March 9th Pick - OSIS

Cramer's pick on March 9th was OSIS. OSI Systems Inc. The closing price the day Cramer mentioned it was $21.19. After mentioning it, it went to $22.70, an increase of over 7%. Now I didn't short this one. I was watching it after hours and did a "fake short" at $22.60 of 300 shares. Now I normally look for about a .30 cent drop to set my buy to cover price and the premarket the next morning saw a low of $22.21 and the regular market had a low of $22.06. So on the 300 shares I could have made $90.00 (before commissions) if I stuck to my .30 cent target or as much as $162.00 if I could have hit the low of the day to cover. The high for the day and close was only 22.41 during the regular market. So worst case scenario was a profit of .19 cents x 300 = $57.00 (minus commissions again of course).

By looking at the chart, here is another example where there was an inital drop at the premarket open, followed by a slight increase for the 9:30 market open, and followed again by a fast decline right after the open. My theory is that there are 3 main buying points. People who buy Jim's picks as soon as they come out of his mouth, people who research that night and buy in during the premarket at 8:00am the next morning, and those who don't have access to trade in the after hours and premarket that wait till the market to open at 9:30am. But why do some picks rise at 9:30am and why do some fall? This is one of the many things I am trying to determine and when I figure it out...I will let you know!