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Wednesday, April 05, 2006

April 5th

Cramer's first pick was BW Brush Engineered Materials Inc. It trades on the NYSE so I won't trade it.....but I probably wouldn't anyway since Cramer's other mineral plays have done well in the past.

His second pick was KRY CRYSTALLEX INTL CP. Firstly this trades on the AMEX so I can't trade after hours and secondly its under $5 so I can't short it at all. I certainly wouldn't short gold stock either. A lot like Natural Gas, the price of the commodity changes every second and influences the prices of stocks more then Cramer does I would think. Having said that, I just looked at the after hours numbers....the stock is up 22.6%!!! So it is now over $5 so I could short it during regular hours but won't. Cramer said this stock could double or triple, but I don't think he meant tomorrow. This one will come down I'm sure when people take their big profits.

If he mentions a third one tonight I will post later....but it sounds like he is playing "Am I diversified".

posted by CramerTracker @ 4/05/2006   14 comments

Comments on "April 5th"

 

Anonymous Anonymous said ... (April 05, 2006 6:45 PM) : 

huge short position in this KRY allready (7 million shares with a float of 21 million..) i wouldnt short it tonight or early tommorrow ... to scary.. i like your service you provide here.. keep up the good work...

 

Blogger CramerTracker said ... (April 05, 2006 9:19 PM) : 

Thanks for the post!
I agree it is a risky short for sure. You might be able to skim a few cents on a short but it is too risky. I recall an article from thestreet.com once that posted stocks that could double in the next year or something, and I recall several of the stock did double in a matter of days. With Cramer mentioning double, triple and I think quadruple.....it could a big run....maybe one to go long on.... :)

 

Anonymous Anonymous said ... (April 05, 2006 10:38 PM) : 

May I ask, who is your broker? Because I am tired of reading your posts that say "Can't short NYSE, can't short AMEX, can't short after hours". :-) :-)

I am from Ottawa and my broker is Questrade.com. Have been using it for 4 years. Try it and I bet you will love it. You will be able to trade from 7am to 7pm with a DAT system! The DAT is CharlesSchwab's Cybertrader. :-) And you will be able to short to your heart's content.

Commissions are just 9.95 per trade (if u use INET) irrespective of number of shares.

Gave up on TD 4 years ago. Thank god for Questrade.

 

Blogger CramerTracker said ... (April 05, 2006 10:42 PM) : 

Its very funny that you ask. I am with Ameritradecanada (a fellow Ontarian myself). Since Ameritrade Canada got bought out by TD I am being forced to go to TD which I don't really want because I don't like the fee schedule. And as a matter of fact Questrade was the broker I was looking into but wasn't very impressed with the answer I got to some questions I asked via email, but from what you said it should fill all my needs!

 

Anonymous Anonymous said ... (April 05, 2006 11:02 PM) : 

I am 35 years old and a full time trader. I am addicted to trading :-).

Have used Questrade for the last 4 years without any complains.I seriously recommend that you give Questrade a try.

Their service is excellent. Always prompt and curteous in my experience. Contact Gary Miskin directly regarding your questions.

Gary Miskin
VP Business Dev., Questrade
tel: 416 913 8315
fax: 416 227 0078
www.questrade.com

Steven from Ottawa

 

Blogger CramerTracker said ... (April 05, 2006 11:09 PM) : 

Thanks! I will be looking into Questrade again very soon. I should be clear that the email I got about my questions to them wasn't bad, they just missed a question I had asked and I hadn't gotten around to just calling them directly.

 

Anonymous Anonymous said ... (April 05, 2006 11:25 PM) : 

I apologize if my comments seemed a bit promotional towards Questrade.

4 years ago I was using TD. Back then, they used to charge around 29$ per trade for 1000 shares. Then they had a basic WebBroker application, which was nothing but a simple HTML form, to place a trade. As I was a novice trader back then, I was content with what TD offered me. It was only when I switched to Questrade (at a friend's URGING) that I realized what crappy, horrible service WebBroker was! And the fee schedule was pure daylight robbery.

