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Mad Mail: Are the Crocs Shorts Wrong?

Hey Cramer: I am writing to thank you for reinvigorating my interest in the market. I'm a 20-year-old fellow Crimson ('09), and have watched your show since its inception. I loved your New York Magazine article and I want to thank you for your stellar advice on Crocs. I locked in a 233% gain from June '06 to June '07 and jumped back in right before the amazing Q2 conference call. Are the shorts too short-sighted to understand Crocs' long-term story? Love the show, the props, jokes, puns and especially the insight. Thanks Jim! --Brent

Cramer says: Crocs is rolling out a new line of apparel. Crocs is going international. In the mall, obviously there is a lot of Crocs. I think what people are worried about is that the insider selling has gotten really heavy. I think Crocs, it’s still hasn’t been picked up by enough people. I think it can still go higher. I wish there wasn’t as much insider selling as there is, though. So maybe I would temper my enthusiasm a tad.”

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Dear Cramer:I have enclosed a picture of my financially astute 11-year-old daughter, Amanda, reading up on how to move money out of real estate & into stocks. She thinks you're wacky. What stock would you buy for a 7th grader? --Jim

Cramer says: “I am sending you to American Eagle Outfitters. Let’s own it for a couple of years. Good insider buying, and you’re daughter probably likes to shop there.”

Dear Jim: Earlier this month, during the worst of the sell-off, you explained that much of the selling was due to hedge fund managers selling anything they could to raise capital and that it would end by mid-month, BUT that it would most likely begin again the first of September. Given the recent actions by the Fed, is this selling scenario still likely and, if so, what's the best course of action for us little guys? --Kent

Cramer says: “You hit it. Because the Fed moved, the selling will now abate. Because what will happen is, if you haven’t sold yet, you’re probably thinking, 'Oh, let’s give the guy to the end of the year because the Fed’s cutting.' That’s why I don’t think there will be that many redemptions. That’s why I believe we hit a bottom in August. And I’m sticking by that.”

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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