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Monday, September 25, 2006

Cramer's MAD MONEY (September 25, 2006)...Buy TWX Again!!!!

Tonight on Cramer's MAD MONEY, Cramer discussed some lessons of what NOT to do and on how to get behind the best break-up story.

Cramer gave lessons to avoid blowing up like an Amaranth hedge fund:
1) individuals-Don't take too much risk.
2) individuals-Cramer says cut margin leverage and don't take on too much debt.
3) individuals-Even if you think you know more about the market, you can't act that way.
4) on money managers-Do you know what a money manager is doing with your money?
5) on money managers-is your manager properly diversified? Sector Funds usually get hit hard at some point and no more than 20% in any one sector.
6) on money managers-Who is your money manager for real? How did you find your money manager? and find out how well he did in bad times.

As far as how to play a great break-up: Cramer discussed Time Warner (TWX) and his call on 8/23. He noted today that two influential analysts from Bernstein and Morgan Stanley both upgraded the name and they are the ones that partially held it back. He said that cannot be coincidental. Cramer is back to calling Time Warner. He said it is a straight shot going to $26.00, and you should get in it if you haven't.

In a call-in Cramer told a woman who sold Berkshire Hathaway (BRK-B) to get back in it because he sees multiple years of good things coming from there.
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