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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