Should Rediff (REDF) be up $5 because I said last night on "Mad Money" that I like it? Of course not; no one is that good, certainly not me. And this isn't false modesty. I have made a study of everyone, and no one is that good.
This is a stock, though, that was depressed. It was a coiled spring and went from being bad technically -- so people were short it -- to being good technically because it hit some level after I mentioned it on "Mad Money" last night. Would I sell it? If I owned it Tuesday at $15 and I didn't sell, I would be violating
my bulls-bears-pigs rule, as I spelled out in
Jim Cramer's Real Money: Sane Investing in an Insane World
Of course, if you believe everything I say about Rediff being the Indian
-- and there is no reason not to believe that, given its standing in the country -- you could argue that it would get to $20 eventually. But what I think is appalling to some professionals is how it got there in one day.
To that I say, that's a problem with brokers and electronic brokers. 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! I believe 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 took this one up.
I could see how anyone -- Doug Kass, are you listening? -- would say this is "irrational exuberance." I could also see, however, that there's something wrong with the mechanics of the market that allows people to play up such limits.
And nothing more than that.
Oh, and remember, there's something to be said about the power of these big markets for the Net. After all, Google said, "Sorry, pal," to the U.S. Justice Department on porn, but acceded to every wish of the Chinese government on censorship!
Copper, lead and zinc all are in bull-market mode. That's
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Rediff to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
At the time of publication, Cramer was long Anglo American and BHP Billiton.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, 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
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