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

Smarter Money: When Will Cramer Stop Hammering Fund Managers?

If mutual fund managers would start picking better stocks, I would stop pounding them. But take a look at the most recent letter that Ryan Jacob, manager of the (JAMFX) fund, penned about his most recent buys. Jacob, who has had a huge recovery and is now down only 41% this year, has been snapping up the shares of EXFO Electro-Optical Engineering (EXFO) and Newport (NEWP), in order to complement his Digital Lightwave (DIGL) position.

Talk about being doomed to repeat history. I mean, hello??! Some of you knock me for liking Qwest (Q). What are you saying to Jacob? I mean the companies that buy the equipment made by Jacob's companies are dropping like flies. Any orders that these companies might have are dropping, not picking up. These businesses are doing lousy by their own admission. The remaining companies, like Qwest, will eat these companies' margins for lunch.

I don't think any of these companies can "make the numbers." Yet, Jacob just blithely keeps on buying. I think that the "recovery" Jacobs had from being down much more to being down 41% is simply another great selling opportunity for his fund, just like a bad stock that has bounced. You sell the bounce and move on.

Pretty simple when you think about it.
James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. At the time of publication, Cramer was long Qwest. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to

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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


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%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs