Jim Cramer May Have Crossed A Line
As expected, Jim Cramer has come out again to bash Sirius XM and its shareholders, on the heels of three separate positive analysts reports this week that included Citigroup, Stifel Nicholas and Barrington Research.
In this latest attack, Jim may have finally opened himself up to a lawsuit, as he outright lies in some of his assertions, which I will explain. You can’t get sued for an opinion, but you can get not only sued but prosecuted for spreading false rumors about a company, which in my opinion, is just what Jim Cramer has done. Let’s highlight this statement of Jim Cramer:
“But more important, this quarter is a disaster for Sirius as is the next one because the deal came too late to salvage the Christmas retail selling season and the fall auto season. Missed ‘em both. Brutal.”
Breaking this down we can easily find all the flaws and fear mongering of this statement. He claims this quarter will be a disaster for the company. In a way, that may hold true as there will probably be merger related costs that cut into Sirius XM earnings. That is of course only if the synergies announced do not materialize in time, and we can see that cost cutting continues to be a priority of the merged company.
His next claim that approval came too late to salvage the Christmas selling season could not be farther from the truth. Besides the company already announcing that new radios will be in stores by Christmas, there is also the open access provision mandated by the merger which allows just about anyone to enter the retail satellite radio market with their own branded offerings. This will not only increase retail subscribers but will also result in lower costs as these radios will not be subsidized by Sirius XM.
His most outlandish claim, and the one that may end with Jim Cramer in a courtroom, is the outright lie that Sirius XM has somehow “missed” the 2009 OEM model year. The fact is that the companies are continuing to operate separately as XM and Sirius in regard to the automotive channel. Nothing has changed. OEM installation rates of SDARS have continued to increase. There has been no slowdown in this regard nor will there be. In fact, the target remains at 70% penetration for the 2009 model year. The OEM’s benefit from these installs and as such are doing whatever they can to increase their unit profits.
Should new radios be introduced, manufacturers will conduct a “running change.” This occurs frequently in the manufacturing process when parts changes occur due to such things as component problems or supply issues. A worse case scenario would mean that 4″ wiring harness adapter would be needed to install a different radio than the one already prepared for, and wiring harnesses with a new radio connection would then be used to make the process seamless.
Of course Jim also had to rehash the refinancing issues of next year, completely ignoring Merrill Lynch’s assessment that at most the dilutive results of complete refinancing in a poor credit market would only result in 17% dilution as a worse case scenario. Again he fails to mention that Merrill Lynch’s Jessica Reif Cowen says this is very unlikely, and instead operates under his own agenda. 17% from 1.35 for instance is 1.12, yet Jim insists the stock would go below a dollar. He also seems to overlook S&P’s recent upgrade.
At this point it is clear that Jim Cramer intends to cause substantial harm to Sirius XM and its shareholders. The proof being that the comapny has offered guidance following Labor Day. Yet Jim insists on doing whatever he can, including lying to bash the stock lower before the company’s conference call which of course he again fails to mention, to drive the price lower.
Also, despite Mel’s interview with Cramer acknowledging that there will be no reverse split, Cramer again comes out and makes a case for it. I would bet that right now, Sirius XM attorneys are preparing the paperwork necessary to bring Jim Cramer to justice.
Position: Long SIRI, Short Jim Cramer
Cramer is just mad because his ratings are going down. He failed to realize how many people that were invested before he came on the stage, and got invested in SIRI on his recommendation. He killed his own ratings, by the way he acted before and after. He over estimated to the up side. Then over acted and insulted the investors that he got to invest in SIRI on his word. Plain ans simple, he is now mad at the people that are tunning him out.
I have own stock in Sirius for 5 years,and love the product.I believe everything in you ariticle except that he will be sued.
Mel states that his last move to make the merger was necessay because of time. He had lots of time so I don,t buy this. His bonus far exceeds any purchase of stock, and I hear no out cry from Mel. He fails to keep us informed as we continue to lose money.I always like Mel but I think we have been used. He should have walked away.
The whole thing is crazy. But I guess the battle lines have been clearly drawn. Goldman Sachs and Jim Cramer on one side….Citigroup and MOST others on the opposite side.
Which side are you on? If you’re long like me…you don’t have to think about it.
