Today's example of why you don't ever take stock advice as 100%

[Russ Smith]

On Friday Jim Cramer on CNBC's Mad Money said the big play for next week is Apple (AAPL). Cramer said for those who think AAPL is too expensive and are waiting on a pullback, next week is your chance. Apple announces after the bell Monday and although their numbers will be good, "they won't be as good as the street wants and the stock will fall." Buy AAPL Tuesday and then on Thursday it will go up when AT&T announces earnings and explains how the Iphone helped them get there.

So today Apple announces huge earnings beat, stock was at 185 on Friday, closed at 189 today, and is over 200 after hours now.

Personally I think the people on Fast Money are MUCH better at this stuff than Cramer is.

 

[jefftheshark]

Until CNBC is divorced from GE, there's very little information to be gleaned that is not pure propaganda.

So that being said, where is the best source for business information?

JTS

 

[Russ Smith]

Until CNBC is divorced from GE, there's very little information to be gleaned that is not pure propaganda.

So that being said, where is the best source for business information?

JTS

I have to admit I mainly watch CNBC to see some of the guests. They get access to information from guests that I sometimes find interesting.

But in general I agree, taking actual advice on what to buy and sell from listening to CNBC is not recommended.

What surprises me is the power someone like Cramer has, if you watch Mad Money they have live trades going on at the bottom of the screen and almost without fail as he talks up a stock, that stock will go by on the screen below because someone watching his show has bought it based on his advice.

I looked at the AAPL board on yahoo finance today and they were all joking about how wrong Cramer had been on AAPL today.

 

[82CardsGrad]

The Fast Money crew are very good. But let's face it, there isn't anyone walking the planet that is worth putting your own money behind. The markets are a pure crap shoot, driven by levers and controls only a small few have access to... By the time the info trickles itself down to people like Cramer, or the Fast Money folks, and eventually down to me and you, it's dated, worthless and nothing more than pure conjecture... Sure, some get it right every now and then, but so do I. Would you take my advice? Hope not...

Stock picking is a losers game, just like betting on football. IMHO, think LONG TERM. Invest in solid, cash-strong multi-nationals... And don't try to pick the next Google... You might get it right, but odds are very much against you.

 

[Russ Smith]

The Fast Money crew are very good. But let's face it, there isn't anyone walking the planet that is worth putting your own money behind. The markets are a pure crap shoot, driven by levers and controls only a small few have access to... By the time the info trickles itself down to people like Cramer, or the Fast Money folks, and eventually down to me and you, it's dated, worthless and nothing more than pure conjecture... Sure, some get it right every now and then, but so do I. Would you take my advice? Hope not...

Stock picking is a losers game, just like betting on football. IMHO, think LONG TERM. Invest in solid, cash-strong multi-nationals... And don't try to pick the next Google... You might get it right, but odds are very much against you.

Totally agree. I was playing around with biotechs recently and twice I made about 15% profit in a few weeks. Both stocks got FDA approval and went down slightly but I had bought in early enough I still made a profit although less than I'd planned on.

I tried a 3rd time, SPPI, stock had 2 approvals coming up a few weeks apart. First approval stock went down, then they did a secondary, then Cramer bashed the stock on tv, and then they got a CRL (not a denial but not good from the FDA) and the stock tanked. I lost about 40%. Those kind of stocks are a total crapshoot because you can't ever know enough to make anything but a guess. In that instance the company even admitted they were stunned to NOT get approval.

I learned my lesson, had I kept the same money in Intel, Brocade, Net App and Glaxo Smith-Kline I'd be way ahead now, I'm actually slightly down as a result of the SPPI loss.

 

[RonF]

I would suggest watching Dave Ramsey on the FOX Business Channel. Cramer is more of an entertainer than a stock advisor. Whereas, Ramsey will show you how to stay out of debt. Everything is against us when we invest in the stock market because of rampant insider trading, hedge funds and extreme bonuses to CEOs which are paid out before the investor sees anything.

I did buy some stock ealier this year in a Chinese car manufacturer called "Build Your Dreams." The stock symbol "BYDDF" was just over $3.50 a share when I made my first purchase and have made 3 other buys since then due to it's rising success. The CEO is a genius and accomplished many things with electric car batteries and engines thought impossible at one time. I first heard about it when Buffet purchased $250,000,000 worth of shares when the stock was just over a dollar. Please do your own "due dilligence" and see if you agree with potential of this company.

 

[conraddobler]

Little guy investors should simply study up on a few great companies, then invest the money and forget about it unless the situation changes.

You can't beat the Street to the information, people literally move servers next door to the exchange to cut miliseconds off time..... think about that and digest that next time you think you can outwit them.

YOU AREN'T LIKELY TO WIN unless you have inside information or luck, on the other hand if you invest money in solid companies with solid futures then things tend to work out better for you over time.

 

[Derm]

Cramer is nuts and needs to be on medication. The fast money crew are on meth and need to chill-out.

I would take all of their advice with a grain of salt. They do have some good info but without research, it's more risky than a crap game.