tv Mad Money CNBC August 14, 2015 6:00pm-7:01pm EDT
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67 1/2. >> we'll end it with dan. >> twitter -- or excuse me, tesla, i'm not a buyer here but i think you look at risk reversals for stock replacement. >> looks leek our time has expired. i'm melissa lee. thanks so much for watching. for more website. see you back here friday at 5:30 p.m. eastern. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to kram america. my job is not just to entertain but to educate and put it in context. call me 800-743-cnbc or tweet me @jimcramer. you know what, we're at a bizarre moment where overseas woes, who knows who is next, brazil, could rebound positively
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in the u.s. at the same time, though, this overseas weakness dessimates the international worries and it's a world turned ugly where we don't know a winner from a loser unless it reports outstanding or terrible earnings. a good number can inch your company's stock higher. a bad one and it's katie bar the door. so where will the door be barred next week going forward? first up on monday, we hear from estee lauder, which, with its makeup products has become the worldwide package good company. amazing. i know it's difficult to fathom owning stock that has 30 times earnings but when you repeatedly post surprises, portfolio
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seeking growth buy your stock at any price. of course, we saw what happens if you miss in cosmetics. however, estee lauder is much higher quality and i think it can, once again, trump the estimates even as it has moved up in tandem with its own excellent earnings performance. i wish i could say the same thing for this guy, for the retailer that reports after the bell monday. urban outfitters. at one time this chain was among the most consistent high-growth retailer on earth with a tripod of good stores, the flagship urban, anthropology and free people. now it's only free people, which by the way is a small division delivering consistent numbers. it's maddening. the good news is that it's come down a good deal and the bad news it could go lower and i believe that's what we're going to get because it's become like the gap with the flagship not delivering.
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i'm truly disappointed by this company's performance. maybe it's because i remember the glory days but the retail doesn't stay glorious forever. tuesday we have housing starts. giving that renting is now the most expensive it has been versus owning, remember, interest rates are way down, you would think we would see a good number. the housing stocks haven't traded off this report instantly in ages. well, then, a few days later, people recognize that housing is in bull market mode. what do they come for? dr horton. i think you ought to play this industry going forward. tuesday's earnings because we get the results from home depot and i mentioned the situation because home depot has been the place to go to fix up your home. home depot has become the most consistent retailer out there of all retailers in the universe. i suspect it will do well and
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tell a fantastic story but the payoff can be slim. only if it gets hit on monday on some sort of random devaluation. speaking of china, walmart reports on tuesday and walmart is enough of china's currency devaluation because they buy so much goods from the people's republic. i think the turn here is a long one and doug mcmillan, the new ceo, is turning things around but it's like turning around ten battleships, not one. that's it. i feel like the down side is getting more limited because it's got a good size yield and if the quarter is remotely decent, don't worry about missing a big up move. i want to hear what they have to say before i suggest you pull the trigger because the last few quarters have had -- they've had to slash the earnings and you
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want consistency in retail, how about tjx? that's delivered time and again. i like the exposure to europe and home goods and i like marshal's although it will be brutal coming from the european division. again, tjx is like home depot. ross doors, which i'll mention in a moment, tjx and home depot are the best retail stories out there. and everybody knows it. you know what is not priced for perfection, lowe's which reports on wednesday. i like lowe's as a discount to home depot but it sells the products that people need to fix up their homes because they are investing in their homes now. i keep mentioning china because that's the cause of all that is bad and you don't want to buy lowe's if we don't get those discounts because it was very strong this week and now has little room for any shortfall. now, one stock that has really
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lagged as of late is target. that's a key holding with my childhood trust which you can follow along and we've been cautious on target in our bulletins because with the exception of the hardware companies and nordstrom, all retail has been tough. the stock yield is almost 3%, cash flow on the rise. i say wait until target reports and if it breaks down to the 3% yield level, buy some more. i suggest you buy some hormel. it's been the most consistent food stock and i love its acquisition of applegate farms recently to become more natural and organic than spam might be. i bet wednesday's report will be good. crm, i've always found that buying ahead of dream force which is in september, see you there, has been a particularly good idea. i bet the ceo will have a
