Tag Archives: Jim Cramer

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TheStreet seeks acquisitions, contributing writers

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The following comments were made by TheStreet.com chief executive officer Elisabeth DeMarse during the company’s fourth-quarter conference call on Thursday:

We continue to aggressively search for attractive targets. A recent study by BDO reported that pricing and availability of quality targets are top challenges for private equity funds in 2014. We too are finding that pricing is also affecting us and our search for targets. So the pace of completed acquisitions may not be as rapid as we would like. Having said that, we hope to complete at least one significant acquisition in 2014.

In closing, I would like to announce an important initiative for 2014, which is our contributor program, also known as Indefatigable. Our goal is to attract smart influential writers, analysts and money managers to augment the work of our newsrooms, and who want to be part of our mission. This is an important initiative lead personally by Jim Cramer to attract the best and brightest stock minds to join our publisher platform. By publishing on our platform, smart research can be amplified to TheStreet’s 95,000 Twitter followers, Jim Cramer’s 730,000 Twitter followers and our 122,000 Facebook fans. The Indefatigable contributor platform returns us to our roots and original vision where TheStreet served — stood for bringing smart, independent Wall-Street-quality equity analysis to main street.

In addition to attracting new contributors, we’ve launched blogs for our writers, providing us with another avenue for reaching our audience. We’ve launched blogs for Stephanie Link; for Herb Greenberg, as a complement and lead generator for Reality Check; and for Adam Feuerstein, who is our award winning biotech reporter. Beyond the launch of our Indefatigable CMS, we don’t expect any big strategic changes, but expect to see an accelerated pace or improvement internally that will ultimately be reflected in the performance of the company.

Read the entire transcript here.

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Cramer signs new contract with TheStreet.com

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TheStreet.com announced Tuesday it has entered into a new four-year agreement with Jim Cramer, the company’s co-founder and markets contributor.

This agreement is one year longer than his previous contract, which was set to expire in December 2013.  Cramer will continue his role as  chief markets commentator for TheStreet.com, continue trading his multi-million dollar Charitable Trust portfolio at Action Alerts Plus and publishing his blog three times daily on Real Money.

The new agreement is effective Dec. 1, 2013, and will expire on Dec. 31, 2017.

“The Company greatly benefits from the many contributions of our founder, Jim Cramer, the most recognized personality in financial media and a true market savant,” said Elisabeth DeMarse, chairman, president and CEO of TheStreet, in a statement.  “Jim Cramer’s continued commitment to TheStreet and eagerness to renew his contract for a longer period than the last agreement is strong validation of the strategic direction of the Company.  Harnessing Jim’s digital rights enables our Premium Subscription division to drive greater revenue, expand our video offerings, and launch new products to support organic growth.”

 

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TheStreet.com investor complains about Jim Cramer

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Josh Kosman of The New York Post writes that an investor in The-Street.com claims the company’s co-founder and biggest name — TV stockpicker Jim Cramer — is the equivalent of an overpaid baseball slugger who has failed to deliver for shareholders.

Kosman writes, “Private-equity firm Spear Point argued in its latest letter to the company’s board that Cramer’s $1 million-plus salary should be tied to performance when his three-year contract comes up for renewal at the end of the year.

“‘If Mr. Cramer were a player on the New York Yankees, his talent and fame would be marginally interesting,’ according to the letter obtained by The Post. ‘To play in the major leagues you must contribute to your team’s success.

“‘Mr. Cramer has failed over the years to do that for his team, TheStreet, and its Steinbrenners, the shareholders.’

“According to Spear Point, Cramer has received more than $13 million in cash compensation and millions more in stock and other benefits from 1999 until 2012, including a personal driver, while ‘common shareholders have watched almost $400 million in market value evaporate.’”

Read more here.

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Cramer welcomes Greenberg back to TheStreet

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TheStreet.com founder Jim Cramer writes Friday to welcome business journalist Herb Greenberg back to the company.

Cramer writes, “With my persistence, Greenberg signed on. After that hire, I never doubted our success. Who could risk not reading Herb? Our slogan once Herb was hired was ‘Ignore us at your own risk.’ People couldn’t afford to. We had Herb. We ultimately made it when so many others failed.

“With Herb in the stable we became electric, a must-read. And we stayed that way through thick and thin, although the thin, at times, was a little overwhelming. We went through management turmoil at TheStreet — tons of it — and after six terrific years, Herb moved on.

“But we never lost touch. I read him every day and when he came to CNBC we reunited. One of the amazing joys of going to work at the Englewood Cliffs studio was going over to see Herb as much as possible, not only because he’s the best journalist going — not business journalist, but journalist — but also because he’s one of the finest people in the world. He’s a pillar of integrity and friendship. He’s as ‘go-to’ in real life as he is in business life.

“Since then, I have never missed a Herb segment or a Herb column. He is the only man in the world who so enrages and engages me that I would run on the CNBC set without a mic and no makeup (cardinal sins in the TV biz) just to rebut him. It became a running joke at CNBC, ‘Here comes Cramer,’ because Herb had goaded me by red-flagging a stock I liked — including almost every stock he mentioned today in his re-inaugural column.”

Read more here.

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Don’t trust some financial journalists

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Investment professional Dan Solin writes for U.S. News & World Report why some financial journalists are not to be trusted.

 

 

Solin writes, “CNBC is a rich source of useless financial information. Typical is Cramer’s recent endorsement of Facebook. He now believes the stock is a buy because it has entered a ‘virtuous cycle’ in advertising.

“Respected journalist Allan Roth reviewed Cramer’s stock-picking skill in a scathing blog post. The results aren’t pretty. Roth calculated the odds of Cramer’s four erroneous sell recommendations for stocks that turned out to be the best performers out of 749 different stocks for the six-month period ending in May 2013. They were 1 in 13.1 billion.

“Cramer may be right or wrong about Facebook, but his track record does not inspire confidence.  Relying on his stock picks is gambling and not investing.

“Motley Fool. This popular website clearly has an identity crisis. I have seen some very good postings that note how difficult it is to beat the markets and advise readers to consider index funds. Yet the site clings to the notion that its insights on the merits of stocks and actively managed mutual funds are valuable, with columns like ‘How Stocks With Strong Fundamentals Beat the S&P.’

“Here’s what is not well-known. Motley Fool is the fund manager of three funds bearing its name:  The Motley Fool Independence Fund, the Motley Fool Great America Fund and the Motley Fool Epic Voyage Fund. According to its latest semiannual report, each of these funds underperformed its relevant index over the six-month period from November 1, 2012, through April 30, 2013.

“Presumably, if the Motley Fool had stock-picking expertise, it would be reflected in the performance of its proprietary funds.”

Read more here.

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Cramer: Enough with the hedge fund coverage

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Jim Cramer writes Thursday on TheStreet.com that business journalists spend too much time coverage the buying and selling of stocks by hedge funds when they file 13F documents with the Securities and Exchange Commission.

Cramer writes, “Here’s a visionary memo I am writing now for people in the press one year from now:

 ”‘As of today, we will no longer do ‘wall-to-wall’ coverage of 13F filings, because it doesn’t help our viewers or our readers.’ The visionary memo continues: ‘This cottage industry of looking at filings, most of which are extremely dated, causes people who aren’t sophisticated enough in the process to make wrong moves.’

“But, because the writer of the memo doesn’t want to push back 100%, he adds, ‘There will be exceptions. We will continue to cover what Warren Buffett buys and sells, because his fund is not a hedge fund darting in and out of stocks. We will also, if we believe it to be the case, cover funds that seem to be struggling, like John Paulson’s gold fund. But, beyond this, we are simply going to de-emphasize the breathless reporting on these matters, because at a certain point we have to conclude that it is our equivalent of prurience and nothing more than that.’

“I know, harsh memo. I am a harsh guy.

“Honestly, though, the obsession with this stuff is nonsense. I remember having an assistant fill out these forms and thinking, ‘Oh yeah, I remember firing that guy and having to dump his portfolio,’ or, ‘Gee, I got rid of that position right after this filing was due, but I have to include it.’

