Jim Cramer: How to Play a Selloff
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I think anything more than 25x earnings, or $75, you take a pass. Remember, this is how you use a sale not how you let it use you. Plus, when it gets to $75, I wouldn't even put on a full position. Much better to buy half and then wait, say, until it sells at 22x earnings to buy more and then 20x earnings to buy the rest.
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