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terrific story to tell. we've heard from ross stores which was priced for perfection and the stock is too high for its own good. i've seen it go down when it has had the big runs into the quarter. friday is the most controversial day of the week because we get deere's results. the stock has been strong. remember, a competitor told a pretty good tale but crop prices are not so good and plummeted and i have an appetite for deere with an expensive stock price. i'm going to say, be careful. finally, one more domestic investment and i would say five federal reserve guys have got to come out on air and say we need rate hikes. and if the chinese flail like a fish after it has been netted -- anyway, foot locker. it sells the hottest wares in
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the hottest trends in retail. it's amazing to see the rally in the sketchers and the nike and underarmour. i think this stock is terrific. foot locker is hardly undiscovered. that said, it's the cheapest of the price for perfection crowd and one day next week, one day there will be an event that will drive us lower. foot locker may be the best trade of the week. but again, only on a dip, not here. so let me give you the bottom line. we've got top flight companies reporting next week, including the best of the domestic retailers. i smell profits. but only if you buy on dips unrelated to the u.s. economy. may i just add, how ridiculous is that? let's go to roger in california. roger? >> caller: hi, jim. boo-yah. thanks for all you do for us. >> thank you. >> caller: my question is about hewlett-packard, ticker hpq.
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>> yes. >> caller: they are going to be splitting into two companies, hp enterprise and the other one is pcs and printers. i read your book, get rich carefully and in it you state that sometimes when companies split up, the parts are worth more than the whole. do you see this happening with hp? >> i've got to tell you, roger, i think the quarter is going to be bad. that said, the stock has been horrendous. so it's a possibility that you could make money on the breakup but i'm not going to recommend it because i have so many breakup situations that are positive that i don't need one that i am tepid on. john in florida, john? >> caller: i'm starting to question the value of reading annual reports that come out three and four months later. it appears to me it's almost like reading a mutual fund, past performances no longer indicative of future performance. especially now with everything focused on guidance, why bother with annual reports. just listen to guidance and make your mind up.
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>> you're absolutely right. i like to use annual reports of a refresh you are about the things that a company may be doing and thinking about. but, yes, it's not current. it's just kind of -- let's put it this way. it's kind of like the intro duct tree, the preamble to doing the research. remember, look for opportunities to buy on weakness next week. on "mad" tonight, from netflix to the dollar shave club, everybody is joining the subscription business game. and a great place to find recent winners, does that mean that they are all buys? plus, even the hottest stocks need to be sold at some point. yeah. i'll help you find the right time. stick with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. tweet #madtweets. send jim an e-mail to
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♪ increasing ree we live in a subscription economy, where both consumers and businesses get what they need via continuous subscriptions that serve like netflix or the dollar shave club, not to mention all of the cloud base providers of enterprise software on a subscription basis. this is growing to a point where many companies need help managing their subscription programs. that's why i went off the tape to dig deeper. a privately held service company provides businesses with automated billing to help them run the subscription-based business. in a world where every customer is now also becoming a subscriber, i think zuora can give us insight into how all of this is playing out. i got to talk to the ceo of
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sdplchlt uora. to find out more about his company and the new way of looking at the economy. take a look. >> i've got to tell you, i didn't know until i did the research on your company, there is a subscription economy growing a lot faster and you're at the heart of it. how did you come up with it and was it from some of your time in salesforce? >> customers today don't want to buy products. why buy a dvd if you can get a movie from netflix or hulu. why buy a car if you can get from point a to point b with uber. and companies don't have to buy software anymore if they can get everything they need for their businesses from services like a salesforce.com or google. companies are realizing this today and going beyond the product delivered what we call a subscription experience. the broader trend here is a shift from product-based economies to subscription-based economies. >> do we want subscribers what you do or is it the person we subscribe to that has the
