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Aug20
Mad Money with Jim Cramer Review

Jim Cramer is all over the news lately, whether it be over his rant on street signs about the Federal Reserve knowing nothing, or just for the fact that Mad Money is such a heavily watched show. There are numerous blogs setup just to track the show or review his picks each day. CNBC runs numerous advertisement for his show, and his him in the sudio at random times to boost ratings. Can you, the average investor, watch Mad Money and make money?

Every night as Cramer starts the show he tells you it is all about making you money, and that he isn't into the "friend game." The show is definitely designed to be entertaining, and it even borders on absolutely crazy at some points. Jjim%20cramer.jpgim Cramer is certainly an energetic guy who obviously has a knowledge of a large amount of stocks. Cramer is a very smart guy, but there are times you have to wonder how many picks one person should make each day. On some shows Cramer makes about 10 picks in one show. If he makes 10 picks per show, for a month, we are receiving somewhere around 230 picks in one calendar month. I am bullish on the stock market and think there are always several stocks out there that have great stories and should be bought, but 230 picks a month? It seems to me that after a while he would have to be settling for companies who aren't exactly the best, just so he can mention new names.

Cramer also has a tendency to change his mind frequently and seem quite wishy washy at times. For example, Motley Fool has well documented Cramer's constant change of stance in Intuitive Surgical Inc (Nasdaq: ISRG). Cramer changed his mind on the stock 7 times in a 6 month period. This kind of thing can get the individual investor in trouble if they just take him at face value and buy or sell each time he changes his mind.

Mad Money is an informative show, a show that teaches the common investor many things he would not learn normally. It is a show that gives a lot of stock ideas for investors to research on their own. You should never simply buy or sell a stock that anyone recommends without researching it on your own, and Mad Money picks are no different. The show can get crazy at times and Cramer can be overly critical of important members of the banking system as he has of late. Personally, I believe his personal attacks on Ben Bernanke have gone a little too far, and they are becoming just a stunt to get more viewers rather than him pouring his heart out as he says.

Watching Mad Money will help you learn new things about investing, but you have to be careful not to go after everything Cramer suggests. Cramer is a very knowledgable man who knows his stocks, but the show simply has too many picks. I personally watch the show when I get a chance and read up on a Mad Money Recap online somewhere if I don't watch it. It's a good idea to listen to what Cramer says some, but its also essential to understand the flaws of the show.


4 Comments/Trackbacks




Aaron,
I bought some GRMN this morning before it took off, got to love this stock. What is going on with NILE, do you still think it has potential upside?

--Doug
www.tomorrowsnewspaper.blogspot.com

GRMN was extremely strong today and is a great stock. NILE scares me too much to commit new capital to it, even though the growth there is very impressive. The PEG ratio is over 3 at NILE, as compared to under 1.5 at GRMN. Good buy with GRMN it will more than likely outperform.

Sometimes Cramer gets them right, as seen with his Jones Soda picks http://www.stocktagger.com/2007/08/defending-jim-cramer-jones-soda-jsda.html

John,

You are definitely correct. Cramer has had some tremendous calls. JSDA is one of them. He also did well with AMLN, CROX, UA, and CMG. Cramer is a bright guy, but I wanted to point out some of the shows flaws as well. Thanks for the link.

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