Smith Micro Software and First Niagara Benefit From Cramer Effect

The Dow Jones industrial average posted another small loss on Wednesday, dropping 26 points to close at 9,070. However, despite the broader market losses, Smith Micro Software, First Niagara Financial Group and Cypress Semiconductors all saw huge spikes due to the “Cramer effect”. 

On Tuesday’s Mad Money show, Jim Cramer labeled First Niagara Financial Group (FNFG: 9.74 0.00%) as the next big “super regional” bank. He is excited about the company’s acquisition of Harleysville National and its expansion in Pennsylvania and New York.   The markets responded positively to the bullish comments, sending First Niagra’s stock up 4.3%.

In the Lightning Round segment of Tuesday’s Mad Money show, Mr. Cramer recommended Smith Micro Software (SMSI: 2.58 0.00%). Cramer likes the company as it operates within the mobile internet family. He recommended investors keep buying the stock. Evidently it was good advice, as the stock gained 6.4%. 

Mosaic (MOS: 56.23 0.00%) also was impacted by the “Cramer effect”, as the stock lost 3.2% in Wednesday’s trading session after bearish comments from Mr. Cramer. Cramer advised investors against investing in Mosaic. “Don’t go with Mosaic, which happens to be, I think, Mel Gibson’s favorite fertilizer play.” 

Meanwhile, United Health (UNH: 52.14 0.00%), Wellpoint (WLP: 64.83 0.00%) and Aetna (AET: 45.14 0.00%) all dropped despite Jim Cramer declaring President Obama’s healthcare bill “dead on arrival”. Cramer expects an upturn in the healthcare sector, but may have been a bit premature in his recommendation as all three stocks dropped big in Wednesday’s trading session. 

Other Cramer stock picks: 

Cypress Semiconductors (CY: 18.37 0.00%) gained 3.2% – Cramer likes the mobile internet sector.

RF Microdevices (RFMD: 5.33 0.00%) rose 2.4% – Part of Cramer’s recommendation of the mobile internet space.