Sell Block: Dealing With Cramer's Duplicity

On Thursday’s Sell Block, Cramer told viewers to take profits on Google, Apple and Research in Motion. But these stocks are a buy too, he said.


As always, there’s a method to the madness. You see, Cramer is bullish on these stocks for the longer-term. After all, they’re three of his Four Horsemen of Tech (Amazon.com is the other.) But Google, Research in Motion and Apple have been walked up in price by institutional investors, Cramer said.

Home Gamers could never buy enough Apple to move the share price, but the big money managers can purchase stock in the hundreds of thousands and even more. Taking such a large quantity out of the market bumps up the price just because of the simple law of supply and demand. In a nutshell, big funds are using their weight to make a quick buck after missing the strength in these stocks. Cramer said this is what has been pushing the Four Horsemen higher most recently.

But all this artificial buying, as Cramer called it, will stop with the end of the quarter on Friday. Historically, this has caused a rapid decline in the stocks, he said. So while Cramer expects upward revisions when the GOOG, RIMM and AAPL report earnings, driving the share prices higher, he still thinks it prudent to take some profits before the stocks take a quick dip.

Aside of that, Cramer recommended selling Savient and Chattem . They earned 31% and more than 100%, respectively. “Time to ring the register,” he said.

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