Like many newbies; I wanted to learn and started watching Cramer. He said buy Deere so I bought Deere... at $89.00. I like tractors :). After watching Cramer and DE for 2 weeks I decided I'd better get away from both. I sold the DE for a small loss and considered it an investment in my education. Operating on the basis of doing the opposite of what he says; I watched last nite to see if he mentioned dry bulk. He was asked about DSX and drew back as if from a hot flame. He stuttered, mumbled and danced backwards. He didn't diss it; he just recommended a couple of other shippers. I thought ... he's in cahoots with a bunch of bigger folks (including himself) who are buying this stock with both hands while it's down. When they get done; the stock will go up ... when it peaks he'll yell buy, buy ... and he and all his buddies who bought while it was down will sell to the newbies, folks who follow him and others who just see it inching up and want in. Does this make sense to anyone but me? If this is; in fact, his strategy (one of the many, I'm sure) then I'm too new to catch all the intricacies that I'm sure exist but I wonder if some of you who are much more experienced than I might share your thoughts/experience with the rest of us. Since DE; I don't watch Cramer much but I sort of do watch what's posted on the net. I've taken a contrarian view of his suggestions and have actually done quite well when interested in anything he's touting. I found it hard to believe that he/they could have enough overall effect alone; but I read that China had had a major effect a year ago and so .. if they anticipated that and then added whatever their effect might be .. it would just be more gravy for them. I'm very sure they're experts and trends and are capable of putting together a package strategy that also involves outside influences. These are just thoughts .. not facts and; who knows, perhaps I'm as delusional as I suspect Cramer is. :)
Wow, I never realized people felt so strongly about Cramer. Time for my two cents.
I would suggest that you continue to watch his show. He does give some really good ideas and if you are a newbie, you will learn a lot of investing fundamentals and analysis. Having said that, never buy a stock based solely on his pitch. Also, never buy a stock he likes until you watch it for a few weeks, monitor how the price moves, get familiar with its particular story and its sector story. Most importantly, the reason for buying the stock has to make sense to you, regardless of what other people are saying. FWIW - I have made a lot of money using his ideas (not always his stocks, clearly he got DSX wrong).
Regarding DE...I'm guessing you bought it as an ag play since this is how Cramer was touting it. I think it is a good long-term story (FYI - I DON'T own DE). All you have to do is read the U.N. story today. It did get smacked around a little due to the earnings report, but these are short-term problems (raw materials costs & building sector). Since the earnings report, they have increase their dividend & stock buy back plan, announced the acquisition of an irrigation/water management company and is expanding its capacity of harvesting equipment. Point is, the story and reason you probably bought the stock is still there and has not changed.
Hope I don't piss too many people off with my view regarding Cramer.
PS - If you do watch the show - ignore the lightening round. Nothing good ever comes from it.
I don't see any problem with any of your response. I've decided it all swings like a pendulum and the thumper might be Cramer or the guy next door or a hairdresser or the gal at Kroger's that gets the thing shooting skyward or crashing to the depths of despair. All of that changes on another rumor or maybe an analyst with gas. Who knows. Simple enough .. I can learn from anything or anyone. I listened to a little of his show tonight and heard a couple of things that were useful. Sometimes I learn what I want and sometimes I learn what I don't want. Both are knowledge.
Cramer is a beady-eyed bobble-head. Never trust a beady-eyed bobble-head. In other words... you should never trust or rely on someone who won't look you in the eye when they talk to you. He talks as though he's getting ready to run from something.
You are correct about Cramer and his followers, I have found that when Cramer says buy I sell or get ready for a drop.
Don't rely on this board or anyone to decide for you what stock is good and what is not. I started out at http://simulator.investopedia.com I set up simulator portfolio and also started reading the Investing for beginners. Fools.com is also another place to find good information, so is Forbes.com. Cramer is the worst place to find out anything. The only show I watch on CNBC is Squawk starting at 6 a.m. eastern, but even they pump or dump a stock. Mostly what you need to decide is what sector you like then decide on a few companies. Study those companies, find all the information you can about them. Watch the trading everyday and compare that with the business news of the day. You might be able to find a pattern that will tell you when is a good time to buy in. I usually spend 2-3 weeks watching a company before I'm ready to buy. I spend about 80 hours doing research. If you are long term investing, like for 401k or IRA, you are not just buying the stock. You are hiring the company to make you money. Know what direction the CEO wants to take the company. Read the interviews they've done. Look for everything you can on the company, then decide to buy or not.
Last bit of advice: Don't invest all your money in 1 stock or even several stocks. Only invest 20% to start with while you learn. You may not make as much, but you won't loose as much. Watch out for sharks, they are everywhere.
Cramer made an error telling people to get out of DSX ahile back and now doesn't like to comment on it.
He interviewd the CEO and when he asked the CEO if the Future was bright for the next several years he did not like the CEOs answer. The CEO was smart and said that in the near and mid range future it was but that no one had a crystal ball to look out many years and make a statement.
Cramer then told everyone to sell. That was a huge mistake. DSX is a good company with a good CEO.
I too believe that on many of Cramer's calls that he has a hidden agenda.
I also believe that he makes as many mistakes as us newbies make on his calls.
Last one: he gets hung up on what he calls the best of breed and that automatically makes all the other stocks in the secotor worthless. This is a totally false belief.
I watch his show for the names of companies I have never heard of and then go read about them for myself.
There is one thing he says many times that I totally agree with and that is to study the company for at least 1 hour and make your own decision.