Today on Mad Money, Cramer explained Monday’s Research in Motion-fueled rally in the Nasdaq.
Every stock has an axe. It’s the analyst that knows more about a particular name than any other guy on Wall Street. When the axe moves, usually all the other analysts fall in line behind him.
Research in Motion’s axe is American Technology Research’s Rob Anderson. Yesterday, he raised his RIMM 2009 earnings estimates to $4.60 a share from $4.25, and his price target to $205. This new target is much higher than anything Anderson’s peers have put down on paper. In genuine Wall Street gibberish that big a number is called a “street high,” and it makes everyone else reconsider his position on RIMM.
And that’s what happened. Sanderson called RIMM the best growth story in tech, and investors pounced. The stock jumped seven points, and because Research in Motion’s an umbrella stock, it carried the rest of the tech stocks on the Nasdaq with it.
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org