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Road Rules
Road Rules Video Gallery
Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Dear Jim: Hey, I just thought that I would let you know that it is officially 
"Bear Awareness Week," May 13-19. As a bull, I wish they would rename it "Bear Awareness Weak." --Chris

Cramer says: A look at the option expirations for Friday showed the market “expand big,” Cramer says. That’s a sign that bears are “going to be in jeopardy for the next few days.” The market’s going higher, “and it’s obviously not done.”

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Dear Jim: You picked Level 3 Communications [LVLT  Loading...      ()   ] as your speculative stock of the year. In reading the annual report (homework), I noticed they are asking shareholders to approve a reverse stock split in four different ratios. You’ve said that reverse splits are never good news. Does this change your opinion on LVLT? --Nick

Cramer went through the documents for the most recent quarter and didn’t see a mention of a reverse split, but there is a shareholder meeting next week. “Here’s what we know: LVLT did a quarter that was really good,” Cramer says, “the stock had doubled and then it pulls back. That has been the habitual way that LVLT trades.” Cramer believes there’s a bandwidth shortage, and he thinks the best way to play that is with LVLT.

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Dear Jim: I work for the Marine Corps Center for Lessons Learned here in western Iraq (Al Anbar). I work in Fallujah, which is a lovely town as you know. Mr. Jim Cramer, you’ve got some fans over here, and they say "BOO-YAH!" --Capt. Tony Licari, USMC

Cramer says: “I say boo-yah to you! I say I’ll send any amount of merchandise from ShopMadMoney.com. I will send anything to the men and women in uniform,” who are in a very tough situation, Cramer says. “I know that making money is secondary, but I sure hope one day I can make you a lot of money when you get back.”

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Dear Jim: I'm wondering if you missed the news on Syneron [ELOS  Loading...      ()   ]. In the Lightning Round yesterday, you recommended them on their product pipeline, earnings, and Procter & Gamble [PG  Loading...      ()   ] deal, but in your book (Real Money) one of your rules is "When high-level people quit a company, something is wrong". Syneron's CEO and CFO are jumping ship. Was this factored into your recommendation? --Frank

Cramer says: “I think this is a product story.” Cramer never likes to see executives leave, but Syneron just reported numbers, and he liked what he saw. “I still think the stock goes higher.”

Dear Jim: I've heard you say that Nutrisystem [NTRI  Loading...      ()   ] is a bit too much of a fad for you, and you came out and changed your mind on Herbalife [HLF  Loading...      ()   ]. For the past several years, NTRI has consistently grown and even has more plans in the works. It's barely above where it was before earnings (which it crushed), so do you think it's been unfairly beaten down? --Matt

Cramer says: Others may disagree, but Cramer is in a “don’t buy” mode on NTRI. He’s having a hard time recommending this stock.

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