Jim Cramer's Mad Money In-Depth Stock Picks 6/14

Recap of Jim Cramer's radio show on Wednesday June 14. Click on a stock ticker for more analysis:

Ethanol Hype: Verasun Energy (VSE), Archer Daniels Midland (ADM), The Andersons (ANDE) and MGP Ingredients (MGPI)

Cramer believes that ethanol is becoming much too popular to be a good buy anymore, and he is certain that it will go down soon. Verasun (VSE) has just gone public, and Aventine Renewable Energy is taking steps in this direction, which means that the market will be flooded with cheap ethanol stocks. The CEO of MGP, Tim Newkirk, commented on Tuesday's show that was ethanol was overhyped. Cramer recommends selling off ethanol incrementally rather than dropping it all atonce.

Not-So Marginal Concerns

Cramer says that buyers and sellers affect the market more than the Consumer Price Index, and that those who borrow to buy stocks, or buy on the margin, are a good investor's worst enemies. These buyers dump stock quickly in panic sell-offs and create artificial, bubble demand which makes the market volatile. Cramer firmly tells those who buy on the margin to get out of the stock market.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.

Comments

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2006 Jun 15 12:07 PM