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information and you push the stuff we may not necessarily want? >> well, the best subscription companies in the world are not trying to push you something you don't want, not trying to sell you stuff on late night infommercials. they are giving you something that changes your life, giving you the outcome without dealing with the hassles of asset management and they are changing your lives. in your personal life, you're probably buying less and less stuff because you're getting all of the things that you need from the services that you can access from your phone. >> that's absolutely true. i find that there's a transparency to -- maybe a lot of that is what you bring to the party. >> well, what we find is, what we do is help companies really deliver that subscription experience by wrapping what they do around a subscriber identity record to help turn their customers from somebody that is maybe they will buy something to a subscriber and most importantly from a financial perspective, a business model that really wall street prefers. >> after this quarter when i saw how well netflix has done and
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the companies that have done well are companies with sustainable subscription models. >> yeah. >> my first thing out of the box was thinking, why don't you -- you've got to be scaling. why not go public right now? >> we're in a really fast space if you look at -- >> you're the dominant player in a fast moving space that has recurring reverend few. that's what i want as a shareholder. >> we want to focus on building the company, sli the organization. when we're ready, we'll go public at that time. >> okay. one that we may not know that you are powering? >> if you look at it, our customers are from diverse areas, we have technology, pay walls behind newspaper, the straight times, city morning herald down in australia, the financial times. we power a lot of manufacturing companies. they are all being driven by this trend called the internet of things where they are putting sensors on their product. the first step is to make the
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products better and the second step is wrap services around the products and know what our customers are doing with their products and this is really transformational for our business today. >> i know he's got that great subscription model. what would you be i believe to tell him that would make it so he would be a better provider to his customers? >> we provide a whole wealth of information. we tell them the right price plans that are working. $10 plan, $50 man, silver plan. which ones are really working? we are launching a product through an acquisition that we made, a subscriber analytic product where we tell him, look, if you give us all of your subscriber behavior, which customers you should target. >> that's the killer app for someone where you can say i worked for at goldman. >> which customers are more valuable. >> that's great. >> unlocked potential. >> you've got a great, great business. i want to share it out there. can't yet because it's still private.
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it's really a list of the smart kids in school and a great bull market from where we have in the bottom of 2009 and any market, by the way, that doubles from the bottom has to be considered a great bull market. >> hallelujah. >> even as so many resist such labels, we saw this phenomena over and over again, new high after new high after new high and following them was a great way to make money. even as the bears claim endlessly that the bull market was false and couldn't be trusted. let's see if the bears caused you to miss out on the greatest rallies in history. obviously the rallies since the bottom is more like the exception than the rule in all the times that i followed the market. generally speaking, things have worked with what will continue
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to work. because these stocks typically represent companies that are best of breed. always remember that phrase. it's integral to "mad money." i'm not saying that just so you can chase stocks hitting the new highs because they will keep going higher. that's the ultimate foolishness. i'm saying that if you want to identify stocks that we have in the future, unless there's been a change in the market, caused by a radical shift dramatically higher in interest rates, looking at the biggest winners of the present is a pretty good place to try to figure out the future. let this list do it for you. it's already been scrutinized and scrubbed. that's the thing about the market. it's not always that hard to play once you understand that there's often more continuity than change. things pretty much going -- keep going the way they are going. until something major shifts and then you have to alter course. the course changes can be pretty radical and that's why you always have to be re-evaluating your ideas and never dig in your
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heals and all of my books that i've written, my autobiography, which is more of a score settling tone, settling scores with myself, of course. hey, it isn't called "mad money" for nothing. but you know what, when you're looking for stocks to invest in, when you're hunting for the bull market like i always do here, this is the way to begin. i don't pluck names off the high list because i say these names are going up that's lazy and irresponsible. i'm many things. a lot of them negative. but lazy and irresponsible, i don't know. 504 at jim cramer knows -- someone saying, is that someone else tweeting for you? you can't do that. and then they say, do you ever sleep? no. at least not for any long stretch. i play the same stand sards that i used at my old hedge fund.
