March 19th, 2009

Cramer and AIPC: A Follow-up

I know it’s not nice to say “toldya so” but I have to. I know I should give it some more time but I just can’t resist.

Last Thursday, Cramer recommended AIPC (American Italian Pasta Co). I was so taken aback by this choice that I had to rant about it in “AIPC? What Was He Thinking?

Five trading days have come and gone. How good was that recommendation?

While all of us are making money in our precious metals, forex, metals and other commodities stocks, those who took Cramer’s advice (or are buying today because he did caution to “wait for a pull back“) would have seen their investment decline by 5.4% while the market as measured by the S&P 500 actually increased by 5.4% – a mirror image, opposite sides of the same coin.

While all of us are trying to make some money following the herd, Cramer looks like he’s doing their bidding by suggesting something to buy that they’ve already made their money on and are now trying to unload.

Will AIPC catch up with the rest of the market or the beginning of a continually expanding divergence? It may be too early to tell but I know I’m going to continue monitoring this. It’s just another example of a successful contra-Cramer trade.

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