An Analysis of Jim Cramer’s CANDIES
Gold Digger submits:
Since quite a few retail investors watch CNBC and particularly Jim Cramer because his theatrics make his opinions more fun to watch, and perhaps more credible too. In the past few days he mentioned a fun word, Candies (basically it’s an acronym for Chipotle (CMG), Apple (AAPL), Netflix (NFLX), Deckers (DECK), Intuitive Surgical (ISRG), Express Scripts (ESRX) and Salesforce (CRM)). These are all growth stocks that have given some good returns until now. So I thought it would be a good idea to put these stocks into some perspective for investors and followers.
Growth stocks are good because they provide good returns as the underlying company is in the growth phase and its earnings are increasing at a fast pace. As analysts align their expectations with real earnings, these stocks tend to go up. However, investors should keep in mind that growth stocks are much more volatile too and any one event can totally wipe out gains in these stocks. The risk is even higher for those investors who try to play the catch up role and missed the initial up moves. Also, these stocks are highly dependent on the economy and consumer buying power.
