The Winners of the New World
By Jim Cramer 02/29/00 at the Jacob Javits Center in New York City.
You want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? 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 (SVNX), Ariba (ARBA_), Digital Island (ISLD), Exodus (EXDS), InfoSpace.com (INSP_), Inktomi (INKT), Mercury Interactive (MERQ), Sonera (SNRA), VeriSign (VRSN_) and Veritas Software (VRTS_).
Most of these picks went bankrupt or were purchased for pennies, in the aftermath of the dotbomb mania.
It was a FAIL of epic proportions which led to a career in television. He shares valuable information with the public...but his individual stockpicks are the stuff of nightmares.
It always amazes me when people try to analyze Cramer's picks by selecting the point where Cramer touts the stock and some future point (usually the timing of the article) where they decide that is the result of the stock pick. Nothing could be further from the truth. Many picks become pans: after a bad quarter, a turn in the market, a sector rotation, ad infinitum. I subscribe to Cramer's Action Alerts and have had a massive education watching Cramer manage that portfolio. If you follow Mad Money regularly, you understand that the most important aspect of Cramer's advice is how to manage a portfolio of stocks--not in picking individual stocks. You can get stock suggestions all over the place--handling them once purchased is the magic. Cramer doesn't buy a stock in the Action Alerts portfolio and just hang on to it. (Nor does he recommend that.) Those shares are sold a bit here and bought a bit back there and exchanged temporarily or semi-permanently or altogether for a different stock that will move sooner or higher or faster...etc. If a monkey picked the stocks and Cramer managed the portfolio--Cramer would make money. He does his best to pass on some of that expertise to the rest of us.
Bear Stearns accounts WERE SAFE. That is what Cramer was telling people, and that is what happened. No one with an account at Bear Stearns lost his or her money. The account was simply transferred. Stop lying about what Cramer said. He was very clear that people's accounts were safe--he did NOT say that buying or holding Bear Stearns' stock shares was safe. As we all know, Cramer was right. Bear Stearns' stock was a disaster. Individual accounts at Bear Stearns were safe. Today--after watching what Corzine (the former Democratic Governor) did with clients' money at MF Global, I doubt Cramer would say that clients' accounts were safe in a similar situation. But Corzine is a criminal case. You can never be safe from outright fraud and theft.
cramer is good for one thing, entertainment, but dangerous for those that follow his picks blindly... for they will be broke in short order unless they follow his picks as mentioned above... on the short side.
must admit, i do watch on occasion when a ceo of interest is on or just to watch the ticker bar at bottom for unusual a/h action.
cramer is dangerous for those that don't know better
I don't remember him saying "sell" but did say he preferred Kinder Morgan. The writer Chris Lau, from seeking alpha, obviously has a bias against BBEP from his most recent and other articles he wrote.
Barron's did an analysis of Cramer picks and found that you would make more money shorting them. Cramer himself has stated that only his in depth segments should be used afeter the Barron's article. You can tell his staff did not listen to the BBEP conf. call. Hw gave us nothing new.
I did my own analysis 18 months ago. Kramer was wrong about 70% of the time over the long run.I stopped listening to CNBC a long time ago. They had one of their so called analysts comparing Coca Cola and Pepsi. This was when Pepsi also owned Pizza Hut, KFC, Taco Bell and Frito Lay. You can't compare the two as a strictly beverage company.