“Plus, let’s face it, these filings are really late — so who knows? I am sure there are plenty of people who are back in who had left a position at the time of the filing.”

Read more here.

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Solin: Ignore what Cramer says

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Dan Solin writes for The Huffington Post that CNBC “Mad Money” host Jim Cramer‘s talk at the recent Society of American Business Editors and Writers’ conference in New York was full of misstatements, including when he said he was among the “best of the best.”

Solin writes, “If Cramer was really ‘the best of the best,’ he would disclose the puny odds of ‘beating the market’ by relying on his stock and funds picks and those of his colleagues. If you are relying on his advice, you are chasing rainbows. Instead, you should heed the advice of Jonathan Clements, the former personal finance columnist at The Wall Street Journal, who said: ‘It’s the big lie that, repeated often enough, is eventually accepted as truth. You can beat the market. Trounce the averages. Outpace the index. Beat the street. An entire industry strokes this fantasy.’

“It’s your choice. You can follow the bloviating hype of Cramer or the sound research of William F. Sharpe and many others. Which do you think is really ‘the best of the best’?”

Read more here.

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Why Cramer’s comments about biz journalism hurt

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Dow Jones Newswires columnist Al Lewis writes about the comments made by CNBC “Mad Money” host Jim Cramer on Saturday at the Society of American Business Editors and Writers‘ conference about the current state of business journalism.

Lewis writes, “If you watch his show and you buy his stock picks, you are not really doing what he really recommends, which is to think and analyze for yourself. The show, he has long said, teaches the thought process behind investing. It’s not meant to be a hot-tip line. And Cramer often admits when he gets it way wrong.

“It hurts taking criticism from a man who gets plenty of criticism, himself. It hurts being confronted by a guy who bears some resemblance. But what Cramer told us at SABEW was right. Too often we’ve focused more on the bank than the rogue banker.

“‘It’s not just the banks,’ Cramer continued. ‘We have let some companies get off with consistent bad behavior and have not given their CEOs enough scrutiny for their misdeeds.

“‘I think our coverages bear a role in this and we are often as culpable as the government itself because the government responds to the press in these instances. We in this room are letting these execs off the hook. Where’s the shame? Where’s everyone else’s Wall of Shame?’”

Read more here.

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Jim Cramer and Al Lewis of Dow Jones: Separated at birth?

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Dow Jones Newswires columnist Al Lewis says that many of his readers tell him he looks like Jim Cramer of CNBC and TheStreet.com.

On Saturday night, the two met at the Society of American Business Editors and Writers‘ event in Washington, DC.

What do you think? Separated at birth?

Cramer at SABEW

Good and bad in business journalism, says Cramer

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There are some good and bad areas of business journalism, said CNBC “Mad Money” host Jim Cramer, and also some areas that could use improvement.

“Business journalism is now everywhere, and just a keystroke away, as it should be,” said Cramer, who was the dinner speaker at the Society of American Business Editors and Writers annual conference on Saturday night.

Cramer said that he thinks that coverage of the intersection of Washington and business is “superb,” but he lamented most of the company coverage in the country. He also was critical of coverage of the Securities and Exchange Commission, calling it “perplexing.”

In terms of company coverage, Cramer told the audience that he used to subscribe to daily newspapers around the country to read their coverage of local companies. That has changed, he said, and daily newspapers no longer provide good coverage of companies.

“I find our coverage of individual cmpanies to not be aggressive enough,” said Cramer, although he noted that there is too much coverage of companies such as Apple, Google and Yahoo. “This is a horrendous development.” Cramer urged business journalists to be more aggressive in their coverage of executives who have mismanaged companies.

Cramer also noted how the internet has changed business journalism, and he defended CNBC’s recent “Rise Above” campaign.

The co-founder of TheStreet.com also admitted that he hasn’t necessarily done a good job always with his coverage, but he said he believed that the industry needed to start a discussion on how to improve coverage.

“The stock market coverage is too bearish,” Cramer added. “We need to be more even.”

During an earlier conversation with Talking Biz News, Cramer said he was a big fan of Bloomberg News and its coverage.