Mad Money Manual - Cramer's Mad Money (8/28/08)

Stocks discussed on of Jim Cramer’s Mad Money TV program,August 28.

This segment was originally posted on 5/28/07.

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. `

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Comments

[Richard Col...:]

I have to agree with Cramer on studying every stock you own at least once a week for 1 hour, but who has that kind of time. I guess I own too many stocks.
Daniel Kowkabany

2008 Aug 29 10:50 AM

[veryold:]

This man has done more to promote financial savvy to the general public, and especially to young people than anyone that I have ever known in my 84 years. Financial illiteracy is the norm. It isn't taught. Give the man some credit. People who criticize Cramer are jealous of his exposure. Now how do I get my grandchildren to pay attention?

2008 Aug 29 12:32 PM

[Ruffdog:]

"Veryold" you are also wise! I listen to Cramer and study not only his recommendations but also his reasoning for a recommendation. Then I look at the stock. I have made a lot of money off Cramer's recommendations.
The ones that criticize him should consider his recommendations as potential short plays.

2008 Aug 29 06:09 PM

[Ruffdog:]

"Veryold" you are also wise! I listen to Cramer and study not only his recommendations but also his reasoning for a recommendation. Then I look at the stock. I have made a lot of money off Cramer's recommendations.
The ones that criticize him should consider his recommendations as potential short plays.

2008 Aug 29 06:09 PM