Jim Cramer - our source

Today Jim Cramer gave us the who is who of the PCCRC candidates.

I have been telling you about high fliers and earnings jumpers. I have told you that I select my candidates amont stocks that fullfill one or more of this conditions:

1. Fundamentally, the stock beats expectations and the company officials raise their guidance for the next few quarters. This is what Jim Cramer calls "accelerated revenue growth".

2. Stock with the highest percent gains over the last 90 days. Easy, if you have platinum.

In today's show, Cramer talked about GOOG, AAPL, AMZN, RIMM, NVDA... Stocks that one way or another have come to my attention as PCCRC candidates. Easy pickings right?

He has a handfull of other stocks one should look into as well, to see if they meet our criteria for PCCRC's.

http://www.thestreet.com/_yahoo/funds/madmoneywrap/10366568_2.html
In addition to his other horsemen -- Google (GOOG - Cramer's Take - Stockpickr), Amazon.com (AMZN - Cramer's Take - Stockpickr) and Apple (AAPL - Cramer's Take - Stockpickr), with a "special emphasis on Apple"-- some of the stocks Cramer likes are Garmin (GRMN - Cramer's Take - Stockpickr), First Solar (FSLR - Cramer's Take - Stockpickr) (which he said will be cheap in 2012), Ciena (CIEN - Cramer's Take - Stockpickr), Level 3 Communications (LVLT - Cramer's Take - Stockpickr), Corning (GLW - Cramer's Take - Stockpickr) and, for something more speculative, Nvidia (NVDA - Cramer's Take - Stockpickr). Cramer owns Corning for his charitable trust, Action Alerts PLUS.

I have currently trades iin AAPL, GOOG, AMZN, CIENA and NVDA. Also BIDU, which Cramer mention but is not listed in the article.

I could never understand why would anyone go buy shares of these high fliers when we know (as Cramer himself said) growth stocks may fall out of favor suddenly and without warning.

As option's traders we are, we may find options calls in stocks like GOOG quite prohibitive. While calls are good to limit our profit, the total bill can be hard to take if we assume that when we buy an option we put all our capital at risk, should the option close below the strike price at expiration.

The PCCRC is the only way I can confidently trade this growth stocks, and if the much feared reversal occurs suddenly, we have our built in hedge.

I used to shy away from stocks that jumped 10% or more after earnings, and waited until a pull back made options purchase more reasonable. BUT we all know now that a 10% jump can actually be the merely the initiation of a momentum that can stay in place for weeks.

In fact, one may say, why trade the hopes when we can trade reality? why buy options early, when the underlying is dormant in the hope that it could jump, when we can easily find and trade the hot stocks of the moment?

Interesting!

I like to what Jim Cramer because it is not about what I think, but what would the herd think. The PCCRC allows me to profit from watching what the herd do, and Jim Cramer is the cheef herder!

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Status:

I hope to have my third disk ready in a couple of days. I will keep you posted.