Jim Cramer has been called a lot of things in his day, and many of those terms cannot be repeated in this space. One of the more common things people complain about is that he “flip-flops” on his stock recommendations. I don’t agree with a lot of things he says, but this is one complaint I don’t have against him. Picking stocks is not religious dogma and things can and always do change with the river of new information that is constantly coming out.
Flexibility
People on message boards like to post old quotes from gurus about their favorite stocks to back up whatever their position might be. The problem is that things can change dramatically in a short period of time and that recommendation might not be valid anymore. The pundit’s call in the past should not be adhered to no matter what, especially if new developments have occurred.
In politics I would agree that changing your tune on a topic is probably a flip flop and should be criticized if it is obvious that a politician is pandering to a certain group and telling them what they want to hear. However, in the stock market it is called “flexibility.” The ability to adapt to new information and market conditions is essential if one is to be successful and make money over time. Falling in love with a stock and holding regardless is a dangerous thing to do on Wall Street.
One stock that I used to love is China Marine Food Group (CMFO), but I just can’t recommend it anymore due to the dangers of the Chinese small cap group. Since I first wrote about it last August, many of its peers have been proven to be outright frauds, and I simply can’t trust that any given company in the group is legit without personally visiting the factories and talking to management. There is no guarantee even after doing that.
The bottom line is to be open to changing your opinion of a stock if the winds change direction. It will help you to make more money and save you money if you happen to make a wrong call, which everybody does.
When the Facts Change, So Should You is an article from: 
