I was unpleasantly surprised over the weekend to see that once again Yahoo (NASDAQ:YHOO), which claims to be a credible and relevant news and search engine, appears to be complicit in the bidding of one of the most vile financial companies (in my humble opinion) known to investors. I am talking about Jim Cramer’s own “Thestreet.com.” As we have seen over the course of this past year, any time specific companies gain headwind, in this case Sirius XM Radio, old or simply negative press items conveniently get recirculated from the same conspicuous sources. This categorically fits what former hedge fund manager Jim Cramer himself has called “fomenting” to elicit a specific market response.
Any way you look at it, it is unethical to release old or tailored news at critical points in a company’s history to affect a specific stock reaction. Those who have followed Sirius XM Radio recognize this technique all too well. When the source of these “bash” articles are timed closely with specific events to damage a company, and that same source has historic ties with the hedge funds that benefit from a downturn in the company’s stock (while your average retail investor will watch his investment suffer), experienced investors will tell you there is no coincidence.
Recent news about TSCM suggests that not only are they a shady source of news with no credibility, but perhaps also involved in manipulative practices with certain stocks on the markets. There are also strong questions about their accounting methods. Certainly they are the kings of negativity as far as Sirius XM Radio (NASDAQ:SIRI) shareholders are concerned, continually hammering the company at every turn. Their video from early last week somehow was picked up again by Yahoo only yesterday in time for a nice Sunday bashfest. We wouldn’t want investors who were busy during the week to have to search for negativity, would we? Once again, Yahoo, without validating their news content, makes certain that it is sitting in plain sight on their financial Sirius XM Radio page with a nice link.
The story doesn’t end with Sirius XM Radio, however, not by a long shot. The Street was also named by Overstock.com (NASDAQ: OSTK) CEO Dr. Patrick Byrne several years ago as a practicing manipulator of equities, and Jim Cramer was outed in many ways by the Overstock CEO’s fight against Wall Street manipulation. In fact, an entire website, Deepcapture.com (http://www.deepcapture.com/), sprung from that investigative masterpiece of reporting and I applaud Judd Bagley and others who really dug deep. Reading at that site is like reading a who’s who of miscreants on Wall Street.
Recently, on March 17th to be specific, came news that the SEC was investigating The Street.com for issues with how they recorded revenue as seen in this piece of news:
“Investment news website TheStreet.com Inc. said yesterday it was being investigated by the U.S. Securities and Exchange Commission (SEC). The company, founded by Wall Street trader and television personality Jim Cramer, right, made the announcement in a form it sent to the SEC where it asked for more time to prepare its financial statements. The probe, which is related to how revenue was recorded at a subsidiary called Promotions.com was launched earlier this month. Website Zerohedge.com first reported the news. A spokesman for The Street.com declined to comment on the investigation. The probe arose after the company announced on Jan. 25, 2010 that it was restating its financial results for 2008 and 2009 due to “certain inaccuracies” at the Promotions.com unit. Credit for this piece and more about this situation can be found here: http://www.nationalpost.com/scripts/story.html?id=2695278#ixzz0m9T1yAjv
Even more recently on April 6th, the following news came out:
Generex Launches $250,000,000 Lawsuit Against TheStreet.com and Feuerstein
11:30a ET April 6, 2010 (GlobeNewswire)
Generex Biotechnology Corporation (NASDAQ:GNBT) (www.generex.com), the leader in drug delivery for metabolic diseases through the inner lining of the mouth, today announced that it has commenced legal proceedings against TheStreet.com, Inc. and Adam Feuerstein in the Supreme Court of the State of New York seeking $250,000,000 in damages for business defamation, product disparagement, and injurious falsehood. The claims arise out of articles authored by Feuerstein and published on TheStreet.com website on March 19 and March 26, 2010.
Generex contends that the articles disseminate numerous defamatory statements about the Company, its management, and its flagship product, Generex Oral-lyn(TM), and that the articles put forward several ostensible statements of fact that are, in truth, misleading or outright misstatements made with malicious intent or with a reckless disregard for the truth.
“These articles go well beyond the expression of disparaging opinion or fair comment,” said Mark Fletcher, Generex’s Executive Vice-President & General Counsel. “Feuerstein and TheStreet.com have abused their public forum by spreading categorical falsehoods about Generex and Generex Oral-lyn (TM) when a modicum of due diligence would have revealed the truth, an injury then compounded by unfounded and libelous allegation and innuendo. We are now seeking to hold Feuerstein and TheStreet.com accountable for the damage they have unjustifiably inflicted on Generex and its stockholders.”
