On Tuesday night’s “Mad Money,” host Jim Cramer talked about selling and how many people have misconceptions about selling. Cramer explained to viewers that waiting until the stock reaches a certain price, even a break-even price, can back fire. He used as an example the case of Netflix (NFLX). It rose from the $50’s to the $200’s. Once several of its plans backfired, there was still time to sell. Then, the price dropped even lower after a series of bad calls by NFLX management – and there was still time to sell. NFLX closed Tuesday at just $77.37 after falling almost 35%. The point Cramer was making is that a stock can always go lower and there is no guarantee it will ever go back up, no matter how strong its performance had been.
Jim Cramer discussed the following stocks on Mad Money on Tuesday night:
Netflix (NFLX): Cramer is recommending sell NFLX after it lost almost 35% Tuesday. John Griffin’s Blue Ridge Capital had a $292 million position in NFLX at the end of the second quarter.
Kinder Morgan Partners (KMP): Jim Cramer is recommending this pipeline master limited partnership. KMP closed Tuesday at $76.83, down 0.3% on the day.
Enterprise Product Partners (EPD): Cramer is also recommending this pipeline master limited partnership. KMP closed Tuesday at $44.53, up 0.86% for the day. Osterweis Capital Management’s John Osterweis had more than $69 million in the company at the end of June.
Energy Transfer Partners (ETP): Jim Cramer is also bullish about this pipeline master limited partnership. It closed Tuesday down 0.33% to finish at $44.79 a share.
Hecla Mining (HL): Cramer is recommending sell on this stock. It closed Tuesday at $5.69, down 1.22% on the day.
Goldcorp (GG): Cramer thinks GG is one of the best gold stocks available. GG finished trading yesterday at $47.54, up 2.79%. First Eagle Investment Management’s
Jean-Marie Eveillard had more than $182 million in the company at the end of June.
Randgold (GOLD): Jim Cramer also likes GOLD just as much if not more than GG. GOLD closed Tuesday at $109.60 a share up 5.07% on the day. Jean-Marie Eveillard is also bullish on Randgold.
GLD (GLD): While Cramer was careful to explain that he like “the proxy for gold, not the stocks,” he said last night he prefers GLD. It closed trading Tuesday up 2.84% on the day, to finish at $165.59 a share. John Paulson’s Paulson & Co had almost $4.6 billion in GLD at the end of the second quarter.
Telecom Argentina (TEO): Jim Cramer called this stock a bargain. TEO finished trading Tuesday at $20.22 a share, down 1.41%.
Vodafone (VOD): Cramer likes VOD as well. It finished trading at $27.87, down 1.21%. Eagle Capital Management’s Boykin Curry had more than $232 million in the company at the end of June.
Atmel (ATML): Jim Cramer likes this stock, but he recommends investors wait a few days before buying ATML. He thinks the stock is in a rally that will break soon. ATML closed yesterday at $11.01, down 1.08% on the day.
Ford (F): Last week, F reached agreements with the United Auto Workers union, signing a four-year contract and avoiding a strike. Cramer thinks the agreement will work well for F and he is forecasting the stock will rise “slowly, but surely.” Cramer cautioned that “if the stock is at the $13 level before it reports… he doesn’t think it will be able to break out.” F closed Tuesday at $12.43, down 0.64% on the day.
ARM Holdings (ARMH): ARMH is a favorite of Cramer’s. He likes its new licensing deals and he thinks the stock is strong overall, even though it is trading at 46 times its earnings and posting a 14% growth rate. ARMH closed Tuesday at $27.99 a share, up 0.97% on the day.