March 9th - AKAM
Cramer started out with his game plan for next week which I don't really comment on since they are normally news related.
Next Cramer had his final "rubble" pick Akamai Technologies Inc. (AKAM)
Closing Price: $50.41
After Hours High: $ 51.64
Percent Increase at High: 2.44%
After Hours Most Recent Price: $ 51.45
Percent Increase at Most Recent Price: 2.06%
Sector: Technology
Days to Cover: 2.2
Short %: 6.17 %
% Held by Insiders: 8.04 %
% Held by Institutions: 84.30 %
50 Day Moving Average: $53.97
200 Day Moving Average: $45.05
A stock Cramer has done well with in the past and one bouncing off a recent low down at the $47 level (and bouncing off an RSI close to 30 which means it was showing signs of being oversold). With the middle band at $53.22 this has plenty of room to the upside and calling a high for Monday would be difficult from just looking at the chart. I would look to see if the stock opens higher then the AH high from tonight as some recent picks have been doing that followed by the early drop, but the late rally today in the stock is a bit concerning.
posted by CramerTracker @ 3/09/2007
3 comments
Comments on "March 9th - AKAM"
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Unknown said ... (March 10, 2007 12:06 PM) :
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CramerTracker said ... (March 10, 2007 5:45 PM) :
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PENNY STOCK INVESTMENTS said ... (January 20, 2014 1:49 PM) :
post a commentI am a poor college student and am new to trading. I've seen the "Kramer Effect" and have always wanted to try to use it to my advantage. Right now I'm only equipped with a couple thousand dollars and a regular (not elite) Scottrade account. It seems like you have been doing this for some time so I wanted to ask you basically if I'm wasting my time. Do I have enough capital? Do I need a different platform? Is the learning curve too great? Is there still money to be made? I appreciate any advice you could give. Your blog is awesome and has already been an inspiration!
Thanks for the comment. I'm not sure what the difference between the trading platforms that scottrade offers, but as long as you are allowed to short then you are set. A cheap commision is good to have as well so that it won't cut into profits. As for the small capital to invest with I think it may limit your options when it comes to stock price to short. Obviously the higher the price of the stock, the fewer shares you can afford to short and you then need a larger drop in price to make a worthwhile profit (depending on your definition of a worthwhile profit..and thats really up to you). I also say frequently that the higher price stocks don't get the big gains anyway and aren't always worth shorting because the stock might only go up 1% so it has little room to the downside. I don't look at this strategy as a get rich quick type. I look for small gains of a few percent and move on to the next day. This of course is no guaruntee and there is risk involved, so if this capital you are using you can't afford to risk then I suggest caution. The nice thing about this strategy I feel is that the price becomes so inflated that there is only a small chance that the stock will continue to go much higher, thus limiting your loss potential...but again does not eliminate loss potential and there was an example this past week of some stocks that performed very well if you were long...not short. I do try to find "red flags" in Cramer's picks where the stock has a potential to continue to rise because of things like short squeeze potential, momentum, technical analysis tools like the bollinger bands and RSI and general market outlook to name a few. I certainly don't think there is any learning curve to worry about, its just a matter of timing (which is normally right around 9:30am) and the confidence to make the trade. I suggest doing some paper trades and see how it goes from there.
Akam isa unusual stock.