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i rarely recommend buying stocks straight off the new high list unless there's special circumstances. i'll talk about that later. what i do like to do when hunting for stocks and what you need to do is wait for the fable pull back from the new high list because that's the best place to put money. the pull back and there i'm thinking about something that could be two or three, preferably 5%, that gives you a good lower price entry on something that is on that list. remember, i am not telling you to chase momentum. you should always be conscious of price and therefore try to buy on weakness, just like you want to sell into strength. most people can't pull the trigger when the stock is going down. i'm telling you, if it's on the new high list and comes down, they are your man. i'm throwing these caveats. big mistake. i'll be at a very important one for those trying to get started. pouring over the new high list is a way to identify potential stocks to buy. you only buy stocks that pull back from the new high list if you are confident that they will
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make a comeback for substantive reasons having nothing to do with the market. you have to do all of the same homework you do before buying a being to. it's not that you don't get it past there. you have to have conviction even if it's a cynical conviction that the stock is going higher and i do that for a lot of the ipos where i say, cynically, i know the buyers go crazy about it. me, i accept that they are just pieces of paper. the big boys can't resist growth stocks and they come in on down days. the biggest caveat for stocks that have pull back from the highs, make sure that the selloff is extraneous to the business and if interest rates flew up for the new quarter. when oil goes down for three straight days, that probably doesn't belong on the new high list anymore. i always like to say that you're looking for a stock that has bristol-myers because almost nothing has to do with
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bristol-myers. a troubled company going down, down, and down, how do you tell the difference? another key part of my philosophy. if the fundamentals hasn't changed, stock hasn't fallen from grace, profit taking or panic in the market in general. now more than ever, thanks to the fact that stocks are traded by commodities causing huge selloffs that make no sense in everything or double and triple ets related to the stocks themselves, you see the stocks of good companies pull back from their highs for nothing that happened to do at the company. nothing to do with the company or the strength of the underlying businesses. those are the buys. buy, buy, buy! but whatever made the stock attractive to climb its way up to the new high list goes away, the stock is no longer a candidate. sell, sell, sell. while it isn't a hard and fast rule, i tend to like stocks that pulled back just enough but not too much. 8% is the historical optimal
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leveled of a pull back that reeled in a lot of money. less than that, you're going to be early for some of them. more than that, maybe something is indeed wrong with the stock. you just don't know. 3, 5, 8, those are all important levels. the 8% level, man, i've made a killing. bottom line, that's the first message of cramer's madness. watch for stocks that pull back from the new high list because of a broad market selloff. some of my best picks from this process, it's my getting to workshoping list. hopefully yours can to. let's start with arzela in ohio. >> caller: boo-yah, jim. >> boo-yah back. >> caller: i'm trying to get an insight on mutual funds. are they a good way to diversify? >> well, you know what, i've got to tell you, here's the problem. a lot of people have 401(k)s where you have to have mutual funds and you can't pick individual stocks and for that they are.
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20% international, 50% growth, the rest will be kind of a balanced situation, a fund that has some bonds. you have to depend on your outlook and age. yes, mutual funds are fine. try to look at the performance records in morningstar. that's what i use. stewart in florida, stewart? >> caller: jim, what's the best time to use stop orders after you purchase a position? >> no, we're not going to do that because if we're going to trade actively, we're going to have to pay attention to it and if we're not going to trade and invest, we don't need stop orders. because what could happen? the market could be down 10% in a flash day. you would have sold the stock and it bounces right back. you say what the heck happened? we don't play it that way. we invest in "mad money." we're not traders. we invest. all right. there's a method to this madness and tonight i'm reviewing it all. first method, look for stocks that have pulled back from new highs, especially because of a broader market selloff having nothing to do with the individual stock that you want to pull the trigger on. stay with cramer.
