From the Desk of David O. England
Date:
July 13, 2015
Purpose:
Test the quality/profitability/opportunities of published Jim Cramer’s “Buy Right Now” list.
Insert Column link.
Project Methodology--Key Points
1. It is not possible to have a 100% accurate system to track securities. On any given day, overall
performance can vary 10% or even more.
2. I received Cramer’s column late on April 6, 2015. To minimize price bias, I used the closing prices on
the following trading day: April 7, 2015.
3. The first full trading day was April 8, 2015. I decided on a six-month timeframe for my final analysis
(October 8, 2015) with a halfway point analysis (July 8, 2015). These dates were established at the
beginning of the challenge.
4. I used $1,000 per security and (paper traded) purchased full and partial shares. As a trader I know this
is not real world but wanted to use all 1K per security for analysis purposes.
When asked, “Why are you coming out of retirement to challenge Jim Cramer’s Buy Right Now list?”
First, I am a retired Professor of Finance but am far from being retired. I am the founder of Eye on the Market
Training Academy. Please note I am a Financial Educator and not a Financial Planner. My goal is to teach
traders/investors the basics of how markets work to in order to improve their financial decision making.
For close to three decades I have been a student of the market. It is interesting to see many institutions
audited, banks, insurance companies, brokerage houses, etc., When market “Gurus” give their buy lists, their
results are not audited. Since many use these recommendations as buy/sell candidates, where is the
accountability for those giving these buy recommendations. Wouldn’t it be good to have an audit of their
previous recommendations?
Wall Street will always be taken care of with our current system, but no one is looking out for the Investor on
Main Street and why I took on this challenge.
As a trader, investor, and Financial Educator, I have experienced countless experiences where students of all
ages see “Buy Now” lists from Wall Street Insiders. Many jump in head first, purchasing stocks without using
any systems as analysis.
No matter how many times they are warned to do their homework, many under financial duress do not.
Within a short period of time, their securities are down, and I am then asked, “What do I do now?”
Keep in mind that countless Americans and retirees are experiencing decreasing incomes and increasing
expense. Many current and future retirees/employees are concerned if their pensions will survive the next
recession. This leads to increased pressure to make money with trading/investing, and why we are here today.
In my area of the Midwest, many of our small communities continue to experience dire economic conditions
where industry has left.
For Educational Purposes Only Davidoengland.com Eye on the Market Training Academy Impact Agency Inc. 7-2015
The results, in many of our communities, 70-80% of school children are on food assistance-a very sad scenario.
(Source)
If not for these three words from Mr. Cramer, “Buy Right Now,” you or I would not be here today.
My goals:
1. A fair and non-bias accurate performance analysis of Cramer’s “Buy Right Now” list.
2. Compile and distribute the results on a monthly basis until the Challenge completes in October 2015.
3. After the results are compiled, audited, and published, investors and traders will see if there are
profitable advantages/benefits of using a simple system analysis before purchasing.
4. Provide FREE training for this education and analysis system through my newsletter at
davidoengland.com.
5. At any time, one can unsubscribe and discontinue the newsletter.
My thoughts on Jim Cramer:
1. Stock picking has to be one of the toughest occupations ever.
2. I challenge anyone to find anyone who knows more about individual companies than Mr. Cramer.
3. Mr. Cramer is a very hard working American with a work ethic we need more of.
4. This is not a personal attack on Mr. Cramer, but an audit on the performance of his “Buy Right Now”
list.
5. If you command people to “Buy Right Now,” then stand behind your words and your picks.
6. Consider switching the headline from “Buy Right Now’ to “Stocks to Watch”!
My “Gentleman’s Challenge” to Jim Cramer:
1. If after six months (October 8, 2015), more of your stock picks are up than down, I will pay for your
(roundtrip-coach) flight from NYC to Williamson County Airport in Marion IL, personal
accommodations at the Holiday Inn at Carbondale, Il, your dinner at the best (IMO) BBQ house in the
US, 17th BBQ in Murphysboro, IL. In 2007, Bon Appetit named 17th Street the Best Ribs in America.
2. If after six months (October 8, 2015), more of your stock picks are down than up, you pay for my
(roundtrip-coach) flight from NYC to Williamson County Airport in Marion IL to NYC, my personal hotel
accommodations in NYC, and dinner along with my food taster-your choice of restaurant.
3. My “Gentleman’s Challenge” offer is valid for one more month-until August 8, 2015.
Updated on 10/2/2015
Jim Cramer’s “BUY RIGHT NOW” List
Returns Report
Closing Prices as of 7-08-2015*
Total Stocks 49
# of stocks with positive returns 19
# of stocks with negative returns 30
For Educational Purposes Only Davidoengland.com Eye on the Market Training Academy Impact Agency Inc. 7-2015
Best Return PANW Palo Alto Networks, Inc. +50.20%
Worse Return ROST Ross Stores Inc.
-51.21%
Group Breakdown
Total Stocks in Technology Group 9
# of Stocks with positive returns 5
# of Stocks with negative returns 4
Best Return PANW Palo Also Networks Inc. +50.20%
Worse Return CY Cypress Semiconductor -17.21%
Total Stocks in Restaurants & Retail Group 21
# of Stocks with positive returns 5
# of Stocks with negative returns 16
Best Return Darden Restaurants 6.91
Worse Return ROST Ross Stores Inc. -51.21%
Total Stocks in Homebuilder’s Group 3
# of stocks with positive returns 1
# of stocks with negative returns 2
Best Return LEN Lennar Corp. +3.25%
Worse Return DHI DR Horton Inc. -1.71%
Total Stocks in Food & Beverage Group 4
# stocks with positive returns 1
# stocks with negative returns 3
Best Return MDLZ Mondelez Int. 11.92%
Worse Return SJM J.M. Smucker Co. -6.40%
Total Stocks in Recession Proof Group 12
# of Stocks with positive returns 7
Best Return
CI Cigna. Corp.
# of Stocks with negative returns 5
15.83%
Worse Return
CERN Cerner Corp.
-6.41%
*Data from Yahoo Finance using closing prices from 4-7-15 through 7-8-15. During the same time the market
($SPX) return was -1.63%.
For Educational Purposes Only Davidoengland.com Eye on the Market Training Academy Impact Agency Inc. 7-2015