And thats what it comes down to. Who do you believe? I’m with Mel and the great service and technology that is Sat radio. I have great confidence that in the not too distant future, SiriusXM’s growth and profits will SHUT UP the critics and cause the shorts to scramble for cover.
In the meantime, it’s a waiting game. The next few quarters should make everything clearer.
Does anybody else find it odd that Cramer is spending so much time on a stock worth a buck and change? And what about taking his own advice and “doing your own research”. If he was really doing that, then wouldn’t he wait until the labor day conference call to see what the immediate plans of Sirius XM is? Until then no one can say if this stock is worth one dollar or ten dollars.
bravo dude I sure hope so just to shut that mouth of his
Jim is a castrated lamb. GS and his employer are Jim’s puppetmaster. Jim hasn’t one original thought in his bald head. Jim is trying to stay relevant, that’s all. Traffic to his site is down, viewership is way down and he’s pretty much wrong all the time.
I equate Jim to the monkey that is tied to the popcorn stand and dances when told.
It doesn’t matter…it a 2-3 year process. At that time its a $6 stock or the equity is gone. He is correctly playing the window of time game. I think Mel makes it work.
Cramer is a showman and bad news sells. I think it is going to be very difficult to paint Cramer’s irresponsible diatribes as anything more than the rantings of a lunatic intended as “infotainment” (oh, how I hate that word).
I applaud your work and even though we may not always agree, as this case shows, you are still one of the saner voices giving me news I can use and for that I thank you. Keep up the good work.
For all of the talk about giving Cramer a break, it is clear that he is digging his own hole to crawl in to. He could have been neutral and waited for the next couple of quarters to play out, but instead he takes an aggressive leadership role in bashing the stock and with it, the investors he talked into buying. Even the “Converts” he said that are a better deal are not available, unless you buy Goldman’s worthless 2-1/2% paper due in Feb. 09.
At Schaeffer’s Investment Research site, the amount of “short” interest, charted over the last month, since Cramer’s flip flop and Winkes new SP target, go hand in hand. The comparison is dramatic. Comments by Cramer tied to shorting activity are a direct correlation. Short interest way up, Cramer bashing way up, stock price down. Nice job Cramer and the shorts.
I am a long and hope that Cramer is dealt with in the court of law for his outrageous positions on this stock and company over the last year.
Brandon,
We all know a company’s stock price is simply its report card — in case of SIRI, the company’s getting an F as in failing its shareholders.
All eyes are on Mel now and if he wants to have any credibility left and keep an image that is not going to be completely tarnished he needs to make sure that he does whatever necessary to assure both Cramer and GS are wrong. You don’t go on national TV and accuse an analyst of a wrongdoing, or simply put, being a crook, since you believe he’s working for a bunch of shortsellers in a hedge fund or two. If SIRI goes to $1, Cramer and GS will have won regardless of what happens to the stock thereafter. GS will cement a popular belief that he’s the most influential analyst on the street when it comes to SIRI and the rest of the guys (Merrill, Citi, S&P, Lehman, Stifel Nicholas, Barrington) are left behind to eat his dust and they simply don’t matter.
Again, Mel’s credibility and image are on the line and he and the comany need to everything possible, and doing it immediately, to make the guy who Mel called dishonest and crook on national TV is the not one who’ll have the last laugh.
I think it’d be a great idea for you to write an article on how importnat and crucial it is for Mel and Sirius that they’ll say whatever is needed to be said on conference call after labor day to make sure Cramer and GS won’t turn out to be right on their predictions for a dire situation/condition the SIRI stock is in and going to be in. I wonder how all those analysts with their favorable ratings on SIRI will feel and react if in fact Cramer and GS get what they want?
I wouldn’t watch Cramer if I knew he had a great tip. He has lost all credibility with his 180 flip/flop. I always knew it was just a TV show. I only watched to get more info on the merger. Better to listen to SIRI Classical or sports. He can’t even classify as a ‘reality’ show now.
If there ever is a class action suit pertaining to this event, please count me in for support.
Thanks,
Glenn
Hey RC….it was within Mel’s right and as he said “HUMBLE OPINION” that Weinkes was a biased basher. After 18 months in merger limbo with his hands tied and UNABLE to defend himself or his company from the likes of Weinkes….I say GOOD FOR HIM.
