Cramer just recommended my gem, is it time to sell?

[Jimbo]

I mentioned briefly in another thread that I've been experimenting with stock screeners and had found two stocks that I like and have purchased. Well 5 minutes ago Jim Cramer began touting CBRL (the first stock I purchased using this method). So using the "short Cramer picks theory" that seems prevelant in this forum, should I sell on the next up-day? It's already up 4 points from my initial purchase so the profit is there but if I liked it before shouldn't I like it more now?

For anyone interested I've been picking up ETFC lately and doubled my position when it dropped below $12 today. Anyone else here think this stock has been oversold on the sub prime scare and has a lot of value at this level? I see at least a 25% upside from today's closing price. If this stock has any fundamental flaws I might be missing it would be appreciated if you pointed them out.

Jimbo

[ahnuld]

With etrade, from what I understand their mortagge business had grown to be bigger than their brokerage business. With this mess they basically said they are getting out of the mortagge business so how many of their earnings will continue forward? I dont know, but I have the annual report form last year sitting in my corner waiting to be read. It does look cheap, but until I can figure out how much their ongoing business makes, its hard to value.

[Oliver Nipples]

Most likely recommended by JK tonight due to the 8-K they filed late this afternoon. Personally, I'd ride it out.

[kimchi]

What were you objectives for purchasing this stock? If your objectives or reasoning have changed then you need to re-evaluate your position.

I hope you made sell criterion before you purchased. An emotional reaction to a TV show shouldn't be part of your strategy.

[Jimbo]

[ QUOTE ]
What were you objectives for purchasing this stock? If your objectives or reasoning have changed then you need to re-evaluate your position.


[/ QUOTE ]


I planned on a medium term increase of 12% to 15% and then to take my term profit. Since it reached the top of my goal so quickly (which after Cramer touted it I thought it might) I sold this mornig at $41.58 for a 15.1% gain in nine calender days.

[ QUOTE ]
An emotional reaction to a TV show shouldn't be part of your strategy.


[/ QUOTE ]

I completely disagree with this line of thinking. Stock price fluctuations (in the short term) have more to do with emotion than actual values in the underlying fundamentals. This is one reason I watch Mad Money, he causes more emotional individual stock swings than most any other public figure as far as the massses are concerned. This is just the 2nd time I had been on a stock he touted. The other opportunity was RIMM, I made a very nice profit on it as well, too bad it has never stopped going up yet. LOL Even if CBRL continues upwards I met my goal and will go on with my research on other opportunities.

Thanks for the replies to this thread. I took some profit on ETFC earlier and just this momemt bought UA at $59.14 on the downgrade to neutral. This stock will rebound to somewhere in the $64 range a few days after earnings for the 3rd quarter are released.

Jimbo

[Foghatlive]

[ QUOTE ]
I mentioned briefly in another thread that I've been experimenting with stock screeners and had found two stocks that I like and have purchased. Well 5 minutes ago Jim Cramer began touting CBRL (the first stock I purchased using this method). So using the "short Cramer picks theory" that seems prevelant in this forum, should I sell on the next up-day? It's already up 4 points from my initial purchase so the profit is there but if I liked it before shouldn't I like it more now?

For anyone interested I've been picking up ETFC lately and doubled my position when it dropped below $12 today. Anyone else here think this stock has been oversold on the sub prime scare and has a lot of value at this level? I see at least a 25% upside from today's closing price. If this stock has any fundamental flaws I might be missing it would be appreciated if you pointed them out.

Jimbo

[/ QUOTE ]

One of my favorite Stock books is "Profits w/out Forcasting" by Leon Allen.

He describes a typical upward movement of a stock as follows: The stock starts moving up at a rate faster than that of the general market. Something favorable happens for the company. The touts all find out about the stock and start recommending it.

CBRL just had a big bump from 36 to 42. Of course, Kramer gave out the stock AFTER that bump. Thanks for nothing, Jim.

CBRL

[SossMan]

[ QUOTE ]
With etrade, from what I understand their mortagge business had grown to be bigger than their brokerage business. With this mess they basically said they are getting out of the mortagge business so how many of their earnings will continue forward? I dont know, but I have the annual report form last year sitting in my corner waiting to be read. It does look cheap, but until I can figure out how much their ongoing business makes, its hard to value.

[/ QUOTE ]

I thought they were just getting out of the wholesale and correspondant side of the business, not retail. I could be wrong.

[kagame]

ooooh cramer

Market Manipulations

http://youtube.com/watch?v=cxx11tCoZh4