I've been reading Cramer almost daily for 12 years and I can tell you that he only likes stocks that the market currently likes, and that are generally fully valued. He only jumps on board beaten down stocks after they have already made a big recovery run. He likes to think of himself as a master of company fundamentals, and a value investor, but he's really just another momentum trader. However, I'll concede that he's a pretty good one.
I remember that Cramer first recommended PGH and a couple of other CanRoys, when they had had a big recovery from their elevator ride down after the Canadian government lowered the boom. As I remember, PGH was approaching 18 (up from 12) when he recommended it. It peaked at about 20, then headed back down below 15 more or less permanently. Thus, his recommendation basically missed the recovery boat, and was good for only a couple of points. Cramer himself would probably have bailed on this stock at 20 if he had actually bought it, and moved on, but people like me, who at the time were taking him at his own representation as a value investor, ended up riding the stock back down before he got around to publicly acknowledging his change of sentiment. I have learned from this and countless other examples to take Cramer's stock recommendation as merely signs of what the market as a whole is well into. If PGH every gets to that point, and Cramer labels it a buy, it will be time to think of selling it.
all i remember from cramer is someone asking him about WHR around the 12/20/11, 12/21/11 lightning round and him saying i dont like it because of bad earnings. the stock was around $45 a share at multiyear lows like pgh and where did he think WHR was going to not recommend it, $25? One month later it shot up to $75 by the end of January that year. another good call from cramer.
whenever stocks are at mult iyear bottoms and have descent business models i buy.
which is his stealth way of saying "i dont want to admit this is a buy" he did not say sell, and he is all to quick to show the bear at will. And yes there are better deals, but at 4? I couldn't help it..added more high 3's today. The assets, potential and today's Alpha post shows how quick this becomes a powder keg with positive market sentiment. I am quite sure they give solid guidance in the cc, all considered. Insiders probably wish they could buy if they were allowed. Friday will be here soon enough.