Jim Cramer's Wall Street Confidential Picks, March 6

Recap of Jim Cramer’s comments on Wall Street Confidential, Tuesday March 6. Click on a stock ticker for more analysis:

NovaStar (NFI), New Century (NEW) and Fremont General (FMT)

Cramer warned, on a day like Tuesday, around 3:30 is a crucial time, since the buybacks stop and the bears start spreading rumors to bring stocks down. Although it is illegal to invent such rumors, Cramer remembers hearing the tall tales when he was a hedge fund manager, but did not spread them himself because he was a "very high-profile guy" and "very easy to take down." He added, "The ethics side is very thin in the hedge fund business." Cramer thinks of NFI, NEW and FMT as "insolvent companies unless proven otherwise" which have "been very adept at hiding a lot of problems," he said. "When I say hiding problems, I'm saying I see illegality."

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Comments

[Andrew Hor...:]

There is way too much weight put on the comment of only a few that are in the media limelight. Remember, only a few years back, some of these same individuals were actually fired from their TV and RADIO positions because they were found to be profiting from their own comments.

While there are also excellent commentators and hosts, none of them are a replacement for individual research. Herd mentality has been in play for some time and that is one of the serious drivers to this markets volatility, Looking long term, some of the more popular comments made recently on a few of of the more popular shows have been merely reaction to what happened rather than forward looking. All of a sudden everyone is saying that they felt that we were in all saying that we were well overdue for a correction. COME ON!

I cannot remember a single significant comment prior to last Tuesday for anyone predicting a big drop. It is easy to be a wall street deckchair quarterback.

And when did the TV and radio hosts become the experts? I thought they were there to report, not to advise.

Let's not feed into the medias own excitement about themselves.


Andrew Horowitz, CFP

thedisciplinedinvestor...

2007 Mar 07 08:47 AM