Editor's note: To provide you with a more comprehensive account of Cramer's remarks from the "Mad Money" episode that aired June 21, we present this excerpt. Click here to read the full Mad Money Recap for that episode.
With a rally like Wednesday's, you've gotta be feeling enthusiastic. It's the kind of day that makes a man aggressive, and I mean that in a good way. I know we've got this whole cultural complex about being polite and restrained, we teach our kids that it's bad to be aggressive, and it's good to do things like share and hold hands.
Well, not on "Mad Money" -- especially the sharing part. Cramer hates sharing, unless it's advice or the proceeds from my charitable trust, which I'm happy to give away. On "Mad Money," we've got a place for aggression. You know why? Because being aggressive, if you do it right, can make you rich.
The market was smoking today. And when the market's
, I need you out there looking for trades. Trades are fun, they keep you interested in the market and if you're bored with your stocks, trust me, you're not getting rich, because you're not going to pay enough attention or work hard enough to get there. But we don't just trade because it's fun, we trade because it makes us fast money, money we can put in our pockets in maybe a couple weeks, or a few months at the longest.
Now let me do my duty to you and give you a trade that could put some money in your pocket. The trade is in
Research In Motion
. You probably know it as the company that makes the Blackberry. This stock started the year around $66, then shot up to $90 in intraday trading in March. Since then, it's been put through the wood chipper like Steve Buscemi in
, and it's back down around $63.90.
The whole tech sector has taken a nasty beating with the ugly stick, although RIM has unquestionably gotten more attention from it than the rest of the sector. RIM's been a bad stock and a mediocre company -- no argument there. They've just had two really bad quarters, partially because of the overhang from that patent lawsuit from NTP that I'm sure you heard about constantly, even though that news could make you no money. Plus,
rolled out the Q, the Blackberry killer. It's just like the Blackberry, it's even got the scroll wheel.
I'm getting into question mode here. I like how it works where I pretend to ask myself the questions you should be asking. Like, "So Cramer, if this stock has disappointed twice in a row, if it's got competition that can really hurt it, if the Cramer tech rally has been left far behind in the past, why the hell are you recommending it?"
Ah, my friends, this isn't an investment -- it's a trade! Of course you don't want to hang on to RIM for a year; the stock is a darned roller coaster. But if you own it for a few months, you could probably make a lot of moolah.
in it. Here's the trade. RIM's newest Blackberry model, the 8700, is currently only available from Cingular because it uses a GSM network -- industry gibberish for "global system for mobile communications." Basically, there are two different standards for mobile phones and Blackberry-like items: GSM and CDMA (that's code division multiple access, not that you really need to know what it stands for to make money off this trade).
This summer, the Blackberry 8700, RIM's newest, flagship product, is coming to CDMA via
. I think that when this rolls out in the Verizon store, you're going to see some serious sales, because we may be entering our first Blackberry replacement cycle.
But isn't this common knowledge? I mean, doesn't everybody know that the newest Blackberry is coming out in Verizon stores this summer? Shouldn't that info already be in the stock price?
You'd think the market would be smart like that, but you'd be wrong. Now, write this line down:
At the heart of every good trade is something really dumb.
Everybody hates RIM now. There's so much negativity, the stock won't get prodded up until it actually starts having some positive earnings news. It reports on the 29th. Now, it's really risky to buy a stock ahead of a quarter betting that it'll go well, but if I were a gambling man, and let me tell you, I'm the furthest thing from a gambling man, I'd bet that RIM reports a better than expected quarter. That should rouse the stock from its decline; it'll prime the market for the release of the Blackberry 8700 in Verizon stores and the new sales that'll generate.
Then and only then, the stock will get taken back up, and up far. People will tell you that RIM finally has it back together, that it's turned itself around, that it's a stock you absolutely must own.
As soon as that starts happening, you sell. That's the top. This stock is a roller coaster, and it'll keep being one.
Bottom line: RIM can't go much lower at this point because everybody who could possibly hate it already does. When the 8700 model starts appearing in Verizon stores, the stock will take off and start getting good buzz. That's when you sell. And if you have nerves of steel, you can buy the stock ahead of the quarter on the 29th, but please, do your homework first, only use limit orders and
never buy after hours
At the time of publication, Cramer had no positions in the stocks mentioned.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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