GO
Loading...

Cramer: Sell Half Your Netflix

Wednesday, 1 Dec 2010 | 7:36 PM ET
No Huddle Offense
Cramer gives you a defensive strategy after today's bull run.

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.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
NFLX
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • 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."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.