Cramer told viewers that he's always preached diversification, staying in a mix of stocks to minimize their downside risk. But Cramer said that he also always preaches speculation, picking one stock with huge upside potential to help keep investors engaged in the markets and excited about investing. One of those speculative picks paid off big today, he said, which is why he encourages investors to "stay in the game."That speculative winner was that of Vivus (VVUS), a fledgling drug maker that today received approval for the first weight-loss drug to be approved in over 13 years. The news, a surprise to many, sent shares of Vivus up over 78% today. But was Vivus really a long-shot that no one saw coming? Cramer said that while many on Wall Street viewed Vivus as a loser with plenty of risk, those who did the homework on the company saw a different story. He said with the obesity epidemic in the U.S. growing rapidly, the FDA was under pressure to give doctors something to combat the problem. This was not the case 13 years ago when the last weight loss drug, phen-phen, was approved. Cramer called investing in Vivus a calculated long-shot, not a wild speculation. He said the stock's story should be a lesson to all investors that sometimes betting big pays off big. He said investors need to stay with the tried and true stocks, those like IBM (IBM) and Procter & Gamble (PG), both of which enjoyed small rallies today, but having a speculative stock like Vivus makes investing all the more enjoyable.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV