BizJournals Portfolio
Aug 20 2007 12:00am EDT

Do Ya Boo-Yah? Barron's Measures Cramer

What's the likely outcome when our favorite pathologically contrarian investment weekly takes on our favorite deliriously over-the-top raconteur?

A Barron's cover story that reveals that -- you may want to be seated for this -- Jim Cramer's Mad Money show has a better track record for giving stocks a short-term bump than for picking over-performing stocks.

That probably doesn't surprise you. But Bill Alper applies some relevant math to make sure the story transcends simply poking the rock star for not beating the S&P 500, focusing on the actual impact of the "Cramer Effect."

The "Spike and Fizzle" chart tells it all. The stock jumps the day of and day after the show, and then trudges downward. CNBC says don't buy until a week after the show. Cramer says either short it the day after the show, or buy it the next.

Jack finds such short-term games perilous, but still completely digs Cramer. Though, just as with truffles, Jack finds the smaller the dosage, the greater the appeal.


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