stocks perform? Only a few are still in business.

20 comments:

Anonymous said...

I also like how he said in that article that US Steel (price then: 19.28, now 100) and Union Pacific (then: 33.74, now 103.10) were dogs.

Anonymous said...

He also said to sell RTI in July 06 at 44 now 94

Anonymous said...

The irony is he is more popular than ever! How is that possible? The only thing that will change this nonsense is a huge market crash. Will that happen? I honestly don't know. The fact that Jim is still around and strong is stunning.

Genesis said...

People want instant gratification, not hard work.

Listening to Cramer is instant gratification. He does next to zero fundamental analysis himself - he knows he can move momentum just from the listeners, so if you can play INTO him you can make a ton.

But if you are a "true believer" you will eventually get skinned.

Anonymous said...

He's a piece of shit. Another blogger posted a list of other stocks he recently recommended and they were down now too. Short his recos!

IMO there will be a crash soon, for many reasons. Not the least of which is the dying dollar and the hyperinflation the Fed is creating with bailouts.

Anonymous said...

I'd say wait for a listener reaction, *then* short his recommendations.

Aaron Krowne said...

Hear hear!

Cramer is one thing and one thing only: a master of the here and now; a man with his pulse on the zeitgeist.

For example right now Cramer is talking about how safe financials like Goldman and Wells are. Are you sure about that, Jim? Or have they just not imploded yet?

I hear they track his picks over at Motley Fool CAPS and they'll earn you negative return.

Anonymous said...

Man those picks back from 2000 were terrible! How soon people forget. Henry Blodgett is another guy that cashed in on the 2nd act. Banned from the securities industry from pumping dot.bomb stocks that his firm was doing banking for, he is now a respected journalist and fairly entertaining I must say.

Anonymous said...

Just about *everyone* on Wall Street lost tons of money from their 1999/2000 picks when the tech bubble finally burst. There were a handful of people who wisely started shorting tech in early 2000 but does that mean that the other 99% are total idiots?

The point is that's it's easy to sit back and play hindsight stockpicker. As for Cramer's picks, just look at his charitable trust for 2007 and you'll see how he did (he beat the S&P in case you're too lazy to look it up). He's only human though and anyone considering any stock that he recommends should research it thoroughly and come to their own decision.

Anonymous said...

Cramer is a piece of shit- whoever said I wholeheartedly agree. I can't believe this liar has not been called out on the carpet by more people.

Anonymous said...

Jim Cramer is the most dangerous and irresponsible financial influence in the media today. He has no accountability and gives reckless advice severely financially injuring those who are naive enough to believe in his erroneous opinions.

On July 14th episode of Mad Money he said Citi and BAC where headed to "single-digits" and that they should be sold. Since then Citi is up from $14 to $20. This clown needs to be fired and held criminally responsible for his negligence.

Anonymous said...

According to the Penny King, "Jim Cramer" is one of the biggest media stock con men of the 21st century and he should be jailed for securities fraud! Not only is he insane, he is stupid and a moron all in the same body! Don't listen to mad men when an entire nations' ship has already sunk!

Anonymous said...

C and BAC move to single figures.

Anonymous said...

I like James J. Cramer show, I watch it regularly.

Anonymous said...

LOL...I just love it when people who talk out there a-- (he said Citi and BAC were going to single digits) get caught with their "pants down"...watch the damn show before making your comments!! He is Harvard educated and experienced ...what are your credentials?

Anonymous said...
This comment has been removed by a blog administrator.
Bethie said...

big boyyyyya from morocco cramer please inform your guests stocks involving airlines to the world cup in south africa also coca cola is a major player in this games in the summer there is millions of foreign workers returning to there home lands KLM and LAFTHANSA is the best airlines i can think about with sure growth but they must sell before september 26
good luck cramer

Anonymous said...

I would have saved a bunch of money if I'd followed Cramer's advice to sell the banks in 2008. His advice to buy WIN, EGO and several others made me good money in 2009. I compare his recommendations with the research services - S&P etc - and take it all with a grain of salt.

flabanker said...

I have to laugh as I read all these old comments blasting Cramer. The one below (which I cut and pasted for everyone's enjoyment)was one of the most inflammatory and yet proved how absolutely correct Cramer's prediction of single digits for C and B of A turned out to be. That person must really be stewing, and broke. Probably lost all their money and given up on investing so they will not read this comment.

" Anonymous said...

Jim Cramer is the most dangerous and irresponsible financial influence in the media today. He has no accountability and gives reckless advice severely financially injuring those who are naive enough to believe in his erroneous opinions.

On July 14th episode of Mad Money he said Citi and BAC where headed to "single-digits" and that they should be sold. Since then Citi is up from $14 to $20. This clown needs to be fired and held criminally responsible for his negligence. "

For the record C went to at least $2.55 and BAC to $7.00. Just as predicted.

And to Anonymous complaining about X and UNP. X went from $100 to $16.88 and UNP went from $103.10 to $33.62. Yet another great call.

And to Anonymous who thought it would take a market crash to expose Cramer. Well, DJIA 14,000+ down to 6547 or so seems to meet your criteria and Cramer is as popular as ever. I defend him because he has made soooo much money for me personally. Sorry, but it is the truth. And bashing anyone is bad form anyway. I am sure the author would agree he has missed some picks on his shorting business and has no real accountability. Good luck to everyone! :-)

Anonymous said...

Jim Cramer is the most dangerous and irresponsible financial influence in the media today. He has no accountability and gives reckless advice severely financially injuring those who are naive enough to believe in his erroneous opinions.

On July 14th episode of Mad Money he said Citi and BAC where headed to "single-digits" and that they should be sold. Since then Citi is up from $14 to $20. This clown needs to be fired and held criminally responsible for his negligence.

Had to read it again. Ha ha!

flabanker said...

I have to laugh as I read all these old comments blasting Cramer. The one below (which I cut and pasted for everyone's enjoyment)was one of the most inflammatory and yet proved how absolutely correct Cramer's prediction of single digits for C and B of A turned out to be. That person must really be stewing, and broke. Probably lost all their money and given up on investing so they will not read this comment.

" Anonymous said...

Jim Cramer is the most dangerous and irresponsible financial influence in the media today. He has no accountability and gives reckless advice severely financially injuring those who are naive enough to believe in his erroneous opinions.

On July 14th episode of Mad Money he said Citi and BAC where headed to "single-digits" and that they should be sold. Since then Citi is up from $14 to $20. This clown needs to be fired and held criminally responsible for his negligence. "

For the record C went to at least $2.55 and BAC to $7.00. Just as predicted.

And to Anonymous complaining about X and UNP. X went from $100 to $16.88 and UNP went from $103.10 to $33.62. Yet another great call.

And to Anonymous who thought it would take a market crash to expose Cramer. Well, DJIA 14,000+ down to 6547 or so seems to meet your criteria and Cramer is as popular as ever. I defend him because he has made soooo much money for me personally. Sorry, but it is the truth. And bashing anyone is bad form anyway. I am sure the author would agree he has missed some picks on his shorting business and has no real accountability. Good luck to everyone! :-)

Anonymous said...

Jim Cramer is the most dangerous and irresponsible financial influence in the media today. He has no accountability and gives reckless advice severely financially injuring those who are naive enough to believe in his erroneous opinions.

On July 14th episode of Mad Money he said Citi and BAC where headed to "single-digits" and that they should be sold. Since then Citi is up from $14 to $20. This clown needs to be fired and held criminally responsible for his negligence.

Had to read it again. Ha ha!