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Heinz ( HNZ) used to own Weight Watchers and almost destroyed the company before giving up and spinning it off, Cramer said. Heinz tried to turn the company into a food brand, but it almost killed its core business: the Weight Watchers meetings. People are over fad diets and are willing to lose weight the hard way, and that means that they'll be willing to go to Weight Watchers and learn how to be healthier in a supportive environment, he said. The diet trend isn't going away, so long as Americans continue to get bigger. As for growth, Cramer believes that it could see 20% earnings growth by 2007 as it licenses its brand name. But don't immediately buy the stock after hours or at the open, he warned. If you want to buy the stock, do at least an hour of homework. And if you buy it before it comes down from the spike, "you're just as stupid as Heinz was for giving the darn thing away," Cramer said. He said he would wait until midday, when the people who bought it overnight or at the open throw it out, and then he would not buy all at once. "That's the sin of arrogance." He also said to buy in increments, so you don't end up buying all of your position before a big decline.
It just went public, and no one cares, Cramer said. And that means the stock is cheap. Plus, it is still flying under Wall Street's radar. Only three analysts cover the company and all of them are neutral on the stock. In the "Mad Money Mailbag," a viewer said he got so excited over Cramer's NightHawk Radiology ( NHWK) recommendation that he bought it hastily near its all-time high at $26.75. He added that he has now incurred about a 10% loss. The viewer wanted to know if he should sell and take the loss or buy more of the stock while it's weaker. Cramer said he still likes the stock and believes it will go higher. But he wanted to use the email as a cautionary tale for other viewers. If you buy in after-hours trading or the morning after the show, you won't do well, he said.