Cramer: Two Sides of Cult Stocks

Lots of times people just don't understand that it is OK to dislike a company but like the stock. Other times it is OK to think a company's terrific but its stock is horrendously overvalued, and yet still worth buying. This is a debate that is age-old, but is being rekindled -- aggressively rekindled -- now that Herb Greenberg has rejoined the fold.

My logic to this conundrum of when good things happen to bad stocks is simple: I am gaming the life cycle and the process of the "loved" enterprise, not the valuation -- or, more precisely, overvaluation of the stock. I am predicting the mania and harnessing it for profit, and much as Herb Greenberg wants to call this the "Greater Fool Theory," I think that my way can make us all money, which is why I, of course, promptly renamed it the "Smarter Fool Theory."...1462 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.