Cramer’s Best Buy Earnings Recommendation Gets Crushed

By Damien Hoffman

The Next Best Buy?

The Hoffman Brothers uncovered an electronics retailer which is scaring Best Buy! We're up BIG. See how you can profit NOW.

Jim Cramer HatOn last week’s Mad Money, game show host Jim Cramer told his acolytes “to pick up [Best Buy] BBY before Tuesday morning’s announcement.” First, trading stocks ahead of earnings is the riskiest aspect of trading. Most professional traders close their positions ahead of earnings and decide what to do after the announcement. The reason for this risk management strategy: guessing earnings is a complete gamble.

Enter our circus show friend Jim Cramer. While Jim is busy telling people he’s trying to make them better investors, here he is (again) giving investment advice to use the riskiest tactic in trading. Well, I am sad to say Jim’s ESP was dim, and those who started buying BBY into earnings are now getting slammed. The company missed expectations for margins, and the stock is trading down almost 7% as I write.

As Jim says in his Stock-Picking Rules to Live By, “Just because someone says it on TV doesn’t make it so.”

Readers who liked this also enjoyed these posts:

Cramer: You Can Ride With YRC Worldwide (WSCS: If You Want to Go to Hades)

Cramer Buy Recommendation CIT Goes Bankrupt

RetailStocksBBY

More on this topic (What's this?)
Jim Cramer vs. Wall Street Cheat Sheet
Jim Cramer’s Getting Back to Even
CRAMER and GREENSPAN: Perfect Together, Now Can You Both Get Off the Air!
Stop Trading with Cramer
Read more on Jim Cramer, Best Buy, Net Income at Wikinvest


Sharing Is Cool

Looking for Profits? Wall St. Cheat Sheet Premium subscribers have been crushing the markets with winning stock picks. Let our team of experts give you their best investing and trading ideas.

Click here now for your FREE trial to any of our acclaimed newsletters:

Learn More

4 Responses to “Cramer’s Best Buy Earnings Recommendation Gets Crushed”

  1. Mark says:

    Question: Do you write an article every time Mr. Cramer is right?

    Or is this simple anecdotal evidence that Mr. Cramer is just plain wrong (again and again and again). This is how it reads to me. Am I missing something?

    I’ve watched his show a few times and find him entertaining with some knowledge tossed in for good measure.

  2. Cabdriver says:

    With respect, I disagree. Now I’m really new to this “game”, but over the 4 years I’ve been “studying” [what can I say, I'm retired & don't have a life anymore] this new hobby, I find him correct or early more often than I find him down-right wrong [I gave up on the Fox Noise folk after 6+ months of plum bad calls, they've got one guy over there that really knows his stuff, & he used to be on Fast Money!] Not many have the guts to swing at the pitches night after night, let alone be correct more often than wrong! & is it me, or does he seem to be doing the mea culpa thing more than once a year [he just did one tonight in fact, how many of the other talkin' heads ever admit/own their "bad calls"?] In the end, in this game you’ve got to be willing to “own” where YOU place your bets. I wish we had more people willing to teach like Cramer, maybe 1 in each public school system….

Trackbacks/Pingbacks


Be Heard: Leave Your Comments on this Topic:

This post was written by:

Damien Hoffman - who has written 922 posts on Wall St. Cheat Sheet.


Contact the author







Share Your Thoughts

How will stocks perform from now until Thanksgiving?

View Results

Loading ... Loading ...