Tag Archives: Jim Cramer

Jim Cramer and the stock market

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Zev Chafets profiles CNBC “Mad Money” host Jim Cramer for the upcoming edition of the New York Times magazine,

Chafets writes, “Cramer picks stocks on the air, but he is not allowed to own any (the exceptions are shares of TheStreet.com, General Electric, CNBC’s old parent company and Comcast, its new parent company). He runs a charitable portfolio, Action Alerts Plus, which is governed by a trust and is open to public scrutiny. He can’t trade a stock he mentions on the air for at least five business days, and he must hold whatever he buys for at least 30 days. These rules make it impossible for him to engage in the hyperaggressive buying and selling of his hedge-fund days. Still, most years the Action Alerts Plus portfolio has beaten the S.&P. 500.

“Cramer’s flamboyance and cockiness make him an easy target. Some maintain that it is simply impossible for any human to recommend as many stocks as he does (Barron’s, in 2007, put the number at 7,000 a year) and know what he is talking about. Barron’s conceded that Cramer’s advice was ‘generally smart, his knowledge of individual stocks amazingly detailed’ but calculated that his on-air picks trailed the market. This is debatable, since Cramer doesn’t give equal weight to all his recommendations and doesn’t normally tell people when to sell.

“But the more damning criticism of Cramer comes from Wall Street professionals who know how much expertise it takes to make money trading stocks. Amateurs, in their view, don’t stand a chance, and Cramer is merely egging them on. ‘Cramer induces his viewers to do things that are bad for them,’ says David Swensen, who manages Yale University’s endowment. ‘He’s smart enough to know what he’s doing. ‘Mad Money’ delivers a very dangerous message — that individual investors can beat the market with momentum-driven, high-octane trading strategies. There are individuals who do beat the market, but their number is vanishingly small. Cramer is a master manipulator. He has absolutely no accountability. This is serious business; people’s retirements are at stake.’”

Read more here.

Cramer retires “They know nothing” button for Burnett

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“Mad Money” host Jim Cramer said on the air Friday that he is retiring the “They Know Nothing” button that he uses in honor of CNBC anchor Erin Burnett‘s departure from the business news network.

Michelle Fox of CNBC.com writes, “Burnett thanked the ‘Mad Money’ host for being ‘the best, the greatest, the supporter, the proponent, the funny man, the crazy one, the mad one.’ She called her segments with Cramer the highlight of her day. Cramer, in turn, told Burnett that he was retiring his ‘they know nothing’ button in honor of one of their best moments together.

“Cramer, who teared up several times during the exchange, said the ‘best three minutes’ he has ever done on television was a segment he did with Burnett out of Petra, Jordan.

“‘Your foreign correspondent work is some of the best I’ve ever seen,’ he told Burnett, ‘You are a consummate professional.’

“With that, Burnett thanked her colleagues, friends and the viewers for ‘the best 5 ½ years of my life so far’ and signed off CNBC for the last time.”

Read more here. To hear all of Cramer’s buttons, go here.

Cramer retires "They know nothing" button for Burnett

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“Mad Money” host Jim Cramer said on the air Friday that he is retiring the “They Know Nothing” button that he uses in honor of CNBC anchor Erin Burnett‘s departure from the business news network.

Michelle Fox of CNBC.com writes, “Burnett thanked the ‘Mad Money’ host for being ‘the best, the greatest, the supporter, the proponent, the funny man, the crazy one, the mad one.’ She called her segments with Cramer the highlight of her day. Cramer, in turn, told Burnett that he was retiring his ‘they know nothing’ button in honor of one of their best moments together.

“Cramer, who teared up several times during the exchange, said the ‘best three minutes’ he has ever done on television was a segment he did with Burnett out of Petra, Jordan.

“‘Your foreign correspondent work is some of the best I’ve ever seen,’ he told Burnett, ‘You are a consummate professional.’

“With that, Burnett thanked her colleagues, friends and the viewers for ‘the best 5 ½ years of my life so far’ and signed off CNBC for the last time.”

Read more here. To hear all of Cramer’s buttons, go here.

What I learned from Jim Cramer

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James Altucher writes Monday for The Wall Street Journal what 10 lessons he learned from CNBC “Mad Money” host Jim Cramer.