I’m glad he called that guy out. As well as jabbing Cramer for singling out the ONE analyst out of 20 who was bashing the combined companies prospects. It’s not a question of Goldman Sachs being “RIGHT”….they are MANIPULATING the stock plain and simple and Cramer had EVERY RIGHT to call him out.
Even tho we aren’t in merger “limbo” anymore the debt refinancing and short term quiet time while Mel rallies the troops and reorganizes has given the shorts and bashers and extended short term environment to continue their game.
But as Mel lays out guidance and trims fat and starts rolling out new product and services that highlight the synergies of the combined company….there will be a significant shift in balance between the bashers who have gone unchecked for too long, and the investors who believe in the company.
I look forward to these next few quarters.
Oops sorry. I meant to say MEL had every right to call Cramer out above.
frigginregan,
Don’t get me wrong. I kind of liked and admired what Mel did (throwing dolls at Cramer, I personally wish Mel had thrown the books) and said (GS analyst’s involvement with shortsellers). Now, since Mel talked the talk he better make sure he walks the walk too.
SIRI has to support the stock price no matter what it takes and there’s no two ways about it.
Brandon,
YOU just pulled a Cramer!!!
(And, you know what I mean…
for others: read Brandon’s last post on Cramer and my comment, and his response to my comment…in any event, Brandon, glad to have you back on the enlighted side).
Stop listening to Cramer. He quit running a hedge fund to become an entertainer on CNBC. That should tell you something!
People need to do their own homework, and turn off the pundits, be they political or financial. They are wrong more than they are right.
Brandon,
The following is for Cramer, not you:
Cramer, you’re an @$$…
appears that the siri shareholders are not listening to you and GS, and you are upset that the stock is not going to $1 as GS, and you apparently, want it to go.
you, cramer, are really digging a deeper hole for yourself here, once again, with your own stupid comments…can’t you just stfu.
You, Cramer, fail to utilize a cost/benifit analysis.
Okay, Cramer, some of us may have listened to you and BOUGHT Siri, and have now lost a couple bucks per share…(and, in many cases, it adds up to thousands and thousands, and in many cases, tens of thousands of dollars)…
However, Cramer, worst case, assuming the stock went worthless, we the Siri investor would only lose another $1.32 per share…bfd, we, the Siri investors, have already lost a couple bucks per share, what’s another buck here?
but what about the upside? let’s assume citibank’s analysist is correct, and we get a $6.50 share price…we, then make (or make back) over $5.00 per share!!!
and, what makes you, Cramer, think that the stock will be lower after February…You, Cramer, thought it would be a $5 or $6 stock upon the merger, (watch copies of your show and refresh your memory, and to make it easier for you, they are all over the internet and YouTube.com), and obviously (as you can see from these tapes) your track record on this stock sucks.
Cramer, you should just stop giving advice on this stock, as your advice sucks.
Check out what Cramer JUST wrote on his website. And I quote: “No matter what I do or say, this stock remains the stock of the people. In fact, they should give you some stock when you buy a Sirius radio. Maybe a 10 share rebate.
Regardless what I tell people — that it took too long for the FCC to vote, that the two companies lost almost a billion dollars while the regulators dallied — they don’t want to sell.
And I couldn’t disagree more.”
OH REALLY CRAMER??? IS THAT SO?? Notice how Cramer is not only saying DON’T BUY now…he is saying SELL. You’re right Brandon, Cramer HAS crossed the line.
How can he say this with a str8 face? He recommended the stock with a BUY right up until the merger and even AFTER the merger when he started bashing…he said it was a POWERHOUSE and said NOTHING about selling.
It can no longer be denied. Cramer is at war with this stock, and I can’t wait for him along with Goldman Sachs to get burned.
He was the BIGGEST friggin cheerleader of this company and soon as they get the deal done he does an about face??? I always knew Cramer was a BAD actor…but this is ridiculous. He isn’t even TRYING to hide his TRUE motives.
How can he have believed in the company SO much just days before the merger and now be SO against it? He is bending and cherry picking the facts to suit his new opposite view.
SiriusXM will OWN the radio media car market…and suddenly he is siding with his old bosses at Goldman? While almost EVERY other major firm is positive on the merged company going forward? LOL. Hmmm.
