Mad Money

Mad Mail: Buy Wells Fargo?


Jim:Wells Fargo is either an extremely attractive opportunity, or a bottomless pit. The stock is down huge in less than two weeks, as everyone assumes it has as many problems as other banks. Does this make sense? --Ron in Texas

Cramer says: “I nibbled a little for my charitable trust. To some degree, I have almost no financials. I felt like I ought to have some. Because they still are representing about 11% of the S&P. This one is one of the best. There was an article out today, saying they have to cut the dividend. That freaked people out. Plus it’s a big part of the SKF, the index that people use to shoot down stocks. If Wells Fargo’s in big trouble, then every other bank is in huge trouble.”

Mad Mail


Dear Jim: You often recommend that we wait for a stock to pull back before buying shares. How do you determine the price to start buying shares in a company? Is it a mathematical equation, a review of the stock's price history, or just a best guess? --Todd

Cramer says: “Ever since I got negative in September…all bets were off on almost all my recommendations, except for the ones that are recession-resistant and high yield…I would not be recommending a stock unless its on [a dividend] yield basis…it’s a yield percentage that I’m buying on – not a stock price.”

Jim's charitable trust owns Wells Fargo.

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