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Road Rules
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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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Dec.18
7:21 PM ET
Tuesday, 18 Dec 2007
Mad Mail: Medco or Express Scripts?

Mr. Cramer: On Monday you highlighted “visibility stocks,” one of which was Transocean [RIG  Loading...      ()   ]. You admitted that every time oil goes down a buck the stock takes a hit, but you insist it’s undeserved because of their long-term contracts. I agree with you in theory, but in a stock that hasn't paid a dividend in nearly six years, why should I care about reality when perception rules the value of my portfolio? I'm a young person - still a student - and a new investor, and this question is applicable to a number of stocks. I'd appreciate it if you could explain how to deal with this paradox…educate me, Jim! --Mark

Cramer says: Transocean is a pure growth stock. The company doesn’t want to pay a dividend. It just wants to keep returning capital by making the stock go up. Yes, conservative investors want a dividend. But RIG has growth, and “growth is what the market really loves.”

Dear Jim: Last night, you recommended Medco Health Services [MHS  Loading...      ()   ] and it looks intriguing. However, I already own Express Scripts [ESRX  Loading...      ()   ] and have been rewarded there. Does it make any sense to switch to MHS, or add a position in MHS, or would you recommend increasing my investment in ESRX? --Jan

Cramer says: “ESRX is really good. I would not switch. I like Medco a little bit more. But I owned Express Scripts and made a bit amount of money in my charitable trust.”

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