November 3rd - Cheap Trick

Cramer's first segment spoke of "unlearning" what you know about money. He was referring to the fact that people like stocks under $10 because they are "cheap" which isn't always true, and that its the p/e ratio that matters when valuing a stock. He said even though cheap stocks have less room to fall, you can still loose 100% of your investment. He compared Charter Communications Inc. (CHTR) and Comcast Corp. (CMCSA) and although CHTR trades in the $2 range and CMCSA trades at $40, that CMCSA is actually cheaper because it has earnings and CHTR does not. Not to mention CMCSA is just a stronger company. These aren't picks from Cramer and more of an educational segment so no plays here.

Cramer continued his theme of stocks he wouldn't touch with a 10 foot pole even though they are under $10 and look cheap. The next one to stay away from was Gateway Inc. (GTW)
and said it was more expensive than Hewlett-Packard Co. (HPQ) even though they trade at $1.64 and $38.22 respectively when comparing forward looking p/e ratios (since GTW has no current earnings but analysts expect future earnings). Again, nothing to short here on this educational type show. Hopefully this education won't stop people for irrationally bidding up future picks!