I am a fan of Jim Cramer’s Mad Money. And apparently a lot of people are. After his 60 Minutes introduction to the world this weekend… there were millions of people watching him last night.
Well, the story goes that Jim changed his mind on a stock, a stock I own. In his commentary he told people… "AMD has overtaken Intel as the best in breed for semiconductors. Buy AMD." Apparently, a lot of people listened. Today Intel fell 29 cents a share while AMD went up 50 cents a share.
Need another example? He ended his show with a hot tip. He suggested people buy a small no name company called, Capstone Turbine. The company had just inked a deal with Wal*Mart to put in their new super earth friendly power generator that Wal*Mart may or may not put in every store… his advice… BUY BUY BUY!
Well, Capstone typically sells about 1-3 millions shares per day at between $1.50-$3.00. Well, let’s say I invested $5000 in Capstone this morning when the markets opened and sold it shortly before the close… your investment would have been worth $6786.78… a gain of 26% in a single day. That’s the power of media right there.
You think there will be more Mad Money fans after that? Sadly, probably not. People aren’t that bright when it comes to their money.