Cramer: 5 buys as pros puff up portfolios
These stocks should advance over the next 3 months, and active investors can leverage the phenomenon now.
Cramer wants you to leverage a year-end phenomenon in which big winners can do little wrong.
He says the phenomenon happens every year: "Certain stocks, the ones that have put up the best performance, tend to become anointed as winners by the money management industry."
And as anointed stocks, Cramer believes Wall Street will become reluctant to sell these rarefied names. "In fact, pretty much any portfolio manager will buy them into weakness, if only so that they can tell their clients, 'yeah, we own it, we're geniuses,'" he said.
Therefore, Cramer expects these stocks to advance over the next 3 months and he urges active investors to leverage the phenomenon now; and establish new positions ahead of forth-coming buying -- also known as window dressing.
In fact, all week on Mad Money, Cramer intends to examine the best-performing stocks in a host of different sectors and identify winners he thinks will keep on winning due to the mechanics of the money management business.
On Monday he started with consumer names. "These are all stocks I'd load up on into weakness," he said.
Up 226% year to date, Cramer thinks hedge funds will want to hold Netflix (NFLX) if only to not look like 'colossal morons.' "Netflix has revolutionized the way in which we consume media," Cramer said. And with great shows and extensive opportunities overseas, Cramer thinks there's every reason to buy.
Also with gains of 223% year to date, Cramer thinks Best Buy (BBY) is another stock that pros will hold to appease clients. The Mad Money host says it's a classic turnaround story and pros don't want to miss that kind of story, "And with the company cutting expenses and management pruning away unprofitable stores," Cramer sees every reason for pros to buy.
With gains of 107% year to date, Cramer sees a significant catalyst that will make pros want to own Game Stop (GME) shares. "Two new consoles are being launched ahead of the holidays, Sony's Playstation 4 on November 15th, and Microsoft's (MSFT) XBox on November 22nd. "A console launch has been, historically, huge for GameStop," Cramer said. "And coming up there's not only one -- there are two." (Microsoft owns and publishes Top Stocks, an MSN Money site.)
Up 73% year to date, Cramer thinks Trip Advisor (TRIP) will fall into favor with hedge funds looking to hold growth. "However, there's word that the end of summer was bumpier than expected," Cramer noted, so that could temper early buying. Nonetheless I think it has lots of room to grow and though it's not cheap it's not too expensive for a high quality name."
The Washington Post Company
Climbing 58% year to date, Cramer sees pros wanting to hold The Washington Post Company (WPO) to demonstrate market savvy. "The company sold its struggling publishing division, including the flagship Washington Post, to Jeff Bezos, the CEO of Amazon, for $250 million. Now the core of the company is its robust Kaplan test-prep business, along with some cable and broadcasting properties," Cramer said. "Gains here should be far from over."
More from CNBC
"active investors can leverage the phenomenon now."
Leverage THIS! (with all due respect)
Cramer, and everyone at cnbc, are shameless stock manipulators! It's so obvious that it would be funny if it weren't so pathetic. Cramer is the most shameless of them all. When you have an
entire media outlet working with the brokers and people like Carl I-coon to move stocks, isn't that
collusive stock manipulation? Should it not be illegal? I won't hold my breath waiting for the SEC
to do anything about it. Those guys come from places like Goldman Sachs. It's the fox guarding
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