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AVoiceOfReason · 07-14-2005, 04:17 AM

I sold ROST last night when it was down 8% from the purchase price. Cramer actually mentioned it last night, said it was OK, but he liked TGT better. Not quite a ringing endorsement, and I already have decided how to manage the account. Another 20 or so stocks were bought, bringing my fund to around 90% invested.

HOWEVER, a caller asked this precise question--do I sell when something is down 8%, and Cramer said "It depends on why you bought." If for a trade, then yes, get out. If for an investment, then it's time to check the fundamentals and see if maybe it's a better buying opportunity. Buying more at 8% down is hardly doubling down, but in this instance, Cramer is in direct conflict with William O'Neill of IBD, who has the firm rule that 8% down equals an exit from the stock.

Cramer is very hot on tech, and is blessing many stocks that would not pass the IBD test of being in the upper 80% of earnings growth. For example, PEP is only rated as C+ on IBD and he liked it, and PIXR was one he said he wished he owned, and it has a D rating. He is, at the moment, a raging bull on buying stocks. He just slobbers when DNA is being discussed. That one, however, is an A+ on IBD's list.

07-14-2005, 04:17 AM	#32 (permalink)
AVoiceOfReason Psycho Location: Greenwood, Arkansas	I sold ROST last night when it was down 8% from the purchase price. Cramer actually mentioned it last night, said it was OK, but he liked TGT better. Not quite a ringing endorsement, and I already have decided how to manage the account. Another 20 or so stocks were bought, bringing my fund to around 90% invested. HOWEVER, a caller asked this precise question--do I sell when something is down 8%, and Cramer said "It depends on why you bought." If for a trade, then yes, get out. If for an investment, then it's time to check the fundamentals and see if maybe it's a better buying opportunity. Buying more at 8% down is hardly doubling down, but in this instance, Cramer is in direct conflict with William O'Neill of IBD, who has the firm rule that 8% down equals an exit from the stock. Cramer is very hot on tech, and is blessing many stocks that would not pass the IBD test of being in the upper 80% of earnings growth. For example, PEP is only rated as C+ on IBD and he liked it, and PIXR was one he said he wished he owned, and it has a D rating. He is, at the moment, a raging bull on buying stocks. He just slobbers when DNA is being discussed. That one, however, is an A+ on IBD's list. __________________ AVOR A Voice Of Reason, not necessarily the ONLY one.