It’s not only for myself and all longs, but I REALLY want to see Mel turn things around more than ever now just so we can ENJOY Cramer eating crow later.
Cause you JUST KNOW that when SiriusXM turns this around and the debt issue becomes moot, and the upgrades start coming and the stock price starts rising….YOU JUST KNOW Cramer will come out and find some clip that shows Cramer saying the company is a “POWERHOUSE”…and that he predicted it ALL ALONG!
We can’t let him backpedal! I want to see his face rubbed in it.
But seriously. Who gives a F@*K?
The BEST revenge is just seeing the stock go up. 🙂
Aside from MSO which worked like a charm – the significant pop and the predictable tumble, Cramer’s picks lately are not getting the pops they used to get. Consider three recent picks CSCO, WFC and HD all stayed relatively flat after Cramer’s pump.
This morning’s early SIRI slam would have cost at least a nickel last week, but shows no effect today. Shorts are covering and fewer and fewer are taking Cramer seriously anymore.
I think people are getting Cramer fatigue.
The “Cramer Effect” or “Cramer POP” is not working anymore. People are taking a CONTRARIAN view to what he says now.
Call it the “CRAMTRARIAN” effect. Lol.
If Cramer speaks ANY truth, it’s to DO YOUR OWN homework!
frigginregan, Dont worry Cramer will pay in the ratings and with his show. Cramer over estimated his popularity and under estimated SIRIXM popularity over his own.
rc, The fact is, hitting the price target is not what makes a analyst intelligent or right. It is what he says about, why the target gets reached and if that comes true or not. The fact is Mark W. of GS. has been more wrong then right by far on those issues. As for Cramer he has been wrong on many things, why he still has the viewers he has is beyond me.
I doubt SiriusXM will go after Cramer. However, Sirius and XM investors COULD and SHOULD file a class action suit against Jimbo. Brandon, can we vote on that?
Merger Supporter:
Ask and you shall receive…New Poll
https://siriusbuzz.com/forum/showthread.php?t=696
Brandon,
I am sure you recall my opostion to your defense of Cramer in an earlier article. You claimed that he had never said to sell the stock and I asked you to read between the lines. Well, he’s saying sell in plain English now –in addition, he has lowered his price traget from $2 to $1 and to below $1 this morning. Again, I am just happy that you have finally realized this bozo has a hidden agenda and cannot be trusted. Period.
Thanks Brandon.
In Brandon’s defense Cramer didn’t say sell when he wrote that article. But it is clear Cramer is saying that now. Cramer has little by little gone from completely BULLISH about a company he supposedly loved to COMPLETELY BEARISH with little to warrant such a complete flip flop.
I have to say this. The problem with Cramer is NOT his flip-flop on SiriusXM. People are free to change their minds based on available data. The problem is that he revises his own history.
If he droped the price target becuse of valid metrics, convertible release or any other reason that is fine. The fact is that he says he’s been yelling and screaming SELL SELL, which is simply inaccurate.
Changing his mind is fine, but he loses all integrity when he flat out lies…
I really don’t care what Cramer says anymore. Infact, I haven’t watched his show since the night of the merger. I’ll never watch it again and I’ve barely watched CNBC since then either. I’m done with that asshole Cramer and CNBC. I will not watch them, nor will I listen to them on Sirius any longer.
Yea it’s kind of funny a couple weeks ago Cramer was saying how he was sick of everyone talking/asking about Sirius…and how they should stop talking about it…since then he has released at least 3 video clips/articles solely about Sirius…it’s really funny he is just getting frustrated the stock will not go down any further. I found that especially funny when he said “No matter what I do or say, this stock remains the stock of the people.” You can just sense his frustration. I hope GS and/or whatever hedge funds shorting SIRI that are telling him to bash it are giving him something good in return, because he’s ruining his own reputation.
And by the way: What does he mean about this quarter and next quarter being a disaster? Here are some things to take into consideration:
1. NFL traditionally boosts SIRI and should help add a few “best of” subscriptions..Bottom Line: Increase Siri value
2. Synergies WILL be realized THIS Quarter..Bottom Line: Increase Siri Value
3. Credit Evaluation will increase Sirius XM’s credit rating eliviating some of the refinance concerns..Bottom Line: Increase Siri Value
4. Dumbed down product; consumers will be less likely to try to figure out which product is better, only to chose an Ipod. Bottom Line: Siri Value Increase
We all know of the last few disasterous quarters. They were solidly based on poor performance in the profit arena. I can’t understand why Jim doesn’t take a wait and see approach. There are so many positive aspects of the company that even when coupled with the poor performance aspects has a bottom line of positive potential.