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welcome back to tonight's methods to madness special where i'm revealing some of my best tricks for buying and selling stocks, truly timeless wisdom, i hope. next up, how do you find stocks that are great buys? earlier i was talking about picking off stocks that have pulled back from the new high list. i said you didn't necessarily want to buy names right off the new high list because you're paying too much for them. you can usually get a better deal if you wait for weakness down 5, 7% and given how volatile the market has become, there are very few occasions where buying stocks off the high
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list or that close to it is justified but sometimes the stock is so hot, you just have to buy it whenever you can, as soon as you can because it may not be going lower anytime soon. you won't find these often but when you find them, you have to remember not to buy all at once. if you want to buy 100 shares of stock, you think it has so much mo-jo, go ahead and buy 25 shares. you don't get to buy more and grab a quick profit. finally, another stock, believe me, there is always another stock to find. now, i've got an exception where it's okay to buy a stock right around its high. if you see insiders buying the stock when the stock is up already, i'm going to give you a total buy, buy, buy. green light. it's a rare thing to see happen but, in my experience, it's rare that this method of picking stocks doesn't work out. see, i love it when insiders buy after a decent run because that's a great sign of confidence that they think the run is just beginning or there's a big runway ahead and they are sure that it's long lasting.
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remember, you can't flip a stock immediately if you're an insider buyer. you have to wait six months. it's the law. so these people are seeing things that they like that aren't going to disappear in six months time if they haven't appeared yet. normally insider range from being meaningless to a small but on its own insufficient reason to buy a stock. a lot of time you get an insider buying its stock because they want to create an illusion that they are doing better than they really are. insiders aren't stupid, if they are buying their own stocks, even small amounts, the market will smile on them. that means we ignore most tiny insider buying because it could be flim flam. that said, when you get truly colossal, even not at the high, you want to take another look at the stock because it's a pretty powerful endorsement. when the insiders buy a whole lot of stock, it's the volume of the insider buy but we're only
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focusing on one sort of insider buying right now. stocks that have been running and aren't perceived as being historically cheap. these aren't value stocks. there's nothing more arrogant and yet telling then when an insider rolls along at a pretty good clip. they are saying, yeah, we know we rock. our stock has been in fuego. we're going to buy some shares. we're not waiting for a pull back. no. we're buying right here. arrogance, sure. but this is bankable. i've seen it time and again. corporate insiders are not fools. there are exceptions, of course, the "mad money" wall of shame. let's assume that they are buying and they probably do know something. not everyone deserves a benefit of doubt in the business and after the financial crisis and market meltdown in 2008, i know a lot of people think that all ceos and executives, for that matter, are a bunch of crooks, frauds. >> boo!
