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Friday, August 24, 2007

Cramers Favorite Retail Trade is GameStop (GME)

GameStop (GME) has been one of Jim Cramer's best trades, having been mostly positive on the stock, it could have tripled your money in a little less than two years. After first featuring the company in November 2005, Cramer told viwers to take some profits on January 11, 2006 at the Mad Money Main Event Lightning Round.

On March 20, 2007, Cramer detracted from his bullish stance on the stock saying, "The new products have dried up a little, so I've got to tell you, I would not buy GameStop (GME) until we get closer to Christmas season. I think it does nothing for now." Four days later, GameStop issued Q1 2007 guidance above analyst estimates and the stock gained a quick 10%. Jim went positive the next day.

Cramer's latest call on GameStop (GME) came on August 22, when featured as a trade on the new Halo 3 launch on September 25th. According to Jim, the game would be a huge revenue generator for GameStop, not only selling games but selling new XBOX 360 consoles. "This game will be huge, but it won't be huge for Microsoft (MSFT)."

Jim Cramer track record on GME

Tuesday, August 21, 2007

Jim Cramer Predictions on Research in Motion (RIMM)

Jim Cramer hadn't gone positive on Research in Motion (RIMM) until June 21, 2006, previously citing patent problems as a reason to stay away. With his first positive outlook on RIMM, Cramer stated "When their 8700 model starts appearing in Verizon (VZ) stores, the stock should take off, and start getting good buzz. That's when you sell."

In mid-January, Cramer included RIMM in a warning to viewers to sell nearly all tech except for Cisco Systems (CSCO), Apple (AAPL), Microsoft (MSFT), Hewlett-Packard (HPQ), and Google (GOOG).

By April, he was back on the RIMM train as the stock began to push through the 140 level, as one of the new Four Horsemen of Tech along with Amazon.com (AMZN), Apple (AAPL), and Google (GOOG).

Jim Cramer track record on RIMM

Sunday, August 19, 2007

Defending Jim Cramer Jones Soda (JSDA) Record

Aside from spending his weekends drinking cheap scotch and reading transcripts of conference calls on a linoleum floor as he likes to say on Mad Money, Jim Cramer would probably like to spend more time as a gentleman farmer, replacing thoughts of stocks with those of crops while at his Summit, NJ residence. So that's why when I heard Cramer defending himself from the critics of his Jones Soda (JSDA) calls in response to a Mad Mail emailer on August 16, I decided to set the record straight. Jim, get up off that linoleum floor! I propose to save the scotch!

Here's JC's response to that email on August 16, 2007: "I recommended that stock in the single digits, then I re-recommended it in the teens. Then it got to the 20s, and I still liked it. When it got to the 30s, did I say to take it off the table? No, I got that wrong. I did not call the exact top. Then it went back down to the low 20s, and I said I'd like to sell the stock. It got to the teens...I could not pull the trigger again. I do not like the stock... That's the history of it. The journalists who follow that story think that that's a bad record. On Wall Street, that's called 'how to make a million'..."

Cramer first recommended Jones Soda (JSDA) after the stock had already gained a significant amount of interest on Wall Street, noted by a rising stock price and trading volume, on December 21, 2006 as a regional to national retail story. After Peter Van Stolk appeared on the show for the first time on January 29, 2007, Cramer advised viewers not to buy, as the stock had already run up nearly 5 dollars from his first recommendation. The call didn't last long, as on the next day Cramer advised a caller to buy JSDA down at 14, a small dip from the then current price.

Peter Van Stolk appeared on Mad Money again in March 2007, and Cramer proclaimed "This is one of the greatest quarters I've ever seen!" The stock quickly doubled as it ran into the low 30s in nearly a month.

It's true that Jim Cramer missed the exact top of Jones Soda, but his first bearish call came on April 4, 2007 with the stock down 8 points from a high of 32.60 to 24.60, saving viewers a drop to 10 smackers where the stock sits today.

Jim Cramer track record on JSDA

So how might the avid "Mad Money" watcher have performed if they followed every Cramer recommendation. For greater accuracy, I'm using next day open prices to calculate performance and nullify the after hours "Cramer effect." Let's see - 12/22/2006 buy at 11.99/ 1/30/2007 sell at 14.59 (+21.68%), 2/1/2007 buy at 14.00 / 5/1/2007 sell at 23.50 (+67.86). Without even trying to catch an after hours price, the viewer may have captured a gain of nearly 90% in six months (not to mention a great short opportunity after May 2007)!

Sorry "Leonard the Monkey," this one's for Cramer.

Wednesday, August 15, 2007

Cramer Stays Bearish on Starbucks (SBUX)

Jim Cramer pushed Starbucks (SBUX) throughout 2006 citing strong overseas growth, especially from a growing presence in China, but the stock couldn't push past 40 as worries about decelerating domestic growth and a weakening brand presence frequented the news. Cramer went bearish on Starbucks (SBUX) at the beginning of 2007 and has stayed negative, saving viewers from a 28% decline during a drop from nearly 35 to 27, where the stock sits today. Jim often includes Whole Foods Market (WFMI) as another former high growth darling that should not currently be owned. Howard Schultz, billionaire Chairman and Founder of Starbucks, has been a friend of the Mad Money show, appearing four times as a guest.

Jim Cramer track record on SBUX

Tuesday, August 7, 2007

Jim Cramer Accuracy of Level 3 Communications (LVLT) Calls

Jim Cramer has been recommending Level 3 Communications (LVLT) as early as March 2006 when the stock was at 4 dollars in change. He began to push the stock more heavily beginning in September 2006 when he featured it in the main segment of Mad Money saying it could be a double in the next 18 months. The stock was at approximately 4.5 so we will be looking for 9 dollars by March 2008. Since that call, we're currently sitting on an 11% return of which about 8% came from the first day after Cramer's initial recommendation. Between September and December of '06, Cramer announced that Level 3 Communications (LVLT) could or would double a total of four different times. On December 5, 2006, he changed his outlook to "will double within the next two years." On January 5, 2007, LVLT was placed highest among Savient Pharmaceuticals (SVNT) and Rite Aid Corporation (RAD) as the number one speculative stock of the year, citing the coming bandwidth shortage from rich media sites such as YouTube. He has no longer been claiming that the stock will double, but persistently refers to LVLT as one of his favorite speculative names.

Jim Cramer track record on LVLT

Monday, August 6, 2007

Cramer Celgene (CELG) Mad Money Picks

Celgene (CELG) is one of the stocks with the most bullish mentions on Mad Money with Jim Cramer. It has been featured 13 times as a stock to buy in the special section. Cramer has called it a favorite of his and has predicted that it could be a possible takeover target a total of 3 times as lately as 4/30/2007. Bob Hugin, President and CEO of Celgene has been a guest on Mad Money's "On The Line" segment 3 seperate times, including once on Mad Money's Back to School Tour at University of Virginia's Darden Business School.

Jim Cramer track record on CELG

Wednesday, August 1, 2007

Cramer Finally Bullish on Elan Corporation (ELN)

Jim Cramer has been negative on Elan Corporation (ELN) through 2005 and 2006 but when recently queried in the June 18, 2007 lightning round, he reported "I've been too negative on Elan (ELN)"..."At $21 bucks, it's got that great relationship with Biogen Idec (BIIB)"..."The safety of Tysabri is no longer in question as far as I'm concerned. That stock is going higher!" The stock has pulled back recently but Cramer has mentioned healthcare and drugs as industries that will benefit from the financials' downturn.

Jim Cramer track record on ELN