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Sell Block: Opportunities Missed, Money Lost

For this week’s Sell Block, Cramer turned his attention, not to those stocks that missed the mark, but rather to investors who missed what he said was a spectacular opportunity.

The Mad Money host can’t say enough about Nucor . The steel stock’s up 11% since he recommended it March 26. Recently, though, NUE dropped a couple of dollars after a secondary offering – money was needed for a key acquisition – but no one leapt at the opportunity to buy a position. Instead, Wall Street took the decline as a sign that the entire steel sector was trending down.

Well, today Nucor pre-announced better-than-expected earnings, and the stock’s up 12% to $80.54 from that post-secondary low. Cramer’s expecting the gains to continue, right along with U.S. Steel, Reliance and the rest of the sector.

Here’s a rule to follow so you won’t make the same mistake: When a well-run company with great fundamentals does a secondary offering to fund a great acquisition, then the stock drops below that offering price – you must buy.

When a great company’s stock goes down, Cramer said, that’s a sale – and you have to pull the trigger.


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