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>> and now banks, those who got burned by fannie mae or lehman brother. healthy skepticism is one thing. a total willingness to believe in anything positive is something else entirely. if you're going to own stocks, you have to extend some measure of trust. we have a massive amount of consolidation of late, airlines, rental cards, foods, telecommunications, entertainment. perhaps they are buying stock because they hear the footsteps. maybe they've been contacted by some other company and turn that company down. if executives expect that they may be next, it could be a healthy and honest reason to buy. they have to disclose a serious bid. a lot of times you get a phone call and say, no, buy. they do that because the company is worth more than they thought. maybe they think the company could be broken up, maybe the ability to create value and want
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in on it themselves or the stock is running a bit but they don't think the ride is over because they realize how much better it will be when the company is divvied up. for us, it can be a bit reckless and lazy. most investors are smart enough to wait for a pull back. insider buying after decent runs tells me this won't be a pull back and nothing more bullish than that. sure, i want to wait for a pull back after they bought but that's the best of all possible worlds and you usually don't get that best of all possible worlds scenario. bottom line, one more method of cramer's madness. when you see a stock at a solid run, you probably want to be buying, too. bob in new york, bob? >> caller: jim, steeler boo-yah to you! >> what is up? >> caller: jim, i have a question about interest rates. when the fed raises interest rates, good companies with attractive dividend yields and growth prospects suddenly rapidly go out of favor. can you add some clarity to why? >> well, because people
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extrapolate. when they see rates go up, they think it's going to go up for a while and want to get out of what they perceive to be a risky yield, a stock yield and go into what is a certainty, which is a bond yield. so it's all relative basis. rick in california, rick? >> caller: boo-yah, jim! >> boo-yah, rick. >> caller: if my stock hasn't gone down to the average -- >> you can't. the vast majority -- not just a few times, not just the majority but the vast majority of times we pay up above our basis. well, i've got to tell you. >> boo! >> sell, sell, sell. >> when you see insider buying on a stock that's already had a big run, think to yourself, i might want to be buying here, too. after the break, i'll try to make you even more money. qo:é@d8j8j8j
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♪ i've got one more trick to teach you tonight. one more method to my madness. this time i want to talk selling. >> sell, sell, sell. >> which when you buy, the price you buy may be the most important and most undervalued tool in your arsenal. how do you get out before the party ends so you're not one of the last people around to get stuck cleaning up the mess? this is a question that needs to be answered because there's a lot of money to be made owning hot stocks with lots of momentum. hoping you play the momentum game, it's time to leave the table. that's what is crucial. there are always naysayers and virtually all hot stocks implode, except for the ones that over time are able to develop into multiple business
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streams. this happened big in recent years with stocks diverse as chipotle and biotech stocks and all of the negative talking heads that have kept you out of the stock with the recklessness disguised as prudence caused you a great opportunity to make money. people shy away from these stocks because they don't know where they are going to top out. that's understandable. i'd be afraid to buy them, too, if i didn't have a discipline and i didn't know when to get out. luckily i do have one and you're about to learn. when i talk about hot stocks, i mean stocks with low capitalizations. they begin with very little research covers from the brokerage houses. they can go up for a very long time, catch fire and stay on fire for years without sponsorships. the key to find out when it's time to sell is by watching the analyst coverage being rolled out. you have to use your own judgment here but a good rule of thumb is once one of the hot stocks gets discovered and has at least half a dozen analysts, that's right, six analysts
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covering it, the run is going to begin to peter out, not get stronger. it's going to be too big and too well known to go up the way it has. it's the rare stock that doesn't behave this way. you can find out how many guys own a stock by looking at it on the internet. it's not hard to find out that information. this formula has worked for me as long as i can remember. it works because the number of analysts who own a stock is a good gauge of how much awareness and interest there is in a name and names don't get hot and followed and pushed by everybody. they get hot because they get discovered by everybody. hot stocks get tapped out when there's nobody left to be attracted to them. when all of the people interested in in buying them have already bought. eventually everyone who wants a piece of the stock has a piece of it. when that happens, the run is over, people. and then you must ring the register and go home. let me give you a great example. hansen natural. the old monster beverage. that was the name it used to be
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before it was one the hottest stocks in 2004 and 2005, hottest stock for the first half of 2005. it went from $18 and change to $2,000 to when it peaked in 2010. it it was a fad and had to crash. well, it did do that. but as often is the case, it took years for the momentum to run out, not days, months, weeks, years. i know how these stocks work. it peaked in july 2006 and that was because the company did a five for one split and even though the splits aren't supposed to do anything, this encouraged people who were in hansen for a long time, take something off the table. there's another reason i believed it would peak and that was it picked up the fourth analyst in may 20006 when goldman sacks started covering it. there was still upside left but
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prudence dictated that we sell once the stock had four analysts on it. better to clear out early with your wins than to wait for them to fade away. hansen, as with all other stocks, hot stocks started to cool off once it created the analyst coverage. incredibly, after it fell off the radar screen, people stopped talking about it and analyst coverage dwindled again and the stock recharged, powered higher and, again, ultimately coca-cola bought a huge stake in its equity which sent it up even further. it was an amazing renaissance. it's a test meant that when analysts stop covering a company, the earnings start percolating again. it turns out that the fad drink with soda brands that failed to materialize and the biggest one joined it rather than keep fighting it. as analyst coverage gained, the
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stock -- so many analysts started covering it, the stock peaked. when they dropped it, the stock bottomed. that's how it works. let me give you the bottom line. small momentum stocks are worth owning but you must know when to sell and that's when you see too many analysts jumping on the bandwagon. stay with cramer. >> mr. cramer, absolute leet love the show. >> we really appreciate you out there. >> boo-yah. >> boo-yah, mr. cramer. >> i know you hear this all the time, jim. but thank you, thank you, thank you so much. >> this has been my best year by far and away in the market. >> thank you for being looking out for the regular guys out there. >> i'm trying to teach people to do better. i'm doing my darn best. that's the goal here. >> great to hear your voice and know that you're there for us.
