Hey Skeedaddy: You recommended we sell our shares of Apple when the 3G iPhone comes out. Is that when it is announced on June 9 or when it actually hits the market? I realize this is one of those buy on the rumor and sell on the news plays, but how is that actually done? Do we sell the day of, day after or before? –Martin
Cramer says: Here’s how to scale out of Apple when the new iPhone comes out. If you own 100 shares, sell 25 the day before the announcement, 25 the morning of the announcement and then 25 that afternoon. Hold on to the last 25 shares to see if the excitement sticks around in the stock.
Dear Cramer: In the speculative plays show you mentioned something called "multiple contraction." All day last Thursday I was down in the dumps, sipping my cheap scotch when I saw the beating that GameStop’s stock took after reporting an astronomical quarter. But then I came home and was properly educated by the professor. I maintained discipline and bought while it was low, knowing that the company was not broken, just the stock (temporarily). You sir, are keeping me in the game and for that I salute you and your staff (including props!) –Ryan
Cramer says: The real problem was that in the conference call, the company didn’t sound as upbeat about the future as investors were hoping. That’s a big reason why the stock slipped. I wish management had been more bullish.
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