Jim Cramer Blog

We're looking for a, "Big, fat bottom" in the market. The question is how do we spot a bottom? If bad news no longer effects the stock then it has hit a bottom and is due for a run up. Some speculators believe the bottom is in tech, but price to earnings ratio is too high in this sector. The price to earnings ratio is the price per share, divided by earnings per share. Cramer believes WCI Communities (WCI ) will bottom soon.Another trading tip from Cramer, when a high profile employee such as the CEO or CFO leaves the company with no good reason, get out of that stock. This just happened with Digene Corp. (DIGE ). The CEO left unexpectedly. This raised the red flags.If risk outweighs reward, get out of the stock. Cramer believes however, that the biotech sector is a good place to be.

Lightning Round
Bulls:
TRMP
QDEL
FNSR
ESRX
MA EZM
NTGR
COH
Bears:
COGO
GGC

Cramer mentioned Tivo Inc. (TIVO ). He said in order to pick stocks you need to make a list of the pros and cons of the stock. With TIVO, there are only a few good things about it: Analysts are heavily bearish on this stock; great technology; and great CEO. However, TIVO is losing their uniqueness. Every company in this sector has their own form of this technology. Their growth has also been very erratic. He said that this is a dog of an investment however money can still be made off of its volatility. Bottom Line: If you want to be a good investor, seperate the good news from the hype. The news needs to lead to making money, not just publicity.Finally, he mentioned Crystallex (KRY) again as a speculative play. A valuable lesson was learned, speculation is not for the faint of heart and do careful research before investing in KRY.