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Mad Mail: Gaming Grandma’s Passing?

Dr. Jim: Booyah from the horse capital of the world in Lexington, Ky. I am an accounting graduate student at the University of Kentucky. Through my study of taxes and estate planning I have devised a thesis for a great trading opportunity. In 2010, the estate tax will be completely eliminated. However in 2011, the estate tax will jump back up to 55%. With that much money on the line I am willing to bet that greed will be responsible for an abnormal number of deaths in 2010 … I know it sounds awful, but what do you think about Service Corp. International, the funeral services firm? –Wes

Cramer says: “They also changed the estate tax when I was in law school. And I literally did … one of those ZIP code by ZIP code [checks] of the rich ZIP codes in this country to see if more people died ahead so that their families took advantage of it. They didn’t. I’m not buying the Service Corp. thesis. Because I’m probably the only person in America who’s done that study.”

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Hi Jim: Please tell me how Abercrombie & Fitch works in this environment. It got upgraded on a day that retail stocks were getting hammered. They said they did channel checks. Please let me know what you think. –Greg

Cramer says: “Abercrombie’s coming back. But … I would rather go with best-of-breed J. Crew.”

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Hey Jim: I absolutely love your show, you rock! I'm learning and laughing at the same time, all the while trying to beef up my 401K - can't get that from an episode of Seinfeld. When Tekelec pulled back, I bought some more shares, but looking at the charts recently, it doesn't seem like the stock can find solid ground. Is this puppy sliding lower or do you think there is reason for upside in the near term? Thanks for all you do, and also your great books. –Suny in California

Cramer says: “I don’t ever, ever, ever care about the chart on a company like Tekelec. Because it’s a long-term buy as part of the Internet tsunami. Periodically the charts [of these stocks] will look bad. That’s why I don’t overplay the chart, and I overplay the fundamentals. The long-term thesis is good. You stick with Tekelec.”

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