The Cramer Effect

Since beginning my new company I've done a fair bit of research on stock market sentiment and what moves it. If you haven't seen Jim Cramer's show, Mad Money, on CNBC, you should check it out. This guy seems to be a sentiment power house. He was also recently on the cover of Business Week magazine and has developed a significant brand in the area of stock picking. I believe BW said that he has around 400,000 daily viewers of the show now. Jim Cramer is a value stock picker but every mention of a stock by Cramer seems to cause the stock to gap up the next morning. Recent case in point was Salesforce.com (CRM). They were Cramer's pick of the week and gapped up by almost 10% the next morning.