Shoulda Woulda Coulda December 31, 2007
This is a follow up to a post I did June 1st 2007 about Jim Cramer. I got interested in following the Mad Money pick for the year when Cramer’s pick for 2006 did very well. For the first show of 2007 Cramer picked 9 stocks which I have attached. I set up the portfolio with ten thousand in each of the nine stocks at the price when Cramer recomended them. MO split off Kraft and when you add up the 10 stocks at year end you have a profit of $16,093.68. or 17.88 percent. Not bad but if you had cherry picked the bad stocks and left out Apple and SVNT you would have lost a lot of money.
Click Pic to enlarge.
Well Cramer did not have any picks for 2008 on the first show of 2008 but he did talk about his picks of 2007. What must really stick in his craw is the fact that he said to switch out of SVNT to BMRN on Sep. 28th. Then SVNT went on to double in value in December. So if you had switched out he said your return would have been about 16% for the group. I have read that too much trading is one of the things that can hurt returns and in this case that was true. Will we have a recession in 2008? What do you think?