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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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Nov.30
11:49 AM ET
Friday, 30 Nov 2007
Mad Mail: Isn't Starbucks a China Play?

Hi Jim!: Don't get me wrong - I'm not disagreeing with you about Starbucks' stock. I'm glad I got out when you told us to, about a year ago. But I have a question that I hope you can answer. While everyone recommends the stocks of Pepsico [PEP  Loading...      ()   ], Coca-Cola [KO  Loading...      ()   ], McDonald's [MCD  Loading...      ()   ], and YUM! [YUM  Loading...      ()   ] based on their growth in China, why doesn't the same factor apply to Starbucks [SBUX  Loading...      ()   ]? Thanks for all that you teach us. --Esther

Cramer says: “Pepsi is not a China play at all. McDonald’s, very minimal China, frankly. YUM, yes. Coke, some. Starbucks hasn’t really had, I think, dramatic success in China. I’m sure they might say it, but I don’t think they are into it. I think that’s one of the reasons again that Starbucks has not ignited itself. I don’t like that stock.”

          __________

Dear Mr. Booyah: I watched your show on Monday when you indicated that your “bulletproof” picks were down. I think you were too hard on yourself. Your viewers should have taken into account your five-day rule before purchasing stocks. Any smart investor would not have pulled the trigger. I have been watching these stocks and have done my homework and I am still waiting for the entry point. I use your info as starting point and have turned 1,000 investments into 210,000 booyahs. I take my profits and invest in secure dividend-paying stocks. Thank you for helping me get out of debt. Remember to tell your viewers the five-day rule is the most important part of the homework. --Lou

Cramer says: “I wrote a whole book about it (Mad Money: Watch TV, Get Rich). The press has consistently disregarded it and graded me from the day the stock pops the next day. I’m very aggrieved about it. But because of viewers like you – I know my viewers know more than my critics.”

          __________

Dear Jim: Alcatel-Lucent [ALU  Loading...      ()   ] seems to be awarded big contracts every day but still no movement. I know that management is a disaster. Will it take mega-layoffs or does it go deeper than that? --Joe

Cramer says: “All it takes is a change at the top. If Patricia Russo gets fired, we’ll probably recommend the stock.”

          __________

Dear Jim: I love your show. The enthusiasm and energy that you project defines your show like no others. I want to invest in some L.E.D. lighting manufacturers and would like to know who you recommend. Thanks for your help. --Shane

Cramer says: “The Genlyte [GLYT  Loading...      ()   ] deal was an eye-opener. I like LSI [LYTS  Loading...      ()   ].”

Jim's charitable trust owns McDonald's.


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