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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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Oct.29
11:32 AM ET
Monday, 29 Oct 2007
Mad Mail: Comparing Casino Stocks

Dear Jim: Love the show. I live on the San Diego border and had to pack up the car to evacuate my home of 33 years because of the fires. What to take? What would I need after the fire? 'Real Money' & 'Mad Money' & the notebooks I keep of your shows and my homework. Fortunately, the fire was stalled before my street … just want you to know that my priorities are in order. Keep up the good work Jim. --Sally

P.S. During the fire I was thinking: how would Cramer make money off this event? Who owns those leased tankers that drop retardant?

Cramer says: My heart goes out to those who lost their homes and the firefighters who are doing such an excellent job.

          ________________

Dear Jim: Something that is puzzling me is why would the Street be willing to overpay for one stock versus another stock in the same sector? I have a position in Wynn Resorts [WYNN  Loading...      ()   ] that is trading with a 21 multiple, while Las Vegas Sands [LVS  Loading...      ()   ] is trading at a WHOPPING 143??? By comparison, LVS is expected to generate more revenue per quarter, but WYNN (in my opinion) is the better-run company. It is has higher profit margins, more growth in the immediate term and has positive cash flow. Why is the street willing to pay such a premium for LVS and not for the cheaper WYNN??? --Donovan

Cramer says: “I think you’re looking at a short-term view of LVS …They’re not that different.” WYNN has a 96 P/E and LVS has a 100 P/E.



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