3 Stocks Jim Cramer Is Wrong About

This video is part of our "Motley Fool Conversations" series, in which consumer goods editor/analyst Austin Smith and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

Jim Cramer, the storied investor and host of Mad Money, makes many daily buy or sell recommendationss on stocks. In today's edition, Austin discusses three bullish recommendations that he disagrees with: Siruis XM, Annaly Capital, and Zynga. Much of the disagreement has to do with the difference in investing styles here. Jim Cramer prefers to trade actively, while The Motley Fool supports the tactic of long-term investing. Despite short-term upside potential for these three companies, Austin is worried about what the three- to five-year outlook looks like for them.

Long-term uncertainty should always be a red flag for the Foolish investor. Fortunately, no such flags are waving in our analysis of The Motley Fool's Top Stock for 2012. We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

Austin Smith has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford and Corning. Motley Fool newsletter services recommend Cummins, Ford, Corning, and Westport Innovations. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (8) | Recommend This Article (12)

Comments from our Foolish Readers

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  • Report this Comment On March 27, 2012, at 6:19 PM, southernbeachguy wrote:

    Evidently your not concerned with Long Term investing like you say. I started investing in Sirus 42 months ago and now have gains of 497%. That is Long Term investing and the Sirus Financials have gotten better every month. They will continue to get better. You may disagree with Cramer's strategy, but you shouldn't disagree with his pick of Sirus. They have been solid for 9 straight quarters and now have 21 million paying subscribers.

  • Report this Comment On March 27, 2012, at 7:01 PM, doubting wrote:

    Austin,

    A thoughtful and sensible person does not "worry" but rather looks at facts and projects the future based on reality rather than hallucinations or worrying.

    Why do you all ignore their majesty FACTS? If Sirius could survive these past three years adding subs, if Sirius was able to post 1.7M subs last year, what gives you reason to "worry" about Sirius’s future at a time that it is profitable and can spend money to squash competition, innovate, invest buy back and so and so on. Sirius is not even interested in buying what you call its competition because sees zero value in it.

    If you really want to come across knowledgeable and rationally convincing, present your conclusions on the basis of real facts rather than engage in sheer “worry ” demagoguery. By the way, I “worry” that you will never grow up if you continue ignoring reality substituting it with your "worries". Although who cares, this is strictly up to you.

    In the meantime, we should wait for siri’s earnings call in about four weeks to placate your “worries”. Do not "worry", they will show between 300K and 400K new subs, ARPU exceeding $12, SAC under $60 and EBIDTA over $200M with FCF exceeding $100M. These is data you can touch and argue if I am wrong, my friend!!! Let us be patient for another 28 days or less instead of “”worrying” for nothing. Incidentally, I can always give you free advice on siri. I have been a subscriber and investor for the past eight years of Sirius that is Sirius XM today. I believe that I know inside out the company business, appreciate its business model, familiar with all contracts, programming, etc. After all these years I can bet you any amount of money that siri has only one direction - up and the rest is a background noise created by guys like you.

  • Report this Comment On March 27, 2012, at 7:29 PM, doubting wrote:

    Austin,

    A thoughtful and sensible person does not "worry" but rather looks at facts and projects the future based on reality rather than hallucinations.

    Why do you all ignore their majesty FACTS? If Sirius could survive these past three years adding subs, if Sirius was able to post 1.7M subs last year, what gives you reason to "worry" about Sirius’s future at a time that it is profitable and can spend money to squash competition, innovate, invest buy back and so and so on. Sirius is not even interested in buying what you call its competition because sees zero value in it.

    If you really want to come across knowledgeable and rationally convincing, present your conclusions on the basis of real facts rather than engage in sheer “worry ” demagoguery. By the way, I “worry” that you will never grow up if you continue ignoring reality substituting it with your worries. Although who cares, this is strictly up to you. In the meantime, we should wait for siri’s earnings call in about four weeks to placate your “worries”. Do not worry, they will show between 300K and 400K new subs, ARPU exceeding $12, SAC under $60 and EBIDTA over $200M with FCF exceeding $100M. These is data you can touch and argue if I am wrong, my friend!!! Let us be patient for another 28 days or less instead of “”worrying” without factually supported reasons.

  • Report this Comment On March 27, 2012, at 8:44 PM, biglito wrote:

    Sounds like jim really pissed u off.

  • Report this Comment On March 27, 2012, at 8:56 PM, l8gin1 wrote:

    Many of us are Siri long-term investors.

    May we ask how long you have followed Siri the company ?

  • Report this Comment On March 27, 2012, at 10:21 PM, jdwelch62 wrote:

    While everyone's piling on Austin about Sirius XM, let's change the subject...

    Corning (GLW): Austin is correct, and Cramer is wrong, but you have to have a long term perspective, and Cramer is more of a "trader" than an "investor". GLW is underloved at the moment (P/E of only 8) but its long term future is bright.

    My 2 cents...

    Fool on, Austin!... :-)

  • Report this Comment On March 28, 2012, at 2:14 PM, SpaceVegetable wrote:

    I find it useful to follow both types of investment analysis. The core of my ivestment portfolio is made of investments, however, I also maintain a second, more speculative "trading" portfolio. I'm not a day trader, but this portfolio will contain things that I may not hold for longer time frames. For example, my core portfolio holds EXC, BRK, and XOM, while my more speculative portfolio contains CIM and GSG.

    I think it's fine to do some shorter-term investing/trading, provided one is willing to keep up with the relevant markets and stock metrics. If you want to "get it and forget it", then stick to longer-term investment prospects.

  • Report this Comment On November 23, 2013, at 9:39 AM, seanoughta wrote:

    Thanks for your inept, timid, fear-based advise about SIRI. I've done quite well with SIRI in the last year and a half since watching this vid. (it only more than doubled)

    Did so well I bought a brand new car- listening to my XM is fun. Please give us more uneducated guesses so I can go the opposite way again. :)

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