cramer backing up on the dks call but anybody in the business as long as he has been should know that retailers are problematic in the summer time and you sure dont buy them ahead of earnings in their weakest time of the year.
I was amused by Ken Wolff's decision to enter the fray by buying DSK around $33.70. So now Cramer and Wolff both have egg on their face. He should know its better to buy the dumpers the day after the fall. Guess he doesn't read Gary Smith's stuff.
he had a stop at 33.50 right below the low of the day. seemed like a reasonable play even though he was wrong. Ken Wolff Dick's Sporting Goods Update 8/16/2005 10:03 AM EDT Dick's Sporting Goods (DKS:NYSE) has bottomed around $33.70. I am going long here as I am expecting a nice climb to around $35 to $36, with a stop at $33.50 Long DKS
yes Another good recent example of this danger was Intel (INTC:Nasdaq), which was also a suggested buy in front of earnings. Yes the report was OK but the stock was extended and the market reaction was negative. Correctly anticipating a good report was not enough. If you want to be a media star recommending buys in front of earnings, it's a good way to stir up attention, but if you want to make money, it generally is a poor bet.
Remember that guy who bought YHOO calls right before earnings? Lost 90% of his account overnight - near 5k. After seeing how YHOO DELL DKS WMT and a lot of other stocks behaved after earnings, I'll never play earnings the day before.
Apparently, Cramer's ratings are higher than those of Squawk Box'. NUTS! I'd bet that in the end most people who follow Cramer's advice will lose money.
Well, if they are buying just on Cramer and not doing anything else, then they deserve to get their ass kicked. The guy who lost $5K which was 90% of his money? Oh, yeah, he should definitely be in the market. However, how do you do an option play with a sub-$6,000 account?