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's 'Mad Money' Recap: Lost in the Rotation

Cramer's Playbook

For the next installment of "Cramer's Playbook," Cramer answered a handful of questions on how investors should get started with investing.

Cramer said that ideally investors should have between five and 10 stocks in a well-diversified portfolio. But, he noted, investing takes time, especially to do the homework and listen to the quarterly conference calls. Investors without the time or inclination should stick with an S&P 500 index fund.

For investors with the time and at least $10,000 to start, Cramer suggested a portfolio where no more than 20% is invested in any given sector.

Cramer's sample portfolio included EOG Resources (EOG) for domestic oil and gas; Google (GOOG), a stock Cramer owns for his charitable trust, Action Alerts PLUS, for technology; Johnson Controls (JCI), another AAP holding, for industrials; Costco (COST) for retail and Merck (MRK) or Gilead Sciences (GILD) for health care exposure.

Must Read: Jim Cramer's 'Mad Money' Recap: How to Value a Stock

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on a stock he hasn't mentioned in years: VeriFone (PAY - Get Report).

Cramer said that after stumbling for many years, this quarter the payment processor signaled that it's back in the saddle by delivering fantastic results with accelerating growth. Shares of Verifone shot up 11% on the news.

In addition to having powerful global trends in its favor, Cramer said that VeriFone is also an attractive takeover target. He said eBay (EBAY) could be one possible suitor, as activists are pushing the online retailer to spin off its PayPal unit, which would blend nicely with VeriFone's bricks and mortar dominance.

Cramer said that Starbucks would also be a good fit for VeriFone, as the coffee and tea chain is already big into mobile payments.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had positions in GOOG and JCI.
3 of 3

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
DOW $51.61 -2.00%
EXXI $0.09 -13.93%
PAY $27.92 -1.60%
AAPL $93.89 0.27%
FB $117.85 -0.61%


Chart of I:DJI
DOW 17,698.80 -192.36 -1.08%
S&P 500 2,058.67 -22.76 -1.09%
NASDAQ 4,759.78 -57.8140 -1.20%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs