Tuesday, February 5, 2008

Cramer as a contrarian indicator

Jim Cramer is great, no doubt. He made people (and me) a lot of money. But sometimes he is getting scared and runs from a great stock. And sometimes this is the best time to buy this stock. Let's make a rule: if Jim doesn't like a great stock which is down big time, it's a "Buy Buy Buy".

I already mentioned Intuitive Surgical (ISRG) on January 14 (link). Yesterday Cramer made a Buy call on it (50 points later!). Two more calls:

1. Apple Computers (AAPL). Stock is down huge, Cramer doesn't like it here/now. I already made my point here, and I repeat: Apple is a Buy.

2. Google (GOOG). Today on Lightning Round Cramer said that he doesn't like Google. Stock is down huge because of "missed" quarter and MicroHoo "Threat". My take: quarter was in line, a penny miss is a rounding error. MicroHoo is not a threat but an opportunity (more here). Buy, especially if stock goes well below 500.

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