Dear Jim: Could you please comment on the SEC vote today on a modified uptick rule. Will it help, or is it just window dressing? -Harold
Cramer says: “It was just window dressing. From the very beginning they were talking about having it be a 10% circuit breaker. Stock goes down 10% and then you can’t short it. OK, so here’s what you would do if you were a bad guy [at a] hedge fund – this is not what I would do; I’m telling you this is what they will do: They’ll knock it down 10%, and then the next day they’ll knock it down another 10%, and the next day they’ll knock it down another 10%. I mean, do these people ever know what goes on, on these bad trading desks? Not only that, but they’re not even going after the people who do naked short selling. Let’s do that. This is the type of thing, I just wished they had called me in because I literally would have told them, ‘Guys, you just don’t know what the bad guys do.’ That’s what the bad guys do. But anyway, they’re naiveté never ceases to amaze me.”
Jim: Congrats on the new Mad Money High Noon show. It looks like another winner for you and homegamers. Last year you advised homegamers to sell Dendreon before the drug Provenge got approval from the Food & Drug Administration…Now that DNDN is up, would you say DNDN is a long-term buy? -Lou
Cramer says: “We did say that Dendreon was a long-term buy. We reconfigured and the stock has been up since. We also mentioned it as a great speculation. So the answer is: yes.”
Jim: Booyah from Sin City. I love your show and appreciate what you do for all us novice investors. Our energy dependency continues to fuel profits for other nations. Your push to get the word out about natural gas as a bridge fuel should be commended. With the President's recent announcement on loans to help fund two nuclear reactors, where does natural gas stand? Also, I wanted to get your thoughts on Cosan. -Mark
Cramer says: “Here’s where natural gas stands: It stands absolutely nowhere. Why is that? Because the president’s not behind it. We continue to try to push it, and we are not deterred by the fact that other people in the administration are not in favor of it. Ethanol is a blight – that’s Cosan. It uses a lot of water, it doesn’t produce any real energy that we need, it’s just a sop to the farmers. Natural gas – how about the Canadians? They’ve been turning around a liquefied natural gas hub where they thought they’d import. They’re now exporting natural gas. We’re going to have to do the same thing. Why? Because our country doesn’t endorse it. Can you imagine when we export energy, how embarrassing that’s going to be, because we’re so busy building windmills? And I have nothing against windmills.”
Jim: Your show is great; thanks for the education. I’m up about 25% on Home Depot and a lot more on other stocks using what I’ve learned from you. Lately, I was considering World Wrestling Entertainment, but it seems like they added some debt lately…Should I grapple with it or push off to something else? -Rich in Gainesville, Fla.
Cramer says: “This has a good yield, but it has no growth. That’s like a bond. I like yields that grow. In other words, meaning the dividend goes higher. That doesn’t have it.”
Hi Jim: I have been holding Brocade Communications Systems and was still breaking even, but now I’m looking for a graceful exit. They recently reported weakness in their Ethernet business, and the stock got slaughtered. Now what? I want to get out, but don't want to get trampled in the stampede for the door. Is it better to just walk away immediately and not look back, or wait for the dust to clear and start phasing out? -Stephen in North Carolina
Cramer says: “The door’s already been open, everyone’s already been trampled. Now you might as well wait for it to rally. Remember, we recommended the stock around [this price level], and then when it moved up to $8 on speculation we thought it was time to ring the register. At these prices, I would not sell the stock.”
Jim: I have been in Smith International for over 6 months now. I bought it at around $27. Should I wait for the deal to go through, or should I take my profits now? -Danny in Phoenix
Cramer says: “What are you crazy, Danny? Ring the register…Smith International is done. Let’s find the next one. What do I like as the next one? I like Weatherford . That’s why I’ve been buying it hand over fist for my charitable trust. I think that’s a good one.
Cramer's charitable trust owns Home Depot and Weatherford International.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? email@example.com