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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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Jan.15
8:28 PM ET
Tuesday, 15 Jan 2008
Is Opportunity Calling?

As we learned from Citigroup [C  Loading...      ()   ] Tuesday, you can’t always trust a company’s dividend. But that isn’t the case with AT&T [T  Loading...      ()   ], Cramer said.

The telco has been a Mad Money favorite for some time, along with Verizon Communications [VZ  Loading...      ()   ] and Altria [MO  Loading...      ()   ], for its regular payout. But now there’s another reason to like the company: A misinterpretation of comments made by CEO Randall Stephenson has punished the stock.

Stephenson mentioned at a conference last week that consumer business had seen a slowdown, but he didn’t expect it to affect his business, mainly because other divisions like wireless were going strong. Wall Street overreacted anyway, though, taking the comments as a preannouncement to the downside.

Cramer has since spoken to the AT&T CEO, and Stephenson was emphatic that his business was doing just fine and investors had nothing to worry about. So now the stock is down 12% from its high, and T’s performance is all but guaranteed by its chief executive. It’s an opportunity too good to pass up, Cramer said.

He’s always recommended dividend-paying stocks for the income they provide. Plus, they minimize the downside to an investment. And with a 4.2% yield, AT&T is worth a look by any Homegamer.


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