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Oct.25

11:01 AM ET

Thursday, 25 Oct 2007

Mad Mail: Are Margins Considered Cash?

Posted By:Carlo Dellaverson

Topics:Stock Market | Stock Picks | Mad Mail

Companies:Intel Corp | Hewlett-Packard Co | Cisco Systems Inc

Dear Jim: I liked your analogy to Cisco [CSCO Loading... () ] being a 40 MPH stock. Personally, I'm an investor who prefers city driving to the highway. Can you recommend other stocks in this driving range? Maybe have a show for the "Easy Rider"? –Paul

Cramer says: Intel [INTC Loading... () ] and Hewlett-Packard [HPQ Loading... () ] are both in that range. These names won’t explode higher but will creep up over time.

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Dear Jim: I found Friday's show very informative. You mentioned that a pro always keeps some cash aside in his/her portfolio. Are margins considered cash? I am fully invested with my own money, but I do have available margin buying power. I am wondering if I should count that into my cash portion of my portfolio. Thank you and keep up the good work. –Tim

Cramer says: “That is precisely wrong.” Margins are not cash and Home Gamers should never think of it as that.

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Dear Jim: Love the show. My five-year-old girl knows when it's boo-yah time for Dad and lets me watch my TV for an hour. After watching IPO Week recently, I researched further and now have a favorite speculative play to include in my portfolio: Athena Health [ATHN Loading... () ]. Questions: Buy it before its earnings conference call on November 1? And do you still think it works in a potential slower economy? For diversification, does it count as service, healthcare or tech? How do you do what you do??? –“Harbs”

Cramer says: Athena counts as healthcare and should post a good quarter. Just be cautious and only buy half.

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Jim's charitable trust owns Hewlett-Packard.

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