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skono4

01/11/06 8:56 PM

#449594 RE: choad #449592

This was Monday's opening feature on Mad Money

http://stockcharts.com/def/servlet/SC.web?c=ATA.TO,uu[m,a]daclyyay[da][pb50!b200][vc60][iUb14!La12,2...

looks like somebody saw them coming
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langostino

01/13/06 12:46 PM

#450079 RE: choad #449592

Cramer's game

Has remained the same. He pre-positions himself and his favored list, then uses the Bubblevision telecast to pump, pump, pump. He's a shameless sleaze-pimp. But he knows the racket and how to manipulate markets.

But you know the phrase, if you can't beat 'em, join 'em. Cramer's manufactured a great momo and pump/dump audience and the daytrading set is willing to use him as its vehicle to play the game too. He's as good a catalyst as any other.

Notice that he's working with smaller and smaller cap issues - stuff he know the reach of his broadcasts and the fast money that will game off him can move and move quickly. Just so long as you know what he is and what his game is, and that it all revolves around a bunch of people profiting in the short term by making others wind up the proverbial bagholders. Just make sure you're the former, not the latter.

Oh, BTW, I wish I had saved the series of correspondence I had with him over Sandisk and Apple from a couple years ago. I'd explain the fundamentals of the businesses, the leverage in the earnings model, etc. etc. and he'd give his customarily arrogant super-surficial responses. I find it the height of comic exercise watching him act like he's "discovered" some great buy in Apple and Sandisk, finally flipping 180 degrees on them after they were up respectively 150% and 400%. Ditto for Ceradyne (CRDN). He gave me the business about that one too. Only after it was up 100% later did he suddenly "discover" it for his audience and start pumping it.

It wasn't so much that he was wrong. We're all wrong in this business, most of us regularly so. :-) It was the absolute hubris and arrogance, the unwillingness even to allow for the possibility he might be wrong (seriously, you wouldn't believe the disparaging terms with which he bashed Sandisk's business when it was trading in the 18-20 range).