Who is Jim Cramer?

Today Jim Cramer recommended selling BJ Services (BJS), saying the stock is good, but he doesn't like it, and people would do well to book profit and get out of it.

Well, I do have BJS, so I thought what the heck.

I did a search on the Internet for "Jim Cramer BJS" to get the story again, and the 4th link caught my attention: http://seekingalpha.com/cramer/on/bjs

This link leads to this page: http://seekingalpha.com/article/15862

Cramer was bullish and bearish on some stocks in Mad Money on 22nd Aug 2006. I thought I'd rather look closely on Cramer's calls. Here's some analysis:

S&P moved from 1298 to 1455. That is a gain of 12.09%. Good. Now see what Cramer recommended, and what happened to them.



The results are in. Cramer, over a 6 month period of time (Aug 22 2006 to Feb 14, 2007) managed winning picks only 9 out of 14 times, an accuracy of 64.28% only. And if you consider that many of his picks rose less than S&P500, his actual gain over S&P500 was a shameful 5 out of 14 times, i.e. 35.71%.

Look at it this way. If you invested $100 in each of the 14 stocks based on Cramer's recommendations on Aug 22, this investment of $1400 would be worth just $1434.13 (Aren't you glad at least you didn't LOSE money?). You would have lost in 5 of the 14 picks. And an average guy picking all the stocks of S&P500 index blindly, would have turned his investment of $1400 into $1569.26.

Go figure. Booyah !