Last October, I got into an argument with Jim Cramer because he asked me to remove my article about how Cramer’s company TheStreet.com (TSCM) was a “Sell” based on the framework in Cramer’s own books (See the emails in “Sorry Cramer … We Will Not Bow Down“). If TSCM was an exception to Cramer’s iron-clad rules because late 10Qs and bailing executives somehow didn’t raise concerns like in every other case, well it seems someone more important than both of us is concerned with the inner workings of TheStreet … the SEC.
Zero Hedge has broken the not-so-surprising news that today TheStreet filed a Form 12b-25 with the SEC which presses the ultimate “Sell, Sell, Sell” button on Cramer’s circus play station:
“As a result of the need for the Company and its independent registered public accounting firm to focus attention on matters related to the Company’s previously-announced review of the accounting in its former Promotions.com subsidiary, which subsidiary the Company sold in December 2009 — including matters related to the preparation and filing by the Company in February 2010 of a Form 10-K/A for the year ended December 31, 2008, a Form 10-Q/A for the quarter ended March 31, 2009 and Forms 10-Q for the quarters ended June 30, 2009 and September 30, 2009, respectively, and matters related to an investigation commenced by Securities and Exchange Commission in March 2010 — the Company requires additional time to prepare its financial statements, assess its internal controls and file its Form 10-K for the year ended December 31, 2009 (“2009 Form 10-K”). The Company expects that it will be able to file its 2009 Form 10-K on or before the fifteenth calendar day following the prescribed due date.”
OK, Cramer. Now, please explain to me this time why TSCM wasn’t the biggest “Sell, Sell, Sell” stock on Mad Money tonight? I’ve bought all your books and been on your show, so maybe you can explain why every last bag holder, I mean shareholder, of TSCM shouldn’t liquidate their position and move on to much brighter, less criminally investigated pastures?
As we shake our head at yet another Cramer bomb (as his bankrupt picks are affectionately called by pro traders), I leave you with a legendary piece of Cramer’s journalism (which he spins is out of context because he was talking about Bear Stearns bank accounts rather than the stock — but “Bear Stearns is fine” means the company “is fine” for both account holders and shareholders, or at least it does to real analysts, independent researchers, and now the SEC):
Do you love or hate Cramer? Tell us why in the comments below …
Although TheStreet.com (TSM) peddles in investment advice, the company just announced they are taking an 85% loss on a two-year investment made in Promotions.com. Well, at least that’s consistent with Jim Cramer’s other mega-bombs such as CIT, YRCW, and BBY.
At what point is Cramer going to start including exit strategies with his picks? When that day comes, he will have earned back some genuine respect.
Jules Verne only needed 80-days to travel around the world in 1872. Apparently, things at TheStreet.com (TSCM) are so screwed up, they need half a year to get their books straight and regain compliance with Nasdaq (NDAQ) listing rules.
As I noted in an earlier post, according to Jim Cramer’s own rules you would have to sell TSCM upon learning of such deep rooted accounting problems. Rather than spending time fixing his flagship company, Jim will probably waste time emailing me again and hypocritically asking for me to stop telling people about TSCM’s problems.
Yep. You can ride, alright … straight to see the devil in Hades. As we continue to scientifically prove game show hosts are irresponsible investment gurus (and should have their shows moved from financial media outlets to the Game Show Network — as not to confuse reasonable people), a reader Michael B. pointed out another portfolio killing Cramer “Buy, Buy, Buy” call:
“You see stocks like YRC Worldwide (YRCW) run, you know that it’s been up pretty much every day since September began, and you say to yourself, did I miss it? Am I too late? If the recent history of plays like this pans out, you still have a lot of points to run. Here’s why …”
Well, we don’t need a “why” when we have friends like Jim. We simply need a chart:
That really large green bar is where Cramer told the investing public to buy. Traders like to call that a “blow off top.”
Again, where is the SEC when you have stocks under $10 being pumped by someone who should know better? Yes, the readers and viewers are too blame as well. But this type of investment advisory is completely irresponsible.
You can ride shotgun with Cramer, but friends don’t let friends drive drunk …
Got a Cramer bomb to share? Join the open-source movement and email it to us. It’s time we utilize the benefits of the Information Age.
Want more proof Cramer is a clown? Try these posts:
When will the SEC start regulating game shows masquerading as investment advisory? This weekend, CIT Group (CIT) filed Chapter 11. Merely four weeks ago, Mad Money host and TheStreet.com (Nasdaq: TSCM) founder Jim Cramer said he would buy CIT (“Citi and CIT are Primed for Upside“). This type of incredibly speculative advice is as radioactive to the general investing public as a post nuclear explosion site:
As you can see in the chart above, Cramer recommended to buy CIT at the exact top. Thus, if “In Cramer You Trust” (like the CNBC commercials tell you to do), you are probably going to have lost 90+% of your investment by the open on Monday.
When Jim reads this he will probably email me again and ask me to remove the post and apologize to him. I suggest his remaining viewers email him and ask him to remove his stock picks from Mad Money and TheStreet.com as well as apologize. If Cramer was an honest guy and didn’t pathologically believe his own spin, he would add himself to his Wall of Shame. Unfortunately, if you now attempt to manifest the mission of his new book “Getting Back to Even”, you need to find multiple investments in which you can double your money. Vegas, anyone?
Last October, I got into an argument with Jim Cramer because he asked me to remove my article about how Cramer’s company TheStreet.com (TSCM) was a “Sell” based on the framework in Cramer’s own books (See the emails in “Sorry Cramer … We Will Not Bow Down“). If TSCM was an exception to Cramer’s iron-clad rules because late 10Qs and bailing executives somehow didn’t raise concerns like in every other case, well it seems someone more important than both of us is concerned with the inner workings of TheStreet … the SEC.
Although TheStreet.com (TSM) peddles in investment advice, the company just announced they are taking an 85% loss on a two-year investment made in Promotions.com. Well, at least that’s consistent with Jim Cramer’s other mega-bombs such as 
Jules Verne only needed 80-days to travel around the world in 1872. Apparently, things at TheStreet.com (TSCM) are so screwed up, 
When will the SEC start regulating game shows masquerading as investment advisory? This weekend, 
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