Skip to main content

'RealMoney' Radio Recap: Rediff Restraint

Cramer says the stock's quick run-up indicates a lack of trader discipline.




, the biggest Internet play in India, be up $5 just because Jim Cramer featured the stock on his

Mad Money

television show? That's the question Cramer posed to his

"RealMoney" radio show listeners Wednesday.

"No one is that good, certainly not me," Cramer said, adding that he isn't just being modest.

The stock would have gone up anyway because it had taken a hit on an interest rate hike in India, and it was "a coiled spring" waiting to move higher, he added.

Cramer said he is "chastened" by this, and that if he owned the stock at $15 on Tuesday and it's up $5 now, then he would have to sell the stock or violate one of his most important rules: Bulls make money. Bears make money. Hogs get slaughtered.

If listeners believe what he believes, that Rediff is the Indian


(GOOG) - Get Alphabet Inc. Class C Report

, there is no reason not to believe that it would have hit $20 eventually. But he said that what is "appalling" is that it got there in just one day.

This points to a problem with brokers and electronic brokers, he said.

"As a broker at Goldman Sachs, I simply wouldn't let anyone buy a stock that was up $4 or $5 unless it was a $100 stock -- even if I wanted the commission and it was the end of the month and I needed to make my numbers," he said.

TheStreet Recommends

He believes that a combination of brokers who won't put limits on their customers and customers who trade online without enough discipline to do the job pushed Rediff up so much.

Image placeholder title

It's not "irrational exuberance," he said, but rather the fact that people do not understand how to use limits.

"You must use discipline," he told listeners. "You must not get carried away ... and say that you'll buy Rediff at any price."

He added that the power of the Indian Internet market cannot be underestimated. As an example, Cramer cited Google, which just told the U.S. Justice Department that it wouldn't allow it to monitor Web searches to fight pornography.

But the company told China, the only Internet market larger than India, that it would accede to its every wish to help it censor political ideas, Cramer said.

Am I Diversified?

Cramer took calls from listeners who wanted to know if their portfolios are diversified. The strategy does limit some of the upside, he said, but it shields investors from harsh risks, too.

Cramer said that every listener who called in had a diversified portfolio, and he was pleased with the stocks that in the portfolio, too.

One caller owned




American Express

(AXP) - Get American Express Company Report






(ECA) - Get Encana Corporation Report


Procter & Gamble

(PG) - Get Procter & Gamble Company Report


Cramer called Walgreen, the nation's largest drugstore company, a screaming buy at $42. He said that American Express had a picture-perfect quarter and that he wants to see EnCana pull back a bit before buying more.

He called the next portfolio uniquely diversified. It included diversified manufacturer


(HON) - Get Honeywell International Inc. Report

, which he called too cheap, and

Ultra Petroleum


. He said that Ultra Petroleum just gave good guidance on how much oil it found, but that the guidance wasn't great, so the stock will pull back a bit.

There also was

Building Materials


and retailer

Urban Outfitters

(URBN) - Get Urban Outfitters, Inc. Report

. And finally the portfolio included Google. Cramer said that if the company disappoints the bulls, the stock will likely come down and create a buying opportunity for those who want to pick up some shares.

He said he fundamentally blessed every stock in a portfolio that included tech play



, health-care insurer


(UNH) - Get UnitedHealth Group Incorporated Report


Valero Energy

(VLO) - Get Valero Energy Corporation Report

, an oil refiner, restaurant stock

Papa John's

(PZZA) - Get Papa John's International, Inc. Report


Legg Mason

(LM) - Get Legg Mason, Inc. Report

, a financial company.

Another portfolio included


(CIB) - Get Bancolombia SA Report


Allegheny Technologies

(ATI) - Get Allegheny Technologies Incorporated Report



(ALKS) - Get Alkermes Plc Report


Coldwater Creek



Advanced Micro Devices

(AMD) - Get Advanced Micro Devices, Inc. Report


Cramer said that each and every one of these companies are stocks that he has been bullish on during episodes of his show,

Mad Money


He also liked the companies in a portfolio that had UnitedHealth,

Australia & New Zealand Banking Group



Whole Foods




(CAT) - Get Caterpillar Inc. Report


Matrix Initiatives



401(k) Fix-it

Cramer did some work on a 401(k) that was divided between

(PSLAX) - Get Putnam Small Cap Value A Report

Putnam Small Cap Value Fund at 15% of the portfolio,

(PTTAX) - Get PIMCO Total Return A Report

PIMCO Total Return at 50% and


PIMCO RCM Global Equity fund at 35%.

Cramer said that it was a perfect mix for someone in their 50s or 60s, but he would want more exposure to equities for a younger investor.

He told a caller asking about the Canadian company

Miramar Mining


that he would have's

Stocks Under $10 writers Dave Peltier and Will Gabrielski check out the company before he gave it a recommendation, because he doesn't know enough about it.

Cramer said that


(AAPL) - Get Apple Inc. Report

will eventually see upside from its relationship with


(DIS) - Get Walt Disney Company Report

. However, in the near term the product transition to


(INTC) - Get Intel Corporation Report

is weighing on Apple, and the Disney deal won't offset the effects of the transition.

At the time of publication, Cramer was long Intel, Motorola, Procter & Gamble and UnitedHealth.

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. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."