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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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Feb.07
3:40 PM ET


There’s a divergence going on with the insurers, Cramer said on Thursday’s Stop Trading!. The old-fashioned, conservative Prudential [PRU  Loading...      ()   ] missed its earnings, sending shares down nearly 7% in mid-afternoon trading. Meanwhile, the usually “dicier” Metlife [MET  Loading...      ()   ] is surging after saying on a conference call that its subprime exposure has inflicted minimal damage.

Cramer said Prudential “may be a buy here” because its earnings miss was negligible and the stock is selling cheap to its book value. Metlife is also “really, really good here.”

Even AIG [AIG  Loading...      ()   ], which disclosed some of its bad paper a couple months ago, is “not a bad company,” the Mad Money host said. But Cramer's reluctant to recommend the stock because the declining share price has him wondering whether the insurer’s disclosure was not enough.

The problem is that it’s still hard to tell just how much exposure the large insurers have to real estate. For investors looking to avoid the sector entirely, Cramer recommended two different insurers, Chubb [CB  Loading...      ()   ] and Travelers [TRV  Loading...      ()   ].


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