Cramer's Highlight Benefits Insider at 2006-03-09 21:54:05
As you have probably already noticed, when Jim Cramer recommends or highlights a stock on his daily show, the next day, the herd runs in to buy driving prices up.
Appealing to a person's greed is the largest selling point of any business. In this situation however, I want to show you how an insider took advantage of a run up in his company's stock after Cramer highlighted it on his show.
On Friday, March 3rd, Cramer talked about MRV Communications (MRVC)
He said,
" MRV Communications (MRVC) even with the stock dropping from $91 to $3 after the tech bubble burst. With over 70% of MRV's sales coming in Europe Cramer loves the numbers. Estimates are way to low. Gross margins jumped from 0% in the third quarter to 20% in the fourth. MRVC could see 30% sequential sales growth in its optical business in the first quarter of this year also. Momentum is huge here also, starting the year at $2 and up 60% since. Cramer added, "If you get momentum sickness, I think you should avoid this one."
Watch what MRV dirrector Igal Shidlovsky did after these comments.
Blog Source - http://www.johnmugarian.com/index.rdf
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