It is my intent to notify as many people as possible to be extremely careful about what they read and who they believe with regard to financial news. Jim Cramer is no friend to the common investor, in my opinion. While he may indeed have a solid if unspectacular track record making picks on his silly television show MAD MONEY, Jim Cramer is part of the problem and not the solution. A video of Cramer was pulled from youtube in which he described Hedge fund activities, but here is an excerpt from an article describing his flippant attitude toward market manipulation (once again, he calls it fomenting) when he was managing a Hedge fund:
The interview, described methods including tactical buying, shorting or using options to create an impression in the market that could prompt other traders and investors to buy or sell a stock.
“A lot of times when I was short at my hedge fund … meaning I needed (a stock) down, I would create a level of activity beforehand that could drive the futures,” said Cramer. “It’s a fun game and it’s a lucrative game.”
Cramer, host of the popular CNBC television show Mad Money, described tactics that could be used to drive down technology stocks such as Research in Motion (NASDAQ: RIMM) or Apple Computer (NASDAQ: AAPL.) to make them cheaper to purchase later. In the interview, Cramer said a hedge fund manager’s favorite tactic is to get a rumor about a stock to an unwitting reporter — at the Wall Street Journal or at his current employer, CNBC — and hope that it moves the stock in the direction the manager wants.
Cramer said some tactics are “blatantly illegal,” but sometimes essential for poorly performing hedge funds. Cramer said if a market participant wanted to get shares of a company like RIM lower then he should first get investors “talking about it as if there is something wrong with RIM”.
“Then you call the (Wall Street) Journal and get the bozo reporter in Research in Motion and you would feed that (rival) Palm’s (NASDAQ: PALM) got a killer it’s going to give away,” he said. “These are all the things that you must do on a day like today and if you’re not doing it, maybe you shouldn’t be in the game.”
“It might cost me $15 million or $20 million to knock RIM down but it would be fabulous because it would beleaguer all the moron longs who are also keying on Research in Motion,” said Cramer.
He also said the SEC does not understand some illegal activity.
The rest can be read at the following link:
http://www.reuters.com/article/idUSN2036292620070322
Suffice it to say that all is not always what it appears to be in the financial markets. The key to making money has a lot to do with knowing who really is on your side. From my perspective, The Street.com and co-founder Jim Cramer are two things you should avoid if you want to make money in the market, but then again…sometimes its best knowing who is involved in misinformation, what the other side of the trade is planning, and how certain financial institutions and news services operate.
Disclosure: Currently long SIRI, no positions in RIMM, AAPL, PALM or OSTK or GNBT
Another masterpiece! Well done. The message is to inform. Received.
Fight FIRE with FIRE. The fight continues…………..
Thank you Steve.
It is unethical and again the timing of these articles and previous analysts reports at pivotal times in a company’s history has to be questioned. I don’t think there is any doubt that the stock price is trying to be manipulated for gains.
I bet most of the longs have sent information at one time or another to the SEC, I know I have,I just wish they would act.
Thank you Steve for questioning the timing of these articles.
I can only hope that the correct moves that SiriusXM has made will hold the over $1.00 pps for two more days.
vaporgold
Excellent article, Steve! This is an obvious attempt by Cramer and The Street to re-release this video with only two days left to spoil SXM’s latest run to meet compliance. One does have to wonder if this just the opening salvo of articles that is being coordinated with an attempted short attack to insure closes below 1.00. Lets hope Mel comes out with some more good news today. Saw last night that Google picked up this re-release last night too, but don’t see it there this AM…good for them if they removed it….but still on Yahoo…
I found it quite interesting after posting several comments after their recent bash articles that I am now banned from posting comments at the street.com. It seems my attempts to set the record straight with the authors started to gain traction with readers as my comments were always agreed with by the readers almost always leading the way in positive “thumbs up” votes. I guess since so many people agreed with my comments that they were left looking quite defeated by Sirius investors comments leaving the authors looking like fools therefore knowing that I would respond to every bash attempt they just decided to blackball me from the site. When it comes to Censorship this just shows you the crooked ways of Wall Street with the King of Crooked “Jim Cramer” leading the way. Deep Capture and Patrick Byrne had it right all along.
Good Article. I have owned SIRI since I bought it for $0.17 a share…and I have made a killing! Not just for some quick cash appreciation but I have had Sirius Satellite Radio in my car since day 1–simply because it’s a fantastic product whose time has come.
To me [and millions of other Americans] the idea of pay radio without the commercials is something we are never, ever going to be without. It is evolving just like cable tv did in the 60′s and 70′s. By the way, the naysayers then said people would never pay to watch TV. Yeah, right.
