Wednesday and late yesterday, Jim Cramer responded to a new batch of questions posed by members of the Stockpickr community.
Anybody can ask, respond or comment at Stockpickr Answers; the top responders get ranked in our "Top Analysts" section.
Here are a few of the questions to which Cramer has recently responded:
- What are the signs that you may be a Stockpicker?
- I'm a college student new to investing. I have made some mad money buying good stocks. Now I'm looking to sell stocks on gains and then buy back on dips, simple stock trading. My question is:
How do I go about setting a price target for a particular stock?
Does it differ from stock to stock or is the average rule of thumb if up 20% then sell?
- Why does AIG (AIG) - Get Report get a higher multiple than Travelers (TRV) - Get Report, and do you see AIG outgrowing TRV going forward? Travelers' market cap is one-sixth the size of AIG's, and Travelers has outperformed AIG over three months, six months, one year, two years and five years. Plus, Travelers' dividend is almost twice AIG's.
I know you like AIG, so do I, but why not Travelers?
- Last Friday you mentioned Oracle (ORCL) - Get Report as one of your growth stocks.
What changes do you see in the company that makes you more positive on this stock?
- Do you think Goldman Sachs (GS) - Get Report needs a stock split to really move higher? I think smaller investors are really scared off by the $200-plus price of the stock even though it's cheap at 10 times earnings.
- I saw your prediction of 14,548 for the Dow. Is it just a coincidence that 14548 is the zip code of Shortsville, N.Y.?
Seriously, it is; Google "14548" -- perhaps a bit of literary foreshadowing?
- I took Jim Cramer's comments on Stop Trading! to mean he's endorsing buying more Intel (INTC) - Get Report now and not waiting. I like buying the underlying tech so that whichever end user company -- Dell (DELL) - Get Report, Hewlett-Packard (HPQ) - Get Report, etc. -- takes off, I'm getting a piece of the action.
(Editor's note: Cramer owns AIG, Goldman Sachs, Hewlett-Packard and NYSE Euronext for his Action Alerts PLUS charitable trust.)
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