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May.05
8:42 PM ET
Tuesday, 5 May 2009
Off the Charts: Cliffs Natural Resources

Mad Money’s weekly “Off the Charts” segment is often a Cramer-versus-them affair. Regular viewers know how he feels about the study of charts, or technical analysis. He likens the practice of predicting a stock’s movement in the future by looking at its past moves as nothing more than divination. Truly, investors are better off consulting the tarot or maybe reading chicken guts.

Cramer trusts a stock’s underlying business more than any performance chart. How clean is the company’s balance sheet? Is management executing well? What does the sector look like overall? These specifics, combined with the macroeconomic perspective, are better indicators, he says, of the share price’s potential to go higher.

But sometimes a chart is just too good to ignore. Even during his time as a hedge fund manager, Cramer knew this. At these rare instances, he’d go out of his way to find fundamental reasons to buy the stock. He didn’t want to miss out if a company was about to break out.

Well, Cliffs Natural Resources [CLF  Loading...      ()   ] has just such a chart right now. Watch the video to see why it’s so attractive, and to get Cramer’s fundamental case for why CLF should be bought.

Call Cramer: 1-800-743-CBNC

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