In Friday's special
"RealMoney" radio show dedicated to answering his listeners' questions, Jim Cramer said he can tell the difference between a genuine conference call and one in which management is snowing him by first looking at the question-and-answer section.
quarterly conference call as an example, Cramer said that if people read the body of the call's transcript, they would believe the company is doing great. But then the Q&A started, and it was a nightmare, he said.
The second thing he looks for is the guidance, he said. Little to no guidance makes him skeptical, while a lot of guidance is a good thing and provides visibility, he said.
Cramer said he also looks for management confidence and company buybacks, including the price the company paid for the buyback.
Another thing to look for is if the buyback has retriggered the company's earnings.
has systematically bought back stock and managed to raise its bar, Cramer said
"That shows false growth, so be careful," he warned.
"I also like to hear about what pace of acceleration or deceleration the revenues are at," he said. "Accelerated growth is fantastic."
Answering his next question, Cramer said the changes in technology have not changed the market significantly, other than allowing people to buy and sell much more cheaply and read a lot more about companies.
, which Cramer founded, allows you to read this information, he said.
When a mailer asked what the most satisfying part of market is, he said the market is not a game of culture or helping people, but of making money.
"It's not satisfying when you lose a lot, and it is when you make a lot," he said. "It's a bad day when you lose money and a good day when you make some."
While he did get some satisfaction from writing checks to charities, Cramer said it wasn't much more satisfying that that.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
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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