Mad Money with Jim Cramer - MAD CAP RECAP - The Official Mad Money Blog
RSS FEED
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
- Remorseful Regulator Leads Reform Fight
- Lightning Round: AT&T, Verizon, Novartis and More
- Lightning Round OT: Alcoa, Weight Watchers and More
- Why Amazon Rules Retail
- Nordic American: Sinking Ship or Titan Tanker?
- Cramer: What Monday’s Housing Number Really Means
- Cramer: Buy These Banks, If...
- Time to Buy Treasurys?
- Lightning Round: Las Vegas Sands, ADC Telecom, Satyam Computer and More
- Lightning Round OT: Knight Capital, Ebix and More
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 
Web Editor, Mad Money
What’s the best way of “Getting Back to Even” – the title of Cramer’s new book – after the horrible market declines we saw throughout 2008 and early 2009?
Speculation, the Mad Money host said Wednesday.
Of course, the so-called experts advise against managing your own money, telling you instead to dump your nest egg in an index fund. But Cramer couldn’t disagree more. He believes everyday investors, Mad Money’s viewers, have what it takes to pick winning stocks, even if there’s a bit of risk involved to keep things interesting.
 |
In fact, that’s the whole reason he recommends speculation. For a lot of people, stock research can be tedious and boring. So the edge-of-your-seat fun that comes with a long shot can keep people in the game.
SLM Corp. [SLM
Loading...
()
] certainly kept things interesting. The stock jumped 21% on Tuesday alone, thanks to a massive earnings beat, and it’s up 62% from Cramer’s June 5 [31128943] recommendation, which is when he called it his speculative stock of the year. At the time, most investors thought President Obama’s intended reforms for the student-loan industry would kill Sallie Mae, but Cramer’s research seemed to predict a different outcome.
Not only was SLM trading below $7 back then despite a previous buyout offer of $60 a share, but also CEO Albert Lord told a banking conference at the time that, reform or not, his company would stay in business. Not to mention, Sallie Mae was packing $2 of earnings power per share and trading at just three times earnings.
Management said today on its conference call that the 26 cents a share earned this quarter should jump to 50 cents to 55 cents next quarter, over $1.50 in 2010 and even more in 2011. So while Cramer urged SLM shareholders to take some profits, he said the stock’s “got room to run.”
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes