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 …
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:
After having time to reflect on Jim Cramer’s email to me (see below), I keep recalling the scene in the movie 300 where the God-King Xerxes tells Leonidas it would be a shame for his people to perish because of a simple misunderstanding. Like Cramer telling me to “take it [my post] down and apologize to me so we can move on,” Xerxes says Leonidas can simply bow down at his royal feet and all will be forgotten.
I do not project myself onto the great Spartan King Leonidas. Rather, I am witnessing a major movement unfolding where real journalists and activists have used the internet to finally battle against the entertainers and eyeball monopolists who have melted the brains and 401(k)s of America.
As we say on Wall Street, “The easy money has been made.” Media oligarchs have manipulated and omitted facts at will because the barrier to rebut their falsehoods was simply too high. But now sites like Zero Hedge, The Big Picture, Minyanville, Wall St. Cheat Sheet, and many others are posting the Truth … and people have been rejuvenated to demand honesty and transparency. Moreover, it’s an open-source effort as insiders and researchers happily share information with journalists for something more meaningful than money: Spartan glory.
Like Cramer’s debate with Jon Stewart, my questions and comments were met with silence. Not because Cramer is the Buddha. Because Cramer cannot dispute the facts (and I didn’t even pull out the smoking guns). There is obviously a new post in the works where a complete collection of Cramer’s nonsense will be compiled for the other side of the scale which holds “In Cramer We Trust.” But for now, this chapter of the perpetual expose ends with Zero Hedge’s poetic penultimate climax:
“Damien Hoffman over at Wall Street Cheat Sheet seems to have gotten into the crosshairs of none other than book (and stock) promoter extraordinaire James Cramer. Subsequent to our post on TheStreet.com potentially being in hot regulatory hot water, Damien penned the following post:
According to transitive logic, Jim Cramer recommends selling the stock of his company The Street.com (Nasdaq: TSCM). In his books, Cramer says to dump stocks when executives depart suddenly or companies miss their filings. Therefore, once The Street “failed to produce their 10-Q filing for the second quarter” and executives started jumping ship, an honest Cramer would have been forced to “Sell, Sell, Sell.”
If you are looking for supporting evidence to dump your TSCM shares, here are a few strong data points:
4) The Street’s last go-to guru, Doug Kass, has an incredibly questionable track record for RealMoney subscribers (See “Buy the Financials. Yes, Buy” JANUARY 2008, and Doug’s schizophrenic Twitter stream of picks (e.g., April and May 2009) which contradict his jumpy calls and articles;
The fearless leader of Mad money and the possesser of the world’s spottiest stock recommendation track record apparently took offense to Damien’s ideas, and at the cost of taking some time away from promoting his book on CNBC and elsewhere, felt compelled to respond with the following email, titled with the ironic “Some decorum and some fairness” subject line:
Subject: Some decorum and some fairness
From: “James Cramer” <xxx>
Date: Mon, October 26, 2009 5:30 am
To: <info@wallstcheatsheet.com>
While I understand your need to be “on the map,” and I understand
the “public figure” exception to the libel laws, I do think that
given your backgrounds and your histories, you are taking too much
license with your Jim Cramer says Sell TheStreet.com .
I believe that level of lack of responsibility is beneath you. So
please take it down and apologize to me so we can move on. Fair?
Think about it. Think about how much better you are than that? If
you really need to sell subs just sell them, don’t trash me to do it.
jjcramer
Indeed, one expects Mr. Cramer should know all about levels of responsibility and how far one must stoop to end up below them. In either case, a diplomatic Damien Hoffman retorts:
Jim,
First, as you can appreciate, good content still needs to be entertaining. No one knows that better than you.
Second, this is not personal. I have bought all your books, was a huge fan of your show for years, and my brother and I were guests in your first ever live audience. We even have a picture with you.
If you are interested in sending over a retort to our cited claims, please feel free and I will post it. There is no libel in the post. The excerpt says “According to Jim Cramer’s rules …” Your rules in your book/show are to sell a stock and ask questions later when execs and board members start bailing. The same for companies which delay their filings. Therefore, according to what you have taught us, this is the action we must take. Are you saying TSCM is an exception? If so, why?
Lastly, I think the biggest disappointment as a fan of yours for over 10 years was the way nothing has changed since after you went on The Daily Show and promised to us you would be more clear your show was entertainment and NOT investing advice (which would have been nice years ago). CNBC still runs “In Cramer We Trust” and other similar ads. I am sorry Jim, but many people I know (including family members) think of you as a guru based on the way CNBC presents you. They have lost a lot of money following even your “Top Pick of the Year” New York Stock Exchange and repeated “The Only Stock to Own” SHLD. I know others who lost money following Dykstra as his subscriber. It was your responsibility to prevent a conman from working at TheStreet with your full endorsement. And the psychics on The Street, well, I think that speaks volumes about whether you are running a financial media company or something completely different. Consequently, I don’t think censoring the truth is a respectable option regarding our post.
Further, if you look at the sales page for Kass’s newsletter, you have conveniently left out his HORRIBLE Jan 2008 “Buy the Financials” call and MANY of his other bad calls. If we are nitpicking what is “beneath” us, I’d put that at the top of the list before throwing stones at me.
The same for claiming Ron Insana’s track record was associated with his newsletter performance BEFORE it even launched. We are both trained as lawyers and know there is a way to present anything, but it can still be a lie.
I am calling it as I see it. If you feel otherwise, I will print your opinion. I am not an asshole. I am part of a movement of people who are trying to put truth back into financial media.
FYI: None of our posts in The Scoop sell subs. That’s not our core business model.
Regards,
Damien
Editor-in-Chief
Wall St. Cheat Sheet
We look forward to getting more clarity on not only TheStreet.com sorely missed 10-Q, but on the potential escalation of how far Mr. Cramer is willing to go to address perceived “lack of responsibility.” We are fairly confident that many of Jim Cramer’s “fans” would be willing to hold Mr. Cramer to the exact same degree of responsible conduct that the latter suddenly seems to deem appropriate. Maybe Mr. Hoffman should just stick to presenting Buy stock recommendations for major Wall Street firms, especially ahead of 90%+ price drops in their respective stocks.”
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.
After having time to reflect on Jim Cramer’s email to me (see below), I keep recalling the scene in the movie 300 where the God-King Xerxes tells Leonidas it would be a shame for his people to perish because of a simple misunderstanding. Like Cramer telling me to “take it [
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