Mad Money Guide - Cramer's Mad Money (6/3/08)

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday June 3.

Tuesday's Mad Money program was a re-broadcast of a show that initially aired on May 28, 2007.

Mad Money Guide

While Cramer admits he’s not money genie in a bottle, he is also not just “ a sad clown who sips cheap scotch on his dirty linoleum floor either. I can't make you rich. I am here to give you advice." While he is confident in his abilities as a stock picker, Cramer advises viewers wait on buying a stock they see featured on Mad Money until they do their own homework.

Any diversified portfolio will have some losers, and often it is more important to look at the reasons behind the recommendation than at the individual stock. Cramer’s rule of thumb is that 50% of the performance of a stock is determined by its sector. He encourages viewers to look not only at his individual picks, but at the themes he is suggesting, such as good dividends and defensive stocks. Cramer claims he is “the most misunderstood man in show business,” and he feels most profoundly misunderstood when critics compare his Lightning Round Picks to stocks discussed in other segments.

A Word about Lightning Round

Cramer says the features on the main part of his program are very different from his Lightning Round calls, because the latter he usually likes or dislikes because of the stock’s sector. Often he will like a stock pitched, but will suggest another in the same sector that is best-of-breed. “Trust me, there’s always a method to my madness,” Cramer said.

To those who criticize Cramer for changing his mind about stocks often, he replies, “You have to understand that the market is dynamic, things are constantly changing and my opinions will change, too.” Cramer urged viewers to do an hour of homework a week for every stock they hold. "I don't say that because I want to reduce my liability. I say it because if you do homework, you'll probably make a whole lot more money,” Cramer said. `

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and his Stop Trading! Picks.

Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com

Comments

[Bellylaugh:]

Yeah, he's misunderstood alright all the way to the bank.........

LOL

2008 Jun 04 11:26 AM

[tom kern:]

it's all about sales and who can do the best job of it, laughing their way to the bank in the process. that is why it is called "mad money". it is difficult to understand the process and direction or predicability. a guess is more accurate in determining success or lack of in the markets.

2008 Jun 08 07:28 AM