Action Alerts Plus (Jim Cramer)

the Action Alerts Plus web page

Newsletter Review Score:  69/100

Obviously, as an investor who watches a fair amount of financial TV programs, I had heard of Jim Cramer.   Between his show, “Mad Money” and his frequent appearances on CNBC, his Action Alerts Plus service (From thestreet.com) was one that I HAD to review, in order to see just how good the information was, and more importantly, how TIMELY the information was.   After a month of using the newsletter, frankly, I was disappointed.

See how Action Alerts Plus compared against the other top newsletters

The concept of this service is similar to the highest rated newsletter, in that it is not a weekly or monthly newsletter.  Rather, you get the information as it comes across Jim Cramer’s desk  (or so they say… I highly doubt Cramer himself is writing this stuff).   However, the concept of getting information at the moment it becomes relevant is much better than getting “summary” type articles a day late.  Like many of the poorly rated newsletters.

The problem with Action Alerts Plus?   The information is just not actionable.  On top of that the portfolio they give performs worse than the market.   They give you returns right on the site.  Since 2002.  First, if yo would have simply invested in the S&P 500, and done nothing else, you would have NEARLY TRIPLED YOUR RETURN VS. THIS SERVICE.   That is simply Horrible.  As of Sept. 30th of this year, they are down 17.72% vs. only 8.51% for the S&P 500.  The losses are substantial, and we are not just talking about a bad year or so… we’re talking about 10 years of losses.   This information is disclosed on their website.

Another MAJOR problem is that they maintain a porftolio of anywhere from 30-35 stocks.   They are constantly adding and subtracting from the same names.  Trying to manage a smaller type portfolio with this service is useless.  Unfortunately, the majority of us have smaller type portfolios, so the moves recommended by the Action Alerts Service couldn’t be replicated anyway.

The price of Action Alerts Plus is affordable.   Set at $59.99 a month, it seems like a “value priced” newsletter.   However, my opinion is that since they push the Action Alerts Plus service  so hard on Cramer’s TV show, and on his website, the street.com, it is priced to suck up the masses, and maximize profits.   The late timing of the information and major losses this portfolio endures, makes it worth far less than the $59.99 price.   In my opinion, even though the price is pretty low,  your money is wasted on it, since the info is so difficult to capitalize on.

What about Stephanie Link?    Stephanie is the “side kick” to Cramer on this newsletter.  I am not sure what she adds to the value of the service, other than the fact that her name is well known, and will likely encourage “newbies” to sign up for the Action Alerts Plus service.

See how Action Alerts Plus compared against the other top newsletters

This entry was posted in Investment Newsletter Reviews. Bookmark the permalink.

8 Reviews on Action Alerts Plus (Jim Cramer)

  1. James Ziolkowski says:
    Overall Rating Not Rated
    Value of Information Not Rated
    Timeliness of Information Not Rated
    Exclusivity of Information Not Rated
    Bang for your Buck Not Rated

    Jim Cramer should be in a cel next to Bernie Madoff
    Jim Cramer says not to buy and hold but that’s exactly what he’s been doing with his stocks like: Yahoo, United healthcare, Whole foods, Bank of America and others.

    Yes, people should sell their stocks when it hits their limit to sell. I don’t agree that people shouldn’t sell their stocks all at one time. Their stocks may start going down after hitting and all time high, so sell and get your money instead of selling a little at a time like Cramer says to do.

    Buying stocks on a limit order is correct but not “always,” Yes, wehn you buy on market your broker will most likely buy your stock at the highest price of the day, so you use a limit buy order at a selected price, but whe you know the stock is going to rise, why worry about a mere few dollars in exchange for not buying the stock at all under Cramer’s plan.

    An example would be putting a limit order to buy Apple stock at $365, but the stock would not go down to that amount and hit $365.10 when you wanted to but ten shares. Then you missed buying Apple stock, which then went to go to $400 a share, so you would just saved one dollar in price using the limit order .10 X 10 shares =$1.00, but you missed out on a $350 profit by doing so. 10 shares X $35 gain a share =$350 for that measely buck that Cramer wanted you to save with his limit buy order.

    Jim Cramer is also wrong about DriP’s. Reinvesting your money in a stock. It’s been sound stock market advice for stock holders but, when you do, you use the dividend to buy the stock on a market order which Jim Cramer said never to do. Also what if the stock is at an all time high? Why would you want to invest when your stock is overpriced? You would have sold it by then, right?

    You should use the dividends to get “cash”, so you can buy what stocks you want too at a low price on a limit buy order buy and not Cramer’s reinvested high priced market order purchases of the stock with the dividend.

    I am also sick of hearing Cramer telling people to sell their good stock and buy his lousy one (ie BAC)that his charitible trust owns. Conflict of interest. I also find it laughale that Cramer always seems to buy a stock at it’s lowest possible price and then sell it when the stock just happens to hit a new high. This man owns countless amounts of stocks and still that could rarely ever happen. Cramer very rarely shows the “dogs” he bought high and had to sell low, that’s if he sold them at all, as he tends to buy and hold contrary to what he tells you to not do. The same an be said about Cramer’s claims of buying when the stock market hits a low and then selling them just at the right time before the market take s a tumble. This is high on the BS meter.

    Last but not least is Jim Cramer’s claim to buy just 5 stocks since you must do research on each one for one hour per week. So a guy who is Warren Buffett and has billions of dollars to invest must own only 5 stocks like a guy who only has $5,000 to invest? More BS and there isn’t one hours worth of news on a stock to do in a week.

    We’ll never know about all the yahoos who call into Cramer’s TV show and claim that Cramer earned them 100% profits or made them any money at all.

