All the people that call into his show thanking him for making them "Mad Money" must know when he's right and when he's just full of crap because everytime I've listened to him, I've gotten burned.
I've kept MO because the Goldman Sachs price target ($27 currently) keeps moving up, the dividend keeps going up and I seriously can't find a lower price risk (beta is 0.45) 5%+ yielder out there. Ditto for PM ($74 price target currently) but the 3.5% yield is getting a little light.
"most of what he recommends on tv isn't what he holds in his trust."
This is true. One reason is that Cramer has so many restrictions on trading for the Trust that, for example, he can never buy Apple because he is always talking about it or being asked about it. He has a tiny tiny position in Apple, despite being so enamoured of the stock and the company.
He did have MO at one time, but sold it. Cramer has to worry more about headline risk than a small investor does because of the reputation of his show. He now prefers PM because of U.S. political risk to MO.
KMP has been a big gainer for me, I kept averaging in when it was going down so I ended up wiht alot of low 60 buys .... it's great getting up on a high div stock so you are up on the stock and just collect the div.
I've just updated my MLP spreadsheet and corrected two errors that now show EEP and EEQ yields approaching 7%, ETP yield 7.59%, EPD yield 6.06%, SPH 6.62%, KMP yield 6.4%. Many of these had mid 5% yields which was too low in my opinion and were trading above their Goldman Sachs price targets. I always have a hard time making money on an MLP buying it above the Goldman target price.
KMP is the Blue Chip in the group but it is still over its Goldman Sachs price target of $69. In the case of KMP, the best I can do is buy it at the Goldman Sachs target price.
I'm looking to buy and will look at distribution growth. I would assume the lowest yielders in this group have the highest growth rates in distributions. Part of NRGY's problem is no growth in distribution until the acquistions start kicking in and the core propane business recovers.
Is not one of the stocks he buys for his AA portfolio. If it was one of his "favs" as you say, then it would be in his charity account. Be aware that many he likes on TV are not ones he buys and sells for AA portfolio.
Does anyone think MSNBC would promote a show with many callers that are critics? Wouldn't that put a crimp on advertising revenues? Duh....its rigged.
But that should be obvious to anyone. Nonetheless, the information the show provides can be valuable. One has to exercise good judgement with any advice, not just Cramer.
Mad Money often takes calls from callers who are down in a stock that Cramer recommended. Cramer often mentions mistakes in stocks, and in fact, apologizes. You don't hear the rabid, screaming investors who gambled big on one stock and lost big time, though. They attack Cramer through emails (which he refers to but doesn't read aloud on Mad Mail) and on Twitter. Obviously, those people don't get through on the call line (assuming they bother to call--and agree to the terms.)
Cramer thought NRGY was OK when it was trading $37-38 after the last meltdown. Rallied to $42. My bad for not getting out, but the 7%+ distribution yield looks sustainable and NRGY should recover $2-3 over the next several weeks.
Agree. I'm sorry I held so many of my MLP's over the dividend/distribution this quarter. On the other hand, I had become underweight by trading, so I only took profits where I was up 40% or better. So the answer is to take profits at the next run-up. Nothing wrong with accumulating 7% plus and being ready for July.
Cramer is an entertainer who is about 40% right. That means that flipping a coin, or just doing the opposite of his recommendation would result in better returns. That said -- he's honest. He tells you to do your own homework and to listen to nobody including himself.
As for NRGY, I think he is right on this one, and I'm a buyer on this weakness. I'm investing long term and looking for high dividends and stable long term industries. NRGY fits the bill perfectly.