This Day On The Street
Continue to site
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

Jim Cramer: New Insight Into Retail Investors

NEW YORK (Real Money) -- When you sign books for people, you learn an awful lot about what the public is banking on and what stocks they care about. The results are surprising to me, and the theses much more considered than what you would expect. You don't get a lot of questions, say, about 3D Systems (DDD) or Stratysis (SSYS), the super red-hot 3-D printer names. People aren't all that focused on Tesla (TSLA), or Solar City (SCTY) or even Twitter (TWTR), three huge cult stocks

The term "cult stocks," by the way, isn't meant to be nearly as scornful as so many people on Twitter take it. We have a simple truth that some stocks can't be valued by any metric, so what are we supposed to call them? "The New Blue Chips?" Or how about "The Wild Ones?" I used to call them the "Red Hots," and maybe I should return to that appellation. There's nothing wrong with flagging the oddity of stocks that are selling on buzz alone, and not on any ratio -- to sales, or to earnings, or anything else. That's the legacy of 1999 and 2000, and it can't be forgotten.

So what stocks are people asking about the most? The No. 1 name was Bank of America (BAC), a very conservative choice if there ever were one. What do people like about it? Here's a typical comment -- by a man who bought Get Rich Carefully at Costco (COST) on Long Island: "Doesn't this one have to catch up with the other banks?" I sat back and said, "Totally. It is still way behind the group." After all, we know this stock is still behind where it was a couple of years ago, even as most bank stocks are well beyond those levels now. This is something that makes the whole group attractive going into earnings, even if the yield curve is not yet ideal.

What did the questioner follow up with? "Can they put through a big dividend?" I said this wouldn't happen immediately, but that is certainly what we are ultimately looking for. Isn't that a remarkably thought-out wish for a retail investor whom Wall Street would typically scorn?

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs