The floor of the
was in a "frenzy" this morning as the
debuted at a price more than double of what it was expected to open at, Jim Cramer said on his
"RealMoney" radio show Friday.
At first, the Nymex was expected to open in the $50s, then expectations made their way up to the $100s, he said. And it opened at $138.
"If you're not in the game, you're never going to make these types of gains," Cramer said. "If you're in and winning or in a mutual fund, you know the reward can be great."
The Nymex is not "nuts" for opening up so high, he said. In fact, it could be a similar case to when the
New York Stock Exchange
opened very high and then made its way down and stayed down as it made its Euronext bid.
But Cramer doesn't believe that the Nymex will make an acquisition, so people should be free from that risk.
Moreover, anyone who tries to claim that the Nymex is like stocks from the dot-com period is misinformed, he said. The underwriters in the Nymex case knew that demand for the stock was a lot greater and want people to make money off of it.
Cramer said if he wanted to buy 500 shares of Nymex, he would buy 125 shares now, and in a week he'd buy 125 more, regardless of whether it's trading up or down, compared with today.
Then if the stock was above, Cramer said he'd stop buying and be happy with his 250 shares. However, if the Nymex continued to decline, he would keep buying more shares every 10 points the stock went down.
"I believe that the Nymex is priced a little too expensive and, more importantly, the NYSE is priced too cheaply," Cramer said. "The NYSE is worth $250, but now it is at $95."
The Nymex may be 15 or 20 points too high, but not too much more, he said.
gave a "gigantic dividend boost" recently as a sign that business in the future will be better than its business in the past. But Cramer still does not believe this stock is worth owning.
As department stores get their act together and reinvent themselves, these businesses are "alive and well," he said.
Meanwhile, Home Depot has done the opposite. It has made its stores "less appetizing," by cutting back on "knowledgeable help" and bringing in part-timers and by making acquisitions that build up the homebuilding contractor business, Cramer said.
Although Home Depot might have bottomed, there is no reason to own this stock, he said. Six months from now it might move up, but Cramer said he'd rather see people in
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