Saturday, January 28, 2006

Cramer Out of Control

Several months ago I started watching Cramer on CNBC. More so for entertainment than anything else. He has had a few good calls, I'll give him that. I'll also say I have seen him leave huge profits on the table and recommended some buys that were just out right losers.

Recently I find him to be the King of the Flip Flops and his actions on the edge of criminal. Is it just my imagination, or is Cramer now mentioning low float stocks and manipulating them as much as 50% in after hours. Last nights he suggest that NMTI is a $100 stock that is over a 400% move from where it closed Friday. The stock closed at 17.26 on Friday. The After hours trading after his pump started at about $22 and was as high as $25. Realistically the best anyone got filled on his call was up 27% at $22. I cant wait to see where it finishes next Friday and to see where Cramer puts it on his list of weekly performance. He will Use 17.26 as the basis for his call when in reality his viewers as of last night are in at $22 or higher.

NKTR Nektar Therapeutics

On January 19, 2006 Cramer was bearish on NKTR and said to sell. The stock had since run from $19.37 to $22.25 yesterday. Cramer was wrong again by almost 15%. What does he do yesterday at 3:30, he makes an off the cuff comment to sell NKTR and to say that their management was no good. What is Cramers motivation here? Is he upset that he was wrong on the 19th? Did Management Snub Cramer and refuse to come on his show? Did Cramer get burned and lose money on NKTR on a previous trade?

Nektar stands to receive up to 150 million a year in Royalties on sales alone on Exubra in its collaboration with Pfizer. Does that sound like bad management to you? It sounds to me like Cramer has an Agenda.

Sounds like Cramers call when he told everyone to sell PLAY in the mid 20's that it was no good. Well look at it now. It hit $33 yesterday.

Cramers show is prerecorded. Who knows Cramers plays before hand? I want to understand how the Market makers and the sellers know before any buy orders get executed to pull their sell orders and to raise their ask.

I'd love to see the SEC do an investigation into who has been buying Cramers picks before they are mentioned on CNBC and to see who is selling after they are mentioned. I am willing to bet that if they looked close enough they will identify a handful of players or hedge funds that are consistently in ahead of Cramers show and out shortly after. I will not be surprised if in the near future we find Cramer in the same position that Thom Colandra found himself in.

If you would like to see the SEC investigate Cramers Mad Money Picks sound off and post some comments.