Cramer: Sell Half Your Netflix

Discipline always trumps conviction, Cramer likes to say. That’s especially true, though often hard to follow, when it comes to his favorite stocks.

Take Netflix , for instance. Regular “Mad Money” watchers no how much Cramer loves this DVD-by-mail rental company that’s transitioning itself into an online streaming outfit. But with the share price doubling since he told viewers to buy it at $102.79 four months ago, he believes that now is the time to lock in some gains.

“I think you should sell half your Netflix,” Cramer said.

This doesn’t mean he doubts the company’s potential. No, he still thinks Netflix’s $10 billion market cap is too small given the opportunity worldwide for its movie service. And he brushes off any talk of competition from Coinstar or margin pressure. Still, discipline trumps conviction.

“Remember, bulls make money, bears make money, pigs—they get slaughtered. If you do not take anything off on this one you are most definitely a hog. You will get slaughtered.”

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    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

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