Here are two:

4)  Commentary belongs in financial journalism. Cramer changed everything when he started thestreet.com and added commentary from professional investors into the mix. The negative argument was then (and still is) that there is a conflict of interest if someone owns a stock to be then talking about it on a platform meant for serious journalism. But that’s nonsense. Who better to write about a company than someone who has serious resources and used those resources to dig under every rock and uncover as much as they can before putting hard-earned money to work? Journalism has changed over the past 15 years to accept this and move the needle even further but at the time it was a contentious issue.

5)  Know everything. I was standing by a TV with Jim once and the ticker was running by at the bottom of the CNBC screen. He started doing a lightning round on every stock going by, telling why each stock was up or down a nickel, a penny, a whatever. He knew every earnings report, every news item that was relevant that day. He doesn’t know every stock (see below) but he does know everything he needs to know for THAT DAY.  Whatever field I’ve been in, I’ve always tried to know everything about the competition, the technology, the subtleties and the nuances of the field. Jim has dominated financial media for 20 years by doing this.

Read the rest here.

Rebuilding TheStreet

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Matthew Flamm of Crain’s New York writes Sunday about the overhaul at TheStreet.com, which includes de-emphasizing co-founder Jim Cramer and changing its name to simply TheStreet.

Flamm writes, “In the past year, under CEO Daryl Otte, it has also downsized Mr. Cramer’s presence on its home page and removed him from the chairman’s seat—moves aimed at showcasing a new editorial team and making TheStreet less reliant on its biggest star. Mr. Cramer has long been both an asset and a liability, since investors worry about what TheStreet would be without him.

“But as the company works through a revamp that began with Mr. Otte’s appointment in May 2009, it is holding tight to one part of its heritage: It relies on advertising for only one-third of its revenues and draws the rest from subscriptions.

“With nearly 91,000 subscribers — most of whom were converted to TheStreet’s premium sites from the free flagship, and who now pay $300 to $5,000 a year — the company can boast that it has long been ahead of its time. Sites that rely solely on advertising have been struggling in an increasingly competitive online market.

“Now Mr. Otte is focused on setting up the media company for growth after two straight years of losses.”

Read more here.

Cramer steps down as chair of TheStreet.com

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Jim Cramer, a co-founder of TheStreet.com and host of “Mad Money” on CNBC, has stepped down as chairman of the board of the financial news site’s parent company.

Cramer will remain on the board, but he’s being replaced as chair by Christopher “Woody” Marshall.

Marshall is general partner at Technology Crossover Ventures, a private equity and venture capital firm with $7.7 billion under management focused on information technology companies. Prior to joining TCV in 2008, he spent 12 years at Trident Capital, a leading venture capital and private equity firm focused on the software, business services and Internet markets.

In a statement, Cramer said, “I am thrilled to be handing this post to Woody, who knows our business well, and I am confident will make an outstanding chairperson.”

Palo Alto, Calif.-based Technology Crossover Ventures invested in TheStreet.com in 2007. According to the company’s most-recent proxy statement, Marshall has been a director of TheStreet.com since August 2009.

Technology Crossover Ventures owns more than 5 million shares, or 15.9 percent, of TheStreet.com, making it the company’s largest investor. Cramer is the second-largest investor, with 4 million shares, or 12.8 percent.

Cramer forgoes salary, bonus for royalty payments

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TheStreet.com founder Jim Cramer has a new, three-year employee contract that began earlier this month where he won’t be paid a salary or a bonus from the financial news site and will instead be paid a royalty fee based on the revenue produced from one of its subscription products.

In addition, the host of CNBC’s “Mad Money” signaled that the deal would be his last long-term employment agreement with the site.

The royalty will be based on the revenue derived from TheStreet.com’s Action Alerts PLUS subscription service that he authors. Cramer also will receive a grant of restricted stock units, which will vest over three years.

Cramer’s salary in 2010 was $1.87 million, although he delayed his pay raise until later in the year. The previous year, his pay was $1.56 million.

“Given the length of this new contract and my current plans for the way I plan to spend my time beyond that, I expect that this will be the last long-term agreement between me and the company,” said Cramer in a statement filed with the SEC back in December. (I can’t find where any media covered the announcement.)  “Although I’d expect to continue participating in the company’s success beyond that in some manner, I’ve made this decision now as I want to be mindful to set the stage for a transition far enough out into the future that ensures the business will be well prepared to continue, from a position of strength, beyond my involvement.”

