Jim Cramer is a genius yet, he sucks. Jim Cramer picks winners but, he also picks losers. Jim Cramer knows this is a good investment although, he is clueless on this stock. Jim Cramer is pumping and dumping. Jim Cramer is helping friends that want the stock cheaper while helping friends that already bought. Jim Cramer has friends that short and long. Jim Cramer said don't bet against Mel then, said congress will screw up the deal.
We have heard all of these over the years. One minute Jim Cramer is your hero, the next, he is blithering fool. This is where the success of Jim Cramer is found. Getting attention from anyone and everyone no matter what his stock calls are. The fact of the matter is that Cramer gets a lot of attention. Some argue that his picks become self fulfilling prophecy simply because he is branding a stock good or bad, and thousands of viewers buy or sell on what Cramer says. Like him or hate him, Cramer garners attention.
A bit over a week after Cramer declared the merger a virtual shoe in, and a Sirius as a double, with minimal downside risk, Cramer reversed course and went against Sirius today citing congress as the stumbling block. The reaction was predictable. The people that loved him last week hate him this week. The people that hated him last week now love him. There is simply no happy medium with Jim Cramer.
Realistically, Jim Cramer is an entertainer that has amassed a following. There are several web sites on line that have tracked Cramer's picks, and in August 2007, a study by Barron's found that Jim Cramer's stock had consistently underperformed the Dow Jones Industrial Average. CNBC responded that Barron's was looking at the data incorrectly, but Barron's found that even when the data was measured using CNBC's metric, Cramer still had not performed better than the market.
So, can Cramer move a stock. Yes. Is it wise to know if an equity you are invested in is on the Jim Cramer radar screen? Yes. Should you follow his picks? Some say a coin flip is just as accurate.
Position - Long Sirius, Long XM