Jim Cramer, the host of Mad Money, recently revisited one of his core investment principles: “Nobody ever made a dime panicking.” He emphasized that, no matter how many times he has shared this advice, it always feels as crucial as the first time. Observing the current turmoil in tech stocks, Cramer pointed out that panic selling leads to missing out on the recovery that often follows. Specifically, he noted how those who sold their tech holdings this week missed the subsequent surge in tech stocks that delivered strong returns.
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Cramer explained that the panic was so widespread that it even affected the stocks of companies that were benefiting from the tech boom. He observed that even when good news was on the horizon, fear caused investors to make rushed decisions. He then discussed how a Chinese company recently announced a new innovation suggesting that fewer NVDA chips are needed for artificial intelligence applications.
“The companies that are doing well might even do better if DeepSeek’s formula for success spreads, bunch of knuckleheads.”
While Cramer acknowledged that this new technology, such as DeepSeek’s offering, posed a potential threat to NVDA, he quickly said, “The way I see it, that’s nonsense.” However, Cramer was particularly critical of how the market reacted to this news. He pointed out that the panic was so intense that even companies benefiting from the tech sector’s growth were dragged down.
“Here’s the bottom line: The shoot first ask-questions-later approach works when there’s fraud or chicanery and we know we must sell but when things are complicated or murky, it might not make sense to help create the biggest single-day dollar loss in history, chums. There’s a better way. Just don’t do anything. If you really wanna sell, you can do it into the rebound the next day. In my experience, after one more dip in the morning, you almost always get a better price.”
Jim Cramer’s Thoughts on These 7 Stocks
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on January 28 and 30. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer’s Thoughts on These 7 Stocks
7. RadNet, Inc. (NASDAQ:RDNT)
Number of Hedge Fund Holders: 20
A caller noted the dip in RadNet, Inc. (NASDAQ:RDNT) stock and asked if they should take advantage of it. Here’s what Cramer said:
“Well, I’d like to see some sort of, I mean, the stock did bounce $2 today… It’s a very expensive stock. I’ve been, I’m trying to sell… GE HealthCare if I can just because I kind of just feel this group is just not strong enough, that includes this one. Let’s give it a pause for a second. Let’s see if it can’t bottom for more than just one particular day. But I understand it was a great stock for a long time. I need to see a real bottom.”
RadNet (NASDAQ:RDNT) provides outpatient diagnostic imaging services and develops advanced imaging technologies, including AI solutions to improve radiology interpretations and support cancer screening. Cramer has called RDNT stock expensive before in 2023 as he said:
“We opined positively about RadNet before, diagnostic company, and I think it’s too expensive versus GE Healthcare, which we own for the trust…it sells at 21 times earnings, and is much more connected with what Biogen and Eli Lilly are doing when it comes to Alzheimer’s and dementia.”
6. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 40
Cramer explained that Cleveland-Cliffs Inc.’s (NYSE:CLF) difficulties stem from Chinese steel dumping, but noted that the issue will be resolved through tariffs that will be actively enforced.
“Look, I think Cleveland-Cliffs is so cheap now when you get the tariffs. The only reason they’ve really been crushed is because of all that Chinese dumping and that’s going to end with the tariffs because that’s what they’re going to really police. I like Cliffs. Of course, I think Nucor is a better stock.”
Cleveland-Cliffs Inc. (NYSE:CLF) is a manufacturer of flat-rolled steel, offering a variety of steel products. Early January, when a caller asked Cramer about the company, he said:
“Well, I know I was, I was into the company today, trying to get them to come on tonight’s show. Now here’s the problem: Honestly, the steel stocks are the worst stocks in the market and I think that you could buy this stock and if you’re willing to take a point or two down, then I think it’s okay but you have to accept the fact that that’s exactly what could occur.”