Mad Money

Mad Mail: Should Insider Selling Be a Concern?


Dear Jim: Greetings. NVIDIA is down a few points this week on, as far as I can tell, insider selling by a few execs (about 300K shares by one exec, 100K by another). Is this enough to cause concern? If not, how do you determine when it is enough to cause concern? -- Jeff

Cramer's Mad Mail

Cramer said: “I tend to look at tech companies and say: ‘Has the stock had a huge run?’” Many tech company executives get paid in stock so insider selling is less of a black mark on NVDA, he said. The company has strong fundamentals and Cramer would use this weakness as a buying opportunity, although it is always good to flag insider selling as potentially detrimental to a stock.

Dear Jim: Love the fantasy football segment this past week. About two years ago, I too determined that all the energy and techniques I spent on fantasy football would be better spent on the stock market. I was flailing directionless for a while until I started watching your show. Now I record Mad Money each day and watch it while I exercise. So you helped both my wallet and my heart become healthier and happier… Awesome comparing Cisco to [Shaun] Alexander and Hewlett-Packard to [Matt] Hasselbeck, because those are two of the winners in my portfolio too. Keep up the great work! --Lawrence

Dear Jim : Big happy boo-yah from Longhorn Nation in Austin, Texas. (I was at the show in March, great times.) Also thanks for getting me in the game; if there were no Cramer, there would be no me in the market. I was curious about Caterpillar . It has been punished recently due to housing, but I recently saw they are making the engines for the military's new Cougar vehicles. These are mine-resistant and great news to our soldiers fighting abroad…do you think this is already factored into CAT's price or is this just another reason to jump on while CAT is down? --Tommy

Cramer said: “People think [CAT] is housing and there’s just no changing that perception as hard as I try.” The military contract is not priced in the stock and is terrific news, Cramer said, and he remains bullish on the company.

Jim's charitable trust owns Caterpillar and Hewlett-Packard.

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