With the improved vehicle sales, inroads into new vehicle lines, establishment of new platforms [cellular, video, etc.] and Mel Karmizan’s adept leadership [I am a retired 'radio guy' who thinks Karmizan is truly a visionary with a great track record]–I can’t see how Sirius can fail.
For several years now I’ve listened to the “Cramers” of the world predicting Sirius’ demise… I for one am betting Sirius will be around long, long after Jim Cramer’s star has vanished.
In fact, I think I’ll go buy some more SIRI stock today. Happy listening!
Great article. Did anyone else see that burly, corrupt, evil ape Cramer on CNBC the day that the Goldman Sachs Real Estate debacle was announced? There was a gentlemen on there that had accused Cramer of still being involved with GS and the duplicitous practices of the firm. It was so funny to see him get angry, and defensive to the charge of fraud and manipulation. Of course, gutless CNBC shortly thereafter cut off the guest. But there was Cramer defending himself and GS, despite both of their actions being a crime againt common shareholders, and burgeoning businesses. What I find truly dispicable is that thestreet.com has cost thousands of people millions of dollars, and in some cases, their lives, due to their stock bashing and manipulation, destroying biopharm companies, and medical cures in the process. These people are evil to the core. Cramer is the equivalent to a financial Hitler, a genocidal stock market tyrant.
Steve, you write excellent articles that I would like to quickly share with other folks through my twitter account. You folks may want to look into putting a retweet link button at the top of the articles. This would allow folks to quickly tweet these articles that would quickly spread the word about the excellent info here at KOAT. Anyway, fwiw
Steve,
Awesome article. Did you also see the Motley Fools Rick Aristotle Munariz headline today April 26th, 2010.
These people need to go to jail. Thanks for pointing it out here at http://www.Kingofalltrades.com I like the stories you guys are writing. Pure facts, not misleading false fear mongering stories and false headlines like the Motley Fools, Street.com, Jim Cramer or CNBC. Keep up the great work.
I also have a great story that is about to hit the newspapers today. Hoping you will cover it. You will be able to find the story on my web site. http://www.SiriusNews.com Search around to blog, twitter etc. etc. It will be on my web site within the next few hours. I also have your web site on my Main web site page as it is great to be linked to writers that are seeking out the real truth in their reporting of the facts. Again Thank you and I hope you help me spread the word. Together we can make a difference.
Richard Keane ( AKA ) The Referee
http://www.SiriusNews.com see blog, twitter, etc. etc.
John Stewart from “The Daily Show” took Cramer to task when he had him as a guest on his show. He showed that video of him talking about stock manipulation while he was interviewing him and Cramer squirmed and looked like an ass. Stewart really put it to him! CNBC should have canned his ass then. He comes off so humble and friendly, but he’s the “Poster Boy” of what is wrong with Wall Street and the main media. Hey “Morning Joe” get some balls and call him to task the next time he’s on your show. You saw the clip from Stewarts’ show, you just keep on kissing his ass, just because he is in the NBC stable. Joe you are a sell out!
Ban Hedges = they deliberately cornering the satellite radio market, the housing market e.t.c.
No country can survive in dishonest stock market, because millions of mutual funds shareholders has no way to fight single hedge fund manager with billions of dollars at his disposal and a few mouth like Street.com or Cramer who yell “fire” in the cinema and work in cahoots, and drive the price of shares down, while company wait for merger approval. If they don’t care about the country, about technology, about the only Satellite radio, BAN and no sorry. You can’t tell people to invest 401K, in stock market, in MUTUAL FUNDs(who can’t shorting the stock) and watch them be decimated by Wall street Hedge funds(shorting). If nobody invest, we are finish. Innovation, new technology take years to develop, to be destroy by some hedge fund managers using panic buttons of “CramerS” and others, and forcing little guy to be at their mercy, and impacting people in droves to sell. All this was design to corner the satellite market and pocketing money with lie and fear mongering. The damage is colossal to consumer and the country. The money is stolen. King of all trades is right 100%.
Zora1
Fantastic article. This should be sent out to all writers who bash companies with nefarious intent.
Great article! Everyone who has an audience should be writing about the way “TheStreet” has used unethical and most likely illegal tactics to ruin a company. I do not own SIRI, but I do own GNBT, and Adam Frankenstein outright made up his own “facts” to do harm to this stocks price.
I do not know if Cramer had anything to do with the GNBT articles, but as owner he is responsible for the articles on his site. To make things worse, he did not even issue a statement or fire Frankenstein! Adam Frankenstein was even allowed to write another article bashing GNBT and defend his first article. I know I will never read another article from “TheStreet”.
I have frequented your posts before. The more I learn, the more I keep coming back! ;-P