You get 12 hours trading. From 7am to 7pm. Realtime DAT system with nice tools. Charting tools. Shorting. Options. Margin == 3 times your money. You can withdraw money/profits free via a EFT. Within 3 days the money is transferred from Questrade to your bank.

Excellent service. All done electronically.

Can I ask you how long have you been trading?

Steven

 

Blogger CramerTracker said ... (April 05, 2006 11:40 PM) : 

No apology necessary. I don't mind too much that I can only trade NASDAQ after hours with my broker since it allowed me to focus on fewer picks but it is certainly begining to limit my options. Questrade was really the only option on my list of new brokers and I liked what I had read and I actually called them a while back around the same time I joined with AmeritradeCanada. I have only been investing for a few years now with a few trades thrown in here and there. I've been watching Cramer for the better part of a year now and after getting burned on one long trade I made off his recomendation I decided to look at the short side of things. But this definitely isn't a full-time gig for me but I am young enough to take some risks.

 

Anonymous Anonymous said ... (April 05, 2006 11:42 PM) : 

You can also short stocks under 5$ using Questrade. Thus Questrade gives the trader numerous features/tools. And to the inexperienced trader numerous ways to quickly lose money :-)

Steven

 

Blogger CramerTracker said ... (April 05, 2006 11:58 PM) : 

Having the option to short under $5 would be nice to have. Not something I would want to do to much but a great tool to have. There is a big pump and dump "groups" out there that pick really cheap stocks that would be easy shorts....but thats another story. But you have sold me on Questrade. I notice they have a referal program...I would be more then happy to say you referred me when I transfer :)

 

Anonymous Anonymous said ... (April 06, 2006 12:18 AM) : 

I recommend an alternate shorting strategy. Short weak stocks. Short stocks that have little reason to go up in the *short term*. Now that the earnings season has started, companies will issue warnings/miss earnings. Those that issue warnings will likely drop from 9.45 am to closing time. Try shorting those stocks. Short only 300 shares at 9.45 am and see what happens. Most weak shorts will fall between 2pm to 4pm. Why because brokers will force close margin positions. That forced selling starts at 2pm (Learned this from Cramer's radio show and have observed this to be quite true). What exacerbates the selling is daytraders too bailout at this time.

Observe what happened to PWAV a couple of days ago when they issued a warning.

Avoid shorting at 9.30am. Try shorting at 9.45am.

Be careful shorting stocks under 5$. Who would have thought that all the "bird-flu" herd mentality traders would bid NVAX from 1 to 8 in such a short time.

Time for me to sleep. I wake up every trading day at 6.40 am :-)

Didn't know Questrade had a referral program. If they give me a month of commission free trading that would be great. :-) Let me check tomorrow with their web-site what their referral program entails.

 

Anonymous Anonymous said ... (April 06, 2006 12:27 AM) : 

http://questrade.com/join/refer_friend.html

I looked at the referral and it is 100 bucks maximum. I say forget about it. Hope you begin to like and enjoy Questrade.

 

Blogger CramerTracker said ... (April 06, 2006 12:33 AM) : 

Thanks for your input tonight Steven from Ottawa. Feel free to post anytime!

 

Anonymous Anonymous said ... (April 06, 2006 12:52 AM) : 

Regarding KRY.

1) Too risky to be long. What if Chavez changes his mind at any given moment? Balance sheet is uninspiring.
Market cap = 1 billion and revenues of only 23 million. No earnings. Losing money.

2)Too risky to be short. Cramer has given the momentum players some mojo. He said "company is a takeout candidate". Can potentially trade to 20$ according to his comments.
That is enough mojo to take this 20 million float (with a 7million short) much higher in the short term. Shorts already underwater (stock has had a nice run already) will likely panic.

Safest way to play KRY: Hope the momo players take it much higher in a few weeks and when and if Chavez issues some negative remarks that can hurt KRY that is the time to short. Short when the herd does a exodus on a negative news on an overvalued stock. Always safer that way.

Remember: There are ALWAYS other SAFER shorts than KRY.

Steven/Ottawa

 

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