Cramer-style subscription service

[garfangle]

Traders like J. Cramer tout that their style of subscription service to select stocks are worth paying for because they give you a preview of what they are going to buy before they actually do. The rational is that if these experienced guys are willing to buy XYZ stock, then given the circumstances you might also too. And therefore the fees are justified.

However, I assume (I have no insider knowledge) that this type of set-up is misleading. Because although a service provider may be committed to actual buy what he/she epouses, I am sure there is no commitment to buy a set number of shares. Therefore, if a service touts that ABC stock looks like a buy, but the selector gets cold feet, he/she may actually only buy one or a few shares, which to me do not indicate serious commitment in the justification of said fees. The ability to know or generate solid ideas may be a headfake, whether intentional or not (though not necessarily an indicator of misbehavior).

It seems that the selections that are predetermined through this system cannot be accurately be known if they are valuable vis a vi the selector's strength in picking stocks.

N.B. I am not picking on Cramer, just illustrating his type of system because he is famous for it in advertising his service.

 

[YYNOTT]

I read your comments, I see your point, but it is obvious that you have not thoroughly investigated the conviction of Mr. Cramer's positions. I have because I was interested in his results. He does post the SIZE of his trades and they are by no means small. In fact here is an interesting point. Since the beginning of the year Cramer kept telling everyone on his internet webcast to invest in Fleet Boston. Aperiodically I would check the price of Fleet Boston. Then one morning I am riding the train to the Financial District of Downtown Chicago when the announcement comes on about the MERGER between Fleet Boston and BOA. The stock Gapped UP like 8-9 pts that morning. Serious cash could have been made. I will tell you that I have researched several other calls Cramer has made and I have come to the conclusion that Mr. Cramer has connections in the industry and is obsessed with results as I am. I listen to his opinion because he made money, he is smart money. One day I will be too.

 

[gaj]

don't listen to cramer. his track record of BAD picks is a mile long. his track record of the market going higher and lower in the same day is several miles long.

and if you search on here, you'll find links to past things where he says that you (generic you) are a better investor than he is, but not a better short-term trader (when he's at the hedge fund), because he gets all the good information direct before anyone else does.

he's no longer at the hedge fund, and you'll see, no longer has the good information.

or better yet, look for 'winners of the new world', circa feb 2000.