Tag Archives: Jim Cramer
by Chris Roush
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.
by Chris Roush
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.
by Chris Roush
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.
by Chris Roush
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?
by Chris Roush
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.
by Chris Roush
Debra Borchardt of TheStreet.com worked in the securities business for almost 20 years, spending 15 of those years at Bear Stearns. Borchardt’s work experience covered such diverse areas as equities, fixed income and mutual funds with her last position in the clearing side of the business vetting money managers.
During her Wall Street years, she also worked as an actress appearing regularly in the soap opera “As The World Turns” and working as an extra on “Saturday Night Live.” She left the securities business to get her master’s degree in economic reporting at New York University.
Borchardt is now senior producer and a markets analyst at TheStreet.com. As senior producer, Borchardt is responsible for the quality and content of the videos at TheStreet, which produces 500 video reports a month. She is a frequent guest on CNBC, “Nightly Business Report” and ABC News Now.
Her twitter handle is @wallandbroad. For the uninitiated, the New York Stock Exchange is located at the corner of Wall Street and Broad Street.
Borchardt spoke earlier this week by email with Talking Biz News. What follows is an edited transcript. (And for the record, we are big fans of Borchardt’s business journalism.)
After more than a decade on Wall Street, why did you decide to switch careers?
One job I had during my financial career was summarizing the equity analyst presentations to the sales force. Eliot Spitzer changed all that and brokerages were petrified for anyone but an analyst to talk about stocks. I moved on to vetting money managers, but that wasn’t nearly as fun and I missed talking about the market. Wall Street ceased to be fun after Spitzer and I was ready to get out, but still make use of all my years of experience. I used to act in my off hours, so being an on camera financial journalist combined my years of wall street experience with my acting background.
How does being on Wall Street help you cover the markets?
There is nothing that can substitute for going to the stock exchange every day. Talking to the guys, getting a feel for the mood and tone. You can see at the opening what is happening at a post if a crowd gathers. It’s a fast way to get lots of sources and connections.
What is your typical day like?
I have a long commute, which I use to check what stocks are moving, answer emails, send tweets and do any social media. When I get to the office, I book my first interview on the floor and prep for that. Some mornings I tape with Jim Cramer, so I pitch him ideas. We normally tape three topics, so I have to be well versed in all three. Again – prep work. I have to write up titles and callouts for these videos right away which means I don’t come up for air until 11 or so. Next, I move on to booking interviews and preparing for interviews. Ordering graphics and finding broll for videos I am producing and some writing if I have time. I will tape as many as four to seven interviews a day.
What are your goals every day in covering the market?
I try to make sure I cover the items that will be the most important topic for the day. With so many options to choose from, it can be hard to prioritize what needs to be highlighted. I try to find a nugget of information that maybe other reporters haven’t hit upon on the main stories.
How is TheStreet.com’s audience different than other business media?
We have a very specific demographic. 85 percent male and mostly independent traders. They are affluent and knowledgeable about the market. So we can write and do video without having to always explain things. They mostly want stock advice, not piano-playing kittens. Our coverage is very stock focused, not so much the macro picture.
What do you think you do differently than other market reporters?
I feel like I bring an insider’s view to my reports. I tend to give color to my pieces, as opposed to straight news. I think my viewers can get market levels and headlines from most outlets, but I try to make sure I let them know what it means. Like, a stock is behaving contrary to its news. I’ll explain why as opposed to just reporting that a stock is moving in a certain direction.
How do you come up with something new every day to report?
That’s easy. There’s always news in a stock somewhere. Just look to see what stock is having lots of volume or trending on stock sites if the headlines are slow. I read a lot of SEC filings. There are a lot of hidden gems in S-1 filings for public offerings , which is an area I focus on.
Is there any difficulty in getting sources to talk when you’re reporting on investments?
Hedge funds are the worst to talk to. They never want to be interviewed. Mutual fund managers always want to talk because they want to push their fund. CEOs will talk if things are going well, but if they suddenly decline, then that means red flag and a story. Economists are terrible for video, they hedge every answer and go on and on, but they are good for print. Eventually you build up a nice network of sources, which is helpful because sometimes you end up smiling and dialing for hours to get the “right” source.
You also appear on other media. How does that help TheStreet.com?
Any time I can appear in other media, it promotes our web site. We don’t advertise and are dependent on portals and organic search. So, my appearances elsewhere gets our name in front of potential readers.
If you have some news that is breaking, how fast can you get it on the site?
We just renovated our studio, so I can tape and upload a video within minutes. We have the latest Tricaster switcher, virtual sets, LED lighting, new servers, fiber lines – you name it, we’ve got it. With our previous system, it would’ve taken 45 minutes. Our written articles can be published as soon as they are written.
Can you explain the “Test Kitchen” for people who have not seen it?
That video segment was born from reporters in the newsroom just talking about stuff we eat. Since we also cover companies, it was always a lively conversation. We’re all opinionated, so there is frequently a friendly disagreement over who has the best cupcakes or whether Chipotle is better than Cosi. We decided to put that conversation on tape and compare product as well as company. The better product isn’t always the better stock.
What is Jim Cramer really like?
