long_on_oil

Cramer's Lightning Round - The Most Dangerous Stock for 2009 (12/23/08)

I record and watch Mad Money daily and Cramer has recommended several stocks that have done well, but in an up market that is easy for anyone to do. I bought NOV, COP and RIG all on his recommendations. As a viewer you have to remember one thing, it is your responsibility to sell at the right time too. You never make money by buying, you make your money selling. That is where Cramer is lacking. He is quick to recommend buying but to slow on the sell side.
NOV and RIG both pulled back 25% before he finally said to sell or take some off the table. Then again, to his credit, oil fell so fast it caught everyone by surprise. I wish I knew the stats but I bet more people have lost money taking his advise than have made money.
Cramer is probably right on NOV but as an investor, not a trader, your mission is to buy low and sell high. NOV has an upside down ratio of about 9:1 right now and they are a great company making a product that has a fantastic future. My prediction is if you buy NOV at $22 you will make more money within 5 years than any other stock Cramer recommends next week.
If you do buy NOV at $22 you have to sell half when it hits $60 and the other half when it hits $85. Never forget, it is the sell that makes you money, not the buy.