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the markets are getting hammered today. i know it's not easy but i promise to keep fighting for you. >> jim cramer leveling the playing field for all. >> the road is a tough one but the payoff can be your greatest win of all. >> join "mad money's" training camp week nights. you've got to get some of
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the tweets that you've been sending me @jimcramer. i get most of my technical analysis from realmoney.com and that's one of the things the best technicians who explained what these terms mean and then show you them in action and that's what i did in this book. next, should i have my money in an index fund or stocks or both? stocks, my friend. that's not the case with 401(k) which is why i like the ira option so much more. next, jim, i've watched you daily for over ten years, daily. you were awesome. you've helped massive amounts of people. thank you. i cannot tell you there are so many people who come up to me
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and apologize that they want to tell me that they like the show. excuse me, jim, i don't want to bother you, but i like the show. when you say excuse me, i usually think you're about to say, boom. no, don't excuse yourself. i am absolutely thrilled that you say you like the show. it means the world to me. i sometimes figure, what the heck do i come out here every night for other than the fact that you like it. and @clearbaffles tweets the following, "please discuss balance to adding the position same apply to etfs." i like to lower my basis by -- as the stock goes down, i buy. as the stock goes up, i like to sell the higher basis or market. i run a charitable trust but typically what i'm trying to do is lower my basis as an owner. why do i want to lower my basis? because i don't like chasing and i like buying at a discount and lowering my basis is the
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equivalent of getting a stock i like of a company at a cheaper price than i got it before. that means i'm getting a bargain if the fundamentals are still good. next, "wyoming has more oil than i have. wyoming wins." >> i have a long research of companies that i want to invest in. how do i narrow my list? you have to figure out which are the best at which levels. try to figure out what level would be the one that you really want to buy something and then stick by it. one stock is coming down and people run from the levels instead of to them. stay with cramer. the gillette mach 3 turbo
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at ally bank no branches equalsit's a fact.. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. cramer! you are super. you are awesome! >> i'm a first time investor. >> thank you for inspiring me to get in the game. >> your show is the best. i'm so glad you're on tv. >> i want you to know that you have transformed me. thank you, cramer. i'd like to say there's always a bull market somewhere and i promise to find it just for you right here on "mad money." i'm jim cramer and i'll see you next time!
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>> narrator: in this episode of "american greed," dr. henry jones, philanthropist, diplomat, international man of mystery. >> he was supposed to have access to all these diplomats in africa. he was supposed to have known nelson mandela personally. >> narrator: through his international ties, jones promises to get investors in on a secret gold deal. >> he was this miracle worker. he was gonna make all this magic happen. >> narrator: but dr. jones leads a double life, living it up with young, sexy wannabe pop stars... >> ♪ shake it, baby
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