On January 25th I wrote a blog entry called “2006â€™s Biggest Cramer Crackle!” I was referring to Rediff.com (REDF). It jumped up 29% in price on the next opening day. I was actually assuming that the thing would settle back down. Glad I didn’t predict that it would because it actually is UP 60.2% FROM THAT OPENING PRICE. The other stock mentioned that day Danone (DA) is also up 6.8% from its next day’s opening price.
There were other large Cramer Crackle stocks since January 25th:
Sirenza Microdevice (SMDI) Cramer Crackle: 20.4%
Omnova Solutions (OMN) Cramer Crackle: 33%
NMT Medical (NMTI) Cramer Crackle: 21.6%
Acadia Pharmaceutical (ACAD) Cramer Crackle: 26%
Pan American Silver (PAAS) Cramer Crackle: 6.2%
Bookham Inc (BKHM) Cramer Crackle: 22%
LifeCell Corporation (LIFC) Cramer Crackle: 11.6%
Hexcell Corporation (HXL) Cramer Crackle: 10.1%
Jim Cramer talked about this effect on his Real Money radio show on Monday 6 February. He said that you should never pay more than 25 cents than the previous closing price.
That’s pretty good advice for the following stocks that FELL after their Cramer Crackle prices:
(as of closing Wednesday 8 Feb)
Pan American Silver: -5%
See! You don’t always want to buy them the next morning.
Here’s some winners (Percentages post-Cramer Crackle as of 8 Feb):
NMT Medical: 2.0%