Stock Trading and Other Things

Jim Cramer bashed my stock and it's down 7%. Is it time to buy now?

I usually don't pay attention to the financial media, but I do read Yahoo! news posts on my stocks and saw that Cramer bashed American Superconductors, which is one of my favorite long-term holdings and an excellent vehicle for trading. It was down 7% today. Normally I assume that no one individual or firm is smarter than the market and take these as buying opportunities, but Cramer has such a following I wonder if his influence lasts more than a day. Has anyone looked at his effect on small-caps for a somewhat longer period? I'm not questioning Cramer's judgment or defending my stock, I just wonder if the reaction to his negative comments has been studied objectively.

Thanks,
houyhnhnm

Public Comments

1. My guess is that Jim Cramers statements on any given company are founded on realities, so therefore after listening to him, we all need to then do our own analysis and make our conclusions. And yes, he probably does have some influence on performance.

2. Yes, I made money becuase of him. He told the listener to sell FDG, and I bought on that day. I sold it when he told his listener to some jump back on energy sector, and I made some profit.

I don't pay attention to those expert either, only a fool would will do. Stay ahead of them, don't lose your hard earning money.

3. thestreet.com has an excellent article on Cramers advice. The contributor was showing how people get in trouble just blindly following his advice..like i did with bookham not taking the time to realize their quarterlyy report came out the next day. bummer...

4. First you need to evaluate the stock as is not in context to its drop. Does the stock have potential? What stock is it? I do technical analysis and perhaps the stock is not technically strong. In that case you are better off walking away.

My experience is analysts like Cramer bring visibility to stocks you may not have considered, but you should still evaluate it and see if it makes sense. He is human after all....

Good luck with your trading.