This Day On The Street
Continue to site right-arrow
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

Lots of people mentioned stocks that just don't get talked about, yet which have been remarkable in their consistency: Express Scripts ESRX, AmerisourceBergen (ABC) and McKesson (MCK), three health care-cost-containment plays that many people are picking as big winners off of the Affordable Care Act. Some people asked that I do segments on these for Mad Money because they want more knowledge.

Lots of people wanted to know if Yahoo! (YHOO) could keep going higher, and how much of the gain has been from Alibaba, and how much has been from actions taken by CEO Marisa Meyer. Instead of answering, I asked what they thought -- and they all, to a person, said it was because of the burgeoning Alibaba stake and that the rally could therefore continue.

Many wanted to know if Google (GOOG) could go higher and whether Apple's (AAPL) better or worse than Google. You don't have much time to answer the question before the line starts surging, but I plaintively say these names are different: Apple is a value play, and Google is a momentum story, albeit one of the cheapest of that ilk out there. No one complained or tried to change my mind.

Finally, many own Celgene (CELG) or Gilead (GILD), two stocks that I have been behind for many years, which some describe as "core holdings." Again, so much for retail investors not knowing how the professional game is played: Both of these stocks have been winners without super-high valuations. Many, of course, said they wanted to find the next Intercept Pharma (ICPT), the stock that rallied 400 points last week. Sorry, I don't have one, I answered.

Sure, there were plenty who asked if Rite Aid (RAD) and Sprint (S) were "still good." I responded that Rite Aid could just keep powering higher as part of a strong trio that includes CVS (CVS) and Walgreen (WAG). Sprint, I think, is way overbought for the short term. But, with the help of Softbank, I think the combination of bountiful spectrum and deep pockets will mean there could be a longer-term triumph.

Sure, the group might be self-selective, as I am sure the turnout will be Wednesday night at the 92nd Street Y in Manhattan, where Stephanie Link and I will spar after that night's Mad Money. There were, indeed, a lot of "booyahs" to start each interchange. But I think the signings, touching about 1,000 people, forged a bit of a bridge between the empirical and the anecdotal: The investors want solid stocks that can go up for years -- not days or, alas, minutes, as so many pros seem to crave.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long BAC, GOOG and AAPL.

Editor's Note: This article was originally published at 6 a.m. EST on Real Money on Jan. 13.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

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
  • 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 serious 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

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


DOW 18,184.24 -30.18 -0.17%
S&P 500 2,110.86 +0.12 0.01%
NASDAQ 4,983.5530 -4.3370 -0.09%

Our Tweets

Partners Compare Online Brokers

Top Rated Stocks Top Rated Funds Top Rated ETFs