I’ve worked with Jim for five years and continue to be impressed. He has a brilliant mind for stocks and a passion for the market. He is quite thoughtful in the office and has a laser-like focus for what he is trying to do each day. He is not like the “Mad Money” show; that’s TV, that’s different. No one wants to see calm and thoughtful on TV – that doesn’t sell. It’s Jim, but Jim in a ramped up way. But walking down the hallway at work, Jim’s calm and focused, which is amazing if you ever took a look at his schedule. I have learned a great deal from working with Jim. It’s been a true pleasure.
by Chris Roush
CNBC “Mad Money” host Jim Cramer will be keynote speaker at the Society of American Business Editors and Writers 50th anniversary gala on Saturday, April 6.
“Cramer is an iconic figure who has contributed greatly to business journalism,” says Jill Jorden Spitz, SABEW president and assistant managing editor/business of the Arizona Star
About 350 persons will attend the black-tie-optional gala at the historic Renaissance Mayflower Hotel in Washington. Conference goers will attend the gala as part of registration to the conference, which will be held at the Marvin Center at George Washington University. Tickets to the gala only are $150, and tables of 10 are $1,450.
Proceeds benefit SABEW’s educational outreach, and a portion of the ticket price is tax deductible.
Kai Ryssdal, host and senior editor of American Public Media’s Marketplace, will be master of ceremonies for the event.
Cramer, a fixture as a CNBC commentator and host of “Mad Money,” founded the acclaimed business journalism outlet, TheStreet.com, in 1996. He is a former hedge fund manager and founder/owner and senior partner of Cramer Berkowitz. His compounded rate of return was 24 percent after all fees for 15 years at Cramer Berkowitz. He retired from his hedge fund in 2001.
He’s the author of six books, including his most recent, “Jim Cramer’s Getting Back to Even,” published in 2009. He’s a graduate of Harvard University and Harvard School of Law.
by Chris Roush
Claire Atkinson of the New York Post writes Sunday about how Jim Cramer’s “Mad Money” show is drawing plenty of viewers when it repeats on CNBC at 3 a.m.
Atkinson writes, “Cramer’s ‘Mad Money,’ one of the most-hyped shows on CNBC, gets a larger audience when rebroadcast in the predawn hours on the NBC network than during its live 6 p.m. airing on the business cable channel.
“Our completely uninformed sources speculate that Wall Street traders are probably crawling home from clubbing at that hour and, while checking their computers for the latest on the Asian markets, have Cramer on the TV for background noise.
“NBC first started airing ‘Mad Money’ at 3 a.m. in March and whaddya know — the manic stock picker has an average audience so far of 400,000.
“The 57-year-old former Goldman Sachs trader attracts just 187,000 viewers on his CNBC show.
“David Scardino, programming analyst at ad agency RPA, said: ‘It may show the staying power of a broadcast network versus a cable network. I’m surprised, but it makes you wonder how many people have fallen asleep with the TV on.’”
Read more here.
by Chris Roush
Steve Kanaval writes on Expedated.com that Jim Cramer needs to retire from his CNBC work.
Kanaval writes, “CNBC used to mean Consumer News and Business Channel now it means Cramer all the Time – and Not all this BooYaa Coverage of things Jim thinks are important, the show has more depth than they show, and everyone bows so much to what JC says he is like the bratty kid at the party who has to make a spectacle of himself whenever the camera is on him, and some of his silly rants (have little to do with what the original subject) make me turn to ESPN or Dan Patrick.
“Joe Kernan can’t keep one line of thought going for more than 60 seconds, and Rick Santelli from the CME is always angry about something and seems to yell louder and louder without the producers managing the content. most viewers don’t watch or listen to the show in the afternoon, and the wailing of that moron Simon is the only reason i stand up to mute the TV. Usually I hit ‘guide” so I can find some sports or a movie which will remove me from the droll which goes on during daytime hours. The only value after the opening bell (other than watching Mellissa Lee’s lips move like an old Speed Racer show) is the closing show where they have ACTUAL portfolio managers on the show ( I still watch M.Lee’s lips move during this show..).
“Business content and broadcasting in general has changed so much since CNBC formed in 1991..but it’s been a long slow slide for CNBC and eventually they will all ride off into the sunset … for now. I miss my friend Mark Haines.
“As if we don’t have enough choices on cable for business coverage…any Tom,Dick or Harry can create a podcast and launch it like a monkey to the moon on a website…..even me !!!! Yessssssssssssssssss…take that Cramer !!! Please retire and write books.”
Read more here.
by Chris Roush
Financial news site TheStreet.com is in turmoil, says company co-founder Jim Cramer, in comments posted on FutureofCapitalism.com about his career in journalism.
FutureofCapitalism writes, “A job at the Los Angeles Herald-Examiner was an upgrade in pay — to $179 a week — but not in circumstances. His editor assigned him to try to get an interview with the ‘San Diego Sniper’ while the serial killer was still shooting. It was then that he wound up living in his 1977 Ford Fairmont. ‘Someone was murdered a few cars down from me in my parking lot home,’ Mr. Cramer recalled. On the upside, he did not need homeowner’s insurance, ‘because my collision and theft covered everything.’
“Things have since turned upward for Mr. Cramer. ‘I love my job,’ he said, advising young journalists: ‘You need the Nielsens, you need the page views, you need the showbiz.’
“‘On Monday, go register yourname.com,’ he said. ‘If you believe, as I do, that journalism is indeed commerce, you might as well own yourself.’
“In addition to his work at CNBC, Mr. Cramer also works at thestreet.com, which he described as ‘really in turmoil.’ Although he said ‘the web won’ over television, he said the web-based journalism business is tough. ‘Every year your ad rates go down,’ he said.”
Read more here. TheStreet.com has named a new CEO and a new editor in chief in the past two months.