Miss Potential Gains or Take Profits Now?
Jim: I know Pepsi has been one of your favorite stocks in consumer staples. I am concerned lately because it seems to be languishing just above its 52-week lows. I know they reported great results and announced the bid for Pepsi bottling and Americas…what gives – is this something to be concerned about or will Pepsi still win the cola wars? Thanks! - Paul
Cramer: "I do not have profits in Pepsi in part because they’ve been making these bids. You have correctly hit on what is keeping this stock down. And now it looks like there’s bad blood. This is going to be long, drawn out and I’m afraid Pepsi could be sitting out the staple rally. I don’t want to tell you to sell it, because it’s got a good yield and it’s the cheapest I’ve seen it, but it will not move up anytime soon."
Jim: A couple months ago when you recommended Freeport McMoran - I bought in at $27. Now that it’s around $50, should I sell and take a profit or do you think it still has a lot of room to run? I don't want to get out of it too early and watch it go up to $80-$100. Missing out on some extra Gs would make me sick. I still believe in FCX’s story, but I don't want to get too greedy. Thanks! – Adam
Cramer: "Adam, listen to me. That whole concept of missing out would make you sick? No. What would really make you sick is giving up that gain. You must sell this stock. If you give up that gain, I will never forgive you. Do not worry about the upside. You have a huge win. I am concerned that you have the wrong balance of what you should care about. I care about the risk, you already have the reward."
Cramer:My one-year-old son Henry loves your show - he was wondering what you thought of JDS Uniphase as a spec stock for his portfolio. - Johnny
Cramer: "Unless you want child services to come to your house and take away your kid, you do not buy that JDSU for him. I will call child services. It’d be cruel and unusual punishment to buy the stock. I just don’t like it."
Cramer's charitable trust owns Freeport McMoran and Pepsi
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