Stockcoach's Corner

Down $1,700 today. On yesterday's Mad Money, Cramer recommended GMR (an oil tanker stock). Unlike most people, my biggest beef with Cramer is not that he seems to change his mind all the time (I think that's a good thing.. in the stock market, you need to be dynamic and be willing to change your mind if circumstances warrant). Nor do I have a beef with him because he is often wrong. Again, in the stock market, if you are wrong only 40 percent of the time, that is already an impressive accomplishment.

Rather, my beef with Cramer is that he typically recommends stocks that have already baked in much of the 'good news' that he describes on his show. I know he denies this, but the fact of the matter is that most of the stocks he recommends are up significantly from where they were one year earlier. Not my cup of tea.

GMR, however, is different. The stock is still close to its 52 week low, and the good news that Cramer described (shipping rates for the particular class of tankers that GMR owns are up significantly) does not appear to be baked into the stock price yet. I got a bit lucky with my limit order to buy 700 shares. It filled this morning at $36.12, not far from the day's low. Like RICK, I regard GMR as a trade and not an investment, so I'll be looking to exit this position reasonably soon.