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It's hard to confuse Jim Cramer when it comes to Wall Street, but he told his

"RealMoney" radio show listeners on Friday that recent stock market action has him stumped, because people are buying stocks that are up huge.

"Every morning, the market opens nicely and comes crashing down," he said, and that means someone is taking a beating.

There are markets when you literally have to buy the opening every day because the early trading is always bad, he said, using the 1990s as an example. That's when the Japanese were constantly dumping U.S. stocks as the country struggled with what Cramer called "the greatest bear market of all time."

Europe was also weak at the time because of Russia, he said, so every day it made sense to put money to work at the open.

Moreover, he said, there are openings that are mixed and investors pick and choose.

But this stock market "does not reward you for buying stocks up in the morning," Cramer said.

"You've got to fade this market, which means you've got to bet against it (in the morning)," he said.

In addition to accepting opening prices, investors are also using market orders instead of limit orders.

So, what do you do if you do fall in love with a stock? Curb that instinct to buy at the open, Cramer said. He said he would wait until 10 a.m. ET before taking any action, and then he would only buy one-quarter of the order he wants.

Image placeholder title

You want 200 shares of


( MOT)? Cramer said he'd buy 50 to preserve his capital.

Almost every day, Cramer said, he sees opportunities to buy stocks at a discount because sloppy sellers come in and unload companies they should hold on to.

"They are all stocks I would buy, and there happens to be someone leaning on them now, really beating them down," he said. "That's your opportunity."

TheStreet Recommends

Among this group, he named


(BA) - Get Boeing Company Report



( DNA),


( AOC),


(FDX) - Get FedEx Corporation Report



(MSFT) - Get Microsoft Corporation Report



(GOOG) - Get Alphabet Inc. Class C Report


Panera Bread



Lightning Round

Cramer was bullish on:

First Marblehead




(AN) - Get AutoNation, Inc. Report






(SBUX) - Get Starbucks Corporation Report



(AX) - Get Axos Financial, Inc. Report


Southern Copper

( PCU).

Cramer was bearish on


(ICE) - Get Intercontinental Exchange, Inc. Report



( NTMD).

Cramer Unstumped

Cramer welcomed Dave Peltier, a co-author of's

Stocks Under $10 newsletter, who said that the stocks that stumped Cramer on

Thursday's radio show are in the doghouse.

For starters,


( HYTM) is a sizable company, but it only makes about $1 million a year in revenue as it burns through about $30 million a year, Peltier said.

More importantly, the company's alcohol and drug addiction treatment is licensed, but has not received FDA approval and it's not certain that the treatment works.

Hythiam was formed in a reverse merger, created from a trucking firm called Alaska Freightways -- another bad sign, he said.

As for


( GTF), Peltier said it's another company that needs to raise some capital since it pulls in $1 million a year in revenue but spends $10 million a year.

The company makes a topical ointment for wounds that won't heal and is filing for FDA approval for its use in diabetic foot ulcers. That didn't sound like that big of a market to Peltier, but he said that approval would allow the company to materially grow its business. The caveat is that FDA approval usually takes about a year.

Cramer put Peltier on the spot about a company that the

Stocks Under $10

gang has recommended in defiance of many analysts:

American Italian Pasta



Peltier acknowledged that the stock has a lot of risks. The company hasn't put out financials for a couple of quarters now, but he said it could be only a few months before it turns its business around.

Google Greed

Cramer also offered some guidance on Google, which received a $600 price target from a Piper Jaffray analyst.

Once it goes above $500, he said, it's time to take some money off the table "because bulls make money, bears make money and pigs get slaughtered."

He then took some time to answer a 401(k) question. A listener remembered that Cramer had recommended buying

Gilead Sciences

(GILD) - Get Gilead Sciences, Inc. Report

because the biotech was a part of the Fidelity Contrafund's holdings. He wanted to know if Cramer thought it would be a good idea to play a single stock in his retirement portfolio or if he should buy the fund itself.

Cramer said that mad money should be used for trading, and that includes buying Gilead as a trade. He agreed with the listener that it's best to have a professional manage his retirement stream.

Another caller said he wants to get more aggressive. Cramer's reply was that if he had a base amount of money to work with and if his retirement was set -- basically if he's in a position where he can afford to lose money -- then it would be okay to be a concentrated investor.

But if those bases are not covered, Cramer said, then there's too much risk and diversification is the way to go.

Cramer said he would stay away from

Raser Technologies

( RZ), but that he would stick with drilling company




Reiterating his view that offshore drilling companies will be some of the top performers of 2006, he said he would own


(SLB) - Get Schlumberger NV Report



(NBR) - Get Nabors Industries Ltd. Report


Smith International

( SII) and


(NE) - Get Noble Corporation Report


And for coal plays, he said he would rather have

Peabody Energy

(BTU) - Get Peabody Energy Corporation Report


Fording Canadian Coal Trust

( FDG).

At the time of publication, Cramer was long Boeing, Motorola, Microsoft and Sears.

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."