Editor's note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.


Is Sharper Image (SHRP) a broken stock or a broken company?

-- Waylon from Texas

James J. Cramer: I'd say the latter, because this very small-cap company's success historically has been based primarily on retail fads. At one point, Sharper benefited from Razor scooter sales, and then it surged because of demand for its air purifiers. Most recently, the retailer tried to ride the coattails of the iPod craze.

That said, the company finally has met its match and has warned of lower growth for several straight quarters.

It is difficult, if not impossible to carve out a niche in the retail business when you are selling commodity products.


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. Learn how to become a better investor.

If you liked this article you might like

Qualcomm Nets Wireless Licenses in India

Qualcomm Nets Wireless Licenses in India

SEC Probes Other Deals: Report

SEC Probes Other Deals: Report

Cramer's 'Mad Money' Follow-Up: April 15

Cramer's 'Mad Money' Follow-Up: April 15

Cramer's 'Mad Money' Follow-Up: April 14

Cramer's 'Mad Money' Follow-Up: April 14

Cramer's 'Mad Money' Follow-Up: March 25

Cramer's 'Mad Money' Follow-Up: March 25