Action Alerts PLUS is where Cramer tells subscribers what trades he’s going to make – buy or sell – with the funds of his charitable trust, before he makes the trade.  The portfolio in his charitable trust — 100 percent of the profits will go to charity — has consistently beaten the S&P 500 since its inception nine years ago.

The SEC filing can be found here.

Cramer owns more than 4 million shares of the company, or about 12.5 percent. At Tuesday’s closing price of $2.96, those shares are worth more than $12 million.


What Jim Cramer taught me about financial journalism

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James Altucher of The Altucher Confidential writes about what CNBC “Mad Money” host Jim Cramer taught him.

Here are some examples:

2)      Financial Media = Entertainment. Lets not fool ourselves. Jim is first and foremost an entertainer. If you have a TV show where you wear costumes, yell at the screen, throw chairs, and interview guests often in the hope for some laughs then I don’t think anyone would call that anything other than entertainment. Jim has said this repeatedly that he’s an entertainer. 99% of people shouldn’t be buying stocks anyway (this is my opinion) and those that do buy stocks should do their own research.  And Jim’s the best entertainer in the financial media business. Really look at his show and watch what he does. he combines education, with interviews, with six or so different voices (he takes voice lessons, or did at least, to be able to do all that he can do with his voice in a show and not go hoarse after a few days), with stock picks in different industries, call-ins, and even magic tricks (the lightning round, more on that later).

4)      Commentary belongs in Financial Journalism. Cramer changed everything when he started thestreet.com and added commentary from professional investors into the mix. The negative argument was then (and still is) that there is a conflict of interest if someone owns a stock to be then talking about it on a platform meant for serious journalism. But that’s bullshit. Who better to write about a company then someone who has serious resources and used those resources to dig under every rock and uncover as much as they can before putting hard-earned money to work. Journalism has changed over the past 15 years to accept this and move the needle even further but at the time it was a contentious issue.

Read more here.

TV Week's NewsPro lists most powerful players in TV financial news

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The 10 most powerful players in financial news on television were listed in the December issue of TV Week’s NewsPro magazine.

Hillary Atkins writes, “CNBC is, of course, the leader in the field, but it has competitors nipping at its heels, and even some surprising competition at times from television’s longest-running newsmagazine program, ’60 Minutes.’”

In alphabetical order, they are:

1. Maria Bartiromo “the top choice when CEOs want to be interviewed on television.”

2. Bloomberg Television “runs a slate of business shows that explore all aspects of the financial markets, business news and investing.”

3. Margaret Brennan “one of the newer faces making a mark in business television.”

4. Neil Cavuto “an undisputed leader in the world of television business journalism.”

5. CNBC “continues to attract the wealthiest audience in terms of income of any television network in the United States.”

6. Jim Cramer “no one would dispute Jim Cramer’s seriousness of purpose in imparting business and financial information and opinions to his viewers.”

7. Fox Business Network “the new kid on the business block.”

8. Anthony Mason “brings his financial acumen and reporting expertise to the business beat.”

9. “Nightly Business Report” “”covers the biggest stories in business and provides analysis so that viewers can make more informed financial decisions.”

10. “60 Minutes” “at the forefront of covering economic stories in the nation’s heartland and how average citizens have been affected by businesses shutting their doors.”

Read the list here.

CNBC show boosts MGM Resorts stock

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Howard Stutz of the Las Vegas Review-Journal reports Tuesday that shares of MGM Resorts International rose nearly 7 percent after being touted by CNBC “Mad Money” host Jim Cramer.

Stutz writes, “Shares of the casino operator closed at $12.92 on the New York Stock Exchange Monday, up 81 cents or 6.69 percent after Cramer touted the Strip casino giant on his CNBC show ‘Mad Money’ on Friday.

“‘Virtually everything about MGM that used to be a negative is now a positive,’ Cramer said.

“Almost 85 million shares of MGM Resorts were traded Monday, more than three times the average daily volume.

“He added that MGM Resorts’ CityCenter development, a 50-50 joint venture with Dubai World that opened last December, ‘was the poster child for everything that was wrong with Vegas at the worst time.’”

Read more here.