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Mad Mail: Get Rid of Earnings Quiet Periods?

Jim: In addition to reinstating the uptick rule and enforcing naked short-selling rules, how about one more? Let's get rid of this quiet period in front of earnings announcements. I believe this was put in place before the rule mandating public dissemination of information. It seems outdated to me, and it allows shorts to make legal yet false statements about companies who in turn are not allowed to respond. Shouldn't this rule be abandoned to even the playing field for the small investor? --Mauro

Cramer says: “I think if you can [catch] a couple of guys lying, saying that they knew what they were saying were false statements…you just need to bring one or two cases and that game is over.”

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Dear Jim: I am 24 years old and in the U.S. Army. I started trading stocks in February and have since doubled my account, using only your advice and fundamentals training…Your unbiased advice and outlook on how to read the market is gold to me and I can rest assured knowing that through watching your show and reading your books, my family and I will live a prosperous life. --Todd from Kentucky

Cramer says: “Thank you, Todd…this is from an actual viewer, as opposed to the critics who have never seen the show.”

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Jim: I was doing my homework for a possible investment in Honeywell. In reviewing the most recent annual balance sheet, I noticed that 1/3 of their total assets were goodwill and without the goodwill, the company would have had a negative stockholders' equity. Not to castigate HON in particular, I've just never heard you mention how you deal with goodwill when analyzing a company's balance sheet. Furthermore, I didn't hear you mention anything about it when you last had HON's CEO on your program. Will you explain it? --Richard

Cramer says: “Good will accounting is pretty complicated…we should actually go to David Cote on that rather than me opine on the good will situation. But anyway, we do like Honeywell. And we think that the stock is a complete and utter buy here.”


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