    A stock market TV show should not be filled with attempted buffoonery and Jim’s showing of socialist Communists like Lenin, who he thinks he looks like, Mao and Che Guevara. I don’t find the humor about communists that have killed millions of their own people and American soldiers.
    =======================================
    PART II Jim Cramer

    Jim Cramer also tells you to buy in a stock slowly. Buy in 4 equal sections. But what happens if the stock starts to rise and then the money you’re spending is buying less and less stock and it may near the top where it stops going up. You’re stuck. You dollar cost average will be HIGH.

    If I see a good buy opportuninity I put in anywhere from $1,000 -$20,000 dollars in each stock a month depending on what I see. With the lower amount I add $1,000 each month until I either stop and wait for the high to hit or the 52 week high or all-time high are there and I sell the whole thing.

    I don’t do what Cramer does to sell, which is again at 4 seperate sections. What happens if the stock starts to drop? You will get less and less profit and you’ll be smacking your head against the wall for listening to him.

    Nine of of ten times, when the stock hits a high, people start ‘selling’ to lock in ther gains/profits and the stock goes “down.” Great, I just made wads of cash and if the stock goes low enough I buy it all over again if the fundmentals are still right and start the process all over again. Jim Cramer would have you still holding 75% of your position as the stock starst to drp lower.

    With Jim Cramer’s buy and selling stradegy, all you have is risk and your broker will love you for the 8 commissions he just made. If you’re a small stock investors 8 times $7 =$56 a buy or sale adds up and cuts into your profits and ends up in the brokers wallet and not yours. And just think of all the piles of paperwork you’ll have to give your tax accountant who will then charge you a bundle to figure out that mess.

    Capital gains versus dividends.

    This is one of the worst things I see on Mad Money with Jim Cramer. Jim Cramer thinks it’s great that your stock goes down because if it has a dividend the yeild goes up. Say what? Right. So if you have a stock worth $10 a share and a .10 dividend and it goes down 50%, your stock is now worth $5 a share and your dividend went up to .20. Wow! It you owned ten shares you would start with $100 worth of stock that then went down to $50 worth and the dividend went up to “.20.” BIG DEAL.

    You would need the stock to go up 100% to get back to even and the dividends you will earn will be pennies compared to the $50 of stock value you just lost. Jim Cramer is nuts to think that dividends going up will cover the losses of the value of your stock going down in value.

    Remember that if you have a bad dog, get rid of it and take the loss of the stock and put it against all of your capital gains.

    Just remember how badly Cramer hurt investors with his Bank of America stock pick and others.

    Drop in Netflix Stock Price Makes Jim Cramer Look Like an Idiot. Cramer recommended Netflix stock for a long time on his TV show.
    Jim Cramer picks bank of America stock and Netflix.

  2. jim a newkirk says:
    Overall Rating Not Rated
    Value of Information Not Rated
    Timeliness of Information Not Rated
    Exclusivity of Information Not Rated
    Bang for your Buck Not Rated

    On T.V. it said this is free and I only want it if it is!

    • admin says:
      Overall Rating Not Rated
      Value of Information Not Rated
      Timeliness of Information Not Rated
      Exclusivity of Information Not Rated
      Bang for your Buck Not Rated

      They say it is Free, but it’s just a free trial. After the 2 weeks free trial, they start to bill you $55 a month I think. But, if you are really looking not to pay for stock advice, you will only get killed by following the actually truly free services. The advice is consistently weak, Plus, they put your email address on so many marketing lists, you will regret it almost instantly. You’re better of paying for a good service, than trying to get something free.

  3. Traci M says:
    Overall Rating 11111
    Value of Information 11111
    Timeliness of Information 11111
    Exclusivity of Information 11111
    Bang for your Buck 11111

    I think it highly unlikely that a guy as manic as J.C. could sit still long enough to have a cogent thought let alone have any idea what the h*** he’s talking about. As a screwy act he’s fine but as an adviser on staying financially above board. Not!
    He’s a wacky guy making a fortune acting wacky. He makes me think of Willy Wonka. He offers a lot of candy but if you eat it you turn blue and grow to the size of a blueberry. Eventually you self implode.

  4. Lawrence Z. says:
    Overall Rating 11111
    Value of Information 11111
    Timeliness of Information 11111
    Exclusivity of Information 11111
    Bang for your Buck 11111

    I’m another one who figured that these big tv celebs must actually know how to make money by trading. They might, but they don’t bother making sure their newsletter service helps their CLIENTS make money. What a joke. The picks in this service are so DOWN, you could never get the losses back. Thanks a lot, Cramer :(

  5. Marlon W says:
    Overall Rating 22222
    Value of Information 11111
    Timeliness of Information 11111
    Exclusivity of Information 11111
    Bang for your Buck 11111

    I tried the service because I do enjoy the Mad Money Tv show. But really, you don’t get anything in this service worth paying for. Thumbs down on this one. I’m still a fan of the tv show, but this service is a lame duck.

  6. Robert M. says:
    Overall Rating 11111
    Value of Information 11111
    Timeliness of Information 11111
    Exclusivity of Information 11111
    Bang for your Buck 11111

    What a rip off. I know its less than a hundred a month, but I have better spent 100 in a nudie bar than this service. I cancelled after my first month. Nice to see a site out there telling the truth.

  7. Hunter P says:
    Overall Rating 11111
    Value of Information Not Rated
    Timeliness of Information Not Rated
    Exclusivity of Information Not Rated
    Bang for your Buck Not Rated

    So disappointed in this service. Sad commentary when you can’t trust even the people on CNBC to provide a good service that is worth paying for.