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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: The Market's Message



But even a seasoned pro like Cramer can make this mistake. One of his charitable trust's biggest blunders was losing its trust in Bed Bath & Beyond (BBBY). Cramer bought the stock in the fall of 2012. He loves going to the store and, more important, he loves the company's regional and national expansion.

Historically, the stock tended to be too expensive for his tastes. When it pulled back to $59 per share from $75 per share in the summer of 2012, it looked cheap enough to buy -- but the stock began rebounding too fast. Cramer, having done his homework, decided to wait for the next selloff to pounce.

The next quarter, Bed Bath & Beyond reported unimpressive numbers. The stock got pounded and Cramer's trust started a position. After the next pullback, the trust bought more.

Every subsequent dip, the trust bought more until it became one of AAP's largest positions. By November, Bed Bath & Beyond was weighing the portfolio's total performance down. Cramer began losing his resolve. He couldn't take the little decline every day. After BBBY finally climbed up to about halfway where the trust had bought it, he decided to take the hit and sell out.

Cramer was elated, a huge weight lifted from his shoulders. Then the company started soaring, and Cramer was too traumatized to buy back in. If he'd stuck with the stock, it would've been one of the biggest gains in the trust's history.

The lesson? If you've done the homework and have conviction about a stock, don't give up on it just because it's going lower and you can't take the pain, Cramer said.

Lightning Round

In the Lightning Round, Cramer was bullish on McKesson (MCK), Plains All American Pipeline (PAA), Cummins (CMI) and New York Times (NYT).

Cramer was bearish on Alpha Natural Resources (ANR) and iRobot (IRBT).

Executive Decision: John McConnell

This is the year that the U.S. economy's going to pick up some speed, Cramer said, so you're going to want to pick up some cyclical smokestack stocks for your portfolio.

3 of 4

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!
DOW 17,162.06 +30.09 0.18%
S&P 500 2,003.15 +4.17 0.21%
NASDAQ 4,562.23 +9.4710 0.21%

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