Mad Mail: What's the Best Way to Play Spec Stocks?
Skee-Daddy: I’m confused. You consistently talk about keeping 20% of a portfolio in speculative stocks. I recall you saying that gains from a spec winner can be enormous – a double, triple or more. You’ve also said, “Speculating can keep investing fun.” So, why on last night’s show did you say, “…the lesson to be drawn from the gains and then losses in Level 3 and Rite Aid is that when you have a gain in speculative stocks, you have to sell them”? Are you getting cold feet? You can’t have it both ways, so which is it? --Phil
Cramer says: “When you’re up on speculation, you should take some profit. If I said ‘all profit,’ that’s a mistake. I just want to be very careful. If you have a nice gain, take some off the table. That’s really what I meant to say.”
Jim: I really enjoy your show and I love the new book! Unfortunately, my 3-year-old son doesn’t share my sentiments. He looked at your photo on the cover and called you a “scary monster.” Any chance that you’ll tone things down, put on a cardigan for the cover photo, and write a children’s book on investing? You could teach kids how to fix their inadequate 529 plans and how to turn their babysitting money into life-lasting wealth. --Andrew
Cramer says: “Can I just tell you that there are other people very close to home – how about in home? – who feel the same way about that picture.
Hi Jim: I am trying to keep the faith with Celgene, but it is getting harder and harder as I find myself in the house of pain. What’s going on here…may I have your latest thinking? --Dick
Cramer says: “Have I lost some faith in it? Candidly, yes. But the stock’s moving up. Let’s see where it can go.”
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