This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'RealMoney' Radio Recap: The Frist Philosophy

U.S. Sen. Bill Frist should be given a Congressional Medal of Investing for being a smart investor, said Jim Cramer on his "RealMoney" radio show Monday.

Cramer said Frist, whose sales of HCA (HCA) are the subject of a probe by the Securities and Exchange Commission, likely did not trade on information received from management prior to his selling of the stock because if he had, said Cramer, he likely would have been buying. HCA management and Wall Street were overwhelmingly positive at the time of Frist's stock sales, said Cramer. Yet Frist sold anyway, which proved to be smart.

There are lessons to be learned from Frist, said Cramer. First, be skeptical when management and/or Wall Street are enthusiastically positive, said Cramer. Second, don't be a pig -- take profits when a stock is up huge. Third, understand the importance of sector trends. Despite HCA management's and Wall Street's bullishness, hospital trends were weakening at the time of Frist's sales, said Cramer.

So, give Frist the benefit of the doubt, he said. Frist was smart to sell, or at worst, lucky. But, he's most likely not guilty of insider trading because if he had listened to management, he would have been buying, not selling.

Stealing Stocks

Lenny "Nails" Dykstra joined Cramer to talk about Wachovia (WB) and Metso Oyj (MX). Dykstra said Wachovia, despite being near a 52-week low, reported a "blowout number" Monday and reported no signs of credit deterioration. Cramer is concerned about what might get the stock moving but said he liked Wachovia's 4.25% yield.

Of Metso, Dykstra said he liked the Helsinki-based engineering firm because it is expected to be very profitable over the next two years and has exposure to the paper, mineral, civil engineering and energy industries - all businesses that aren't going away, said Dykstra. Cramer said the break-up value of Metso appeared large.

"Both ideas...resonate for this market," said Cramer.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs