FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- Time to Sell Eaton?
- Lightning Round: Unitedhealth, Wendy's and More
- Lightning Round OT: Yamana Gold, 3Com and More
- Cramer’s Christmas List: A Coffeemaker, Washing Machine and…
- Cramer’s Christmas List: TJX & Williams-Sonoma
- Cramer: Dubai Debt Can’t Sink These 6 Dividend Stocks
- Cramer: 3 Trades on Banks, Steel
- 4 Enemies of Bull Markets
- Experiencing Technical Difficulty?
- The Importance of Good Breadth
MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Text Size 
Jul.02
6:12 PM ET
Thursday, 2 Jul 2009
When Value Investing Doesn't Work
Posted By:Tom Brennan
Topics:Stock Picks | Stock Market
When the Dow drops thousands of points in a matter of months, listening to some guy on TV telling you that this or that stock is cheap is going to get you killed, Cramer says. A lot of stocks look cheap after the market's taken such a beating, but that doesn't make them so. Besides, you know what happens to stocks that look cheap in an ugly market? They tend to get even cheaper.
Watch this video for Cramer's explanation of why valuation is the worst reason to buy a stock during a big downturn.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
© 2009 CNBC, Inc. All Rights Reserved
MORE FROM CNBC
Data is a real-time snapshot *Data is delayed at least 15 minutes