The bottom line. We are looking at $2-3 by christmas based on fundementals leading technicals and a real break out a few years down the line when individuals realize that they will never get in at a buck thirty again…
Brandon writes:,
“Position: Long SIRI, Short Jim Cramer”
How do you short Jim Cramer? I want in.
First of all i would like to say i am long on siri. But i think all you people so hard on cramer are dead wrong. The guy has been right on the money so far. We all are long because we believe the company will do well in the future. But his opinion is based on the facts we have right now. Brandon Mathews is a column writer lucky if he is making fifty grand a year. Cheering and trying to will this thing up.Doesn’t work that way on wall street boys.Stockholders have no power at this point and won’t until the bondholders say so. Not a minute sooner.You can’t expect Cramer to cheer about this garbage. At the moment thats what the balance sheet is.
And one more thing. Really wish brandon would stop writing these fluffy little articles every day and then posting them like they are real company news. Maybe its not Cramer we need to watch out for after all.
cramers biggest response to his ,now , bear position, when asked is , the company lost over a billion during the nasty fcc. etc. merger. think about it. do you think they lost a billion during his,”buybuybuy” and his now “sellsellsell”!!?? this money was lost in 2 months? i dont think so. another words , this money lost was ok 2 months ago (he must have known or he dosent do his homework) but its not ok now? my opinion, cramers a parrot and gs tells him what to say…….actually…i think a parrot has a far superior moral conscious!
Brandon Maybe you could write an article alerting investors about the Conference call next week as I didn’t know there was one. This would be a good article for seeking alpha and I suspect shorts will want to cover before the market close on Friday and traders/investors would be smart to add as I’ sure CEO mel will have some very bullish remarks that will give drive the share price up. Maybe we’ll get above that $1.50 level & head for $1.75 range next week.
anyone familiar with a cnbc complaint hot line or website? also, anyone checked out the new fox buisness channel?
Gary, your assertations would be believable if, like the poster above mentioned, there were new developments. There were NONE! He went from buy buy buy, to sell sell sell with no change, other than positives for the company. He changed course not on fundementals because we knew everything except for the release of shares to finance the merger. Where the hell did everyone think the money was going to come from??? So if a layman like myself could foresee the release, surely a pro like Jim would have.
Gary, you are dead wrong in your defense of that weasle. I don’t mind losing money on a company I believe in, but I do mind someone saying he has been saying sell sell and no one will listen, when just a few months ago he was SCREAMING buy…
I hope Tyler and Brandon are cool with me posting a link, but I think it is very import.
Many people have seen this but if you haven’t it will definitly open your eyes…If its against the tos to push this info please delete the post (thanks)
http://www.youtube.com/watch?v.....nkZ3eHeXlc
a must!!! the website in the post above left by matthew.
There is another one where he calls on the FED to not lower interest rates and actually said they should not be concerned with the stock market. And I’ll paraphrase him, if the stock market drops 1000 points, it should not be a concern to the Fed. Just a quarter or two later he blasts them for not making a move. He actually says that he saw it coming and was begging them to do something.
That destroyed his credibility to me. Yea…I was a huge Cramer fan until I actually started doing my homework….on Cramer..
I wish you would use your Sirius Buzz blog as a way of directing the opinions of the many lazer focused on the people that can do something about it. You have great insights, great articles, and yet you seem to only direct them at us who can do nothing about it. How about doing something like sending Mel Karmazin & the SEC all these articles with the responses you actually get from investors and subscribers like us, that might make a real difference.
Will..
I have…
Thank you Brandon, I hope my respect for your talent and ability is the main take away here. I only challenge you because you actually have talent and ability and are using it well. I just want justice for the many legions of shareholders that just got hosed by Jim Cramer’s collusionary attack with Goldman Sachs to naked short SIRI into the earth or bankrupt. Jim Cramer has crossed the line, you hit the nail on the head bigtime, and one day justice will catch up with him.