5 Reasons to Sell TheStreet.com

According to transitive logic, Jim Cramer recommends selling the stock of his company TheStreet.com (Nasdaq: TSCM). In his books, Cramer says to dump stocks when executives depart suddenly or companies miss their filings. Therefore, once The Street “failed to produce their 10-Q filing for the second quarter” and executives started jumping ship, an honest Cramer would have been forced to “Sell, Sell, Sell.”

If you are looking for supporting evidence to dump your TSCM shares, here are a few strong data points:

1. The Street has sunken so low as to offer stock picks from professional psychics;
2. The Street is losing key executives and board members faster than the Phillies knocked out the Dodgers;
3. The Street’s great stockpicker Lenny Dykstra went belly up (and not sliding into home plate);
4. The Street’s last go-to guru, Doug Kass, has an incredibly questionable track record for RealMoney subscribers (See “Buy the Financials. Yes, Buy” January 2008, and Doug’s schizophrenic Twitter stream of picks (e.g., April and May 2009) which contradict his jumpy calls and articles; and,
5. Jim Cramer’s true value has been proven in Barron’s and he was waterboarded while (not) debating Jon Stewart.

Looks like the circus may be leaving town..

Comments

[SouthernBea...:]

Good Article

Oct 26 09:43 AM

[jsampson:]

I wouldn

Oct 26 10:09 AM

[tresspass:]

very apt, very cool. YES. especially Kass.

Oct 26 10:09 AM

[Tony Roberts:]

I would not be shorting or selling this stock. Cramer is easy to knock but the site's traffic is way up, a lot of new advertisers on the site and the newsletter sales are good and improving. The company also has a lot of cash and is not going away, has hired a lot of new top people, has new and very credible directors and should have the accounting issue cleaned up shortly.

Oct 26 10:24 AM

[Michael Comeau:]

Hmmm, I'm surprised you guys didn't pick up the Ron Insana shenanigans:

www.longshorttrader.co...

Oct 26 10:25 AM

[John Mylant:]

The Psychic thing really got me.

I don't know if suddenly the network wants ratings or what but what for the love of Pete are they thinking? They are playing with people's money here. Going to a psychic? Oh-- and thanks for the $500 an hour explanation. That makes this psychic totally on the money. I would never beleive a $300 psychic, but $500-- you'd be crazy not to beleive him. If people are jumping ship it is because they know that they will be marked for life as amateurs staying with an organization like this!

John Mylant
mylantsmoneyblog.typep.../

Oct 26 10:57 AM

[Happy4LA:]

I was a long time subscriber... and really had figured out Cramer years ago, but still remained as I thought I could use his influence to make some money. However, he's so disingenous and takes credits for his "wins" and hides his losses. He truly is a clown, despite his intelligence. I don't know what his motivations are, money or attention. Because the tactics he uses definitely don't bring him any respect. The Jon Stewart interview and Lenny Dykstra incident on HBO when he tells everyone what a genius Lenny is, should have been enough to take Cramer away for good. But he remains somehow. I guess there are more people for him to fool.

Oct 26 01:04 PM

[nougatine1:]

Cramer's just want to sell his book!!!!
And for example...Considered VVUS as Speculative!!!!
CVM...was a BIG Story...Like NVAX...INOVIO...
OK for AGEN...But for me there will have a big rebund...let's see "Earnings at the endof this week...."
And the big problem is he speaks and he convinced of the logical of his argments...Like AF...And I speak about my sector...(Biotech...). They don't know everything....(AF and Cramer...)

Oct 26 01:09 PM

[yo momma:]

This was obviously written by one of the shorts who was worried as the stock was rising. No fear, the stock is plunging again.

But to your points...

1. Psychics....might be silly, but you clearly have no idea how the internet works or what drives traffic and ad sales. You should stop investing in web properties as you clearly don't get them like most analysts.

2. You are about 6 months late on this news. It is already factored into the stock price.

3. Dykstra, old news still and certainly not affecting the valuation of this stock. Come on, you can do better than this.

4. Doug Kass. Personally I think he does not have the first clue what he is talking about...but then that appears to make him a lot like the writer of this blog post.

5. Barron's holds a personal grudge against Jim Cramer. Should that be considered in the value of TSCM? Maybe a little, but that is also really old, and not affecting the company today.

Seriously people, this is little more than "psychic" advice for investing. At least TheStreet is honest about it when they are being stupid.

Oct 26 10:19 PM

[Satwaves:]

Bought a bottle of champagne and will pop that cork when they file for bankruptcy. I will no doubt be popping it in the not too distant future.

Oct 26 11:05 PM

[Hester:]

I do not know if the stock will go up or down from here, and I'm certainly not going to invest in it. However, I can tell you that the company will NOT go bankrupt any time soon, unless you consider 10-30 years soon. Traffic is way up, and they have more advertisors, as was previously stated. They have a clean balance sheet, they are in a fine position right now and who really cares if they have some execution mistakes. It is obviously not affecting their followers. All of that is currently reflected in their stock price, as previously stated. The daily show fiasco was last winter, Cramer has bounced back big from that, and he still has a cult-like following. He also appeals to new young people, so there are always new people coming in. They are not going away any time soon.

The good news? The longer your champagne sits, the better it gets with age. So at least one of your investments will work out.


On Oct 26 11:05 PM Satwaves wrote:

> Bought a bottle of champagne and will pop that cork when they file
> for bankruptcy. I will no doubt be popping it in the not too distant
> future.

Oct 27 01:08 PM

[cassandra1:]

Cramer is a shill for hedgefund short sellers and along with feurstein (biotech) deserve to go to
jail with their buddy Bernie Madoff for conspiracy, racketeering, stock manipulation, and naked shorts. I have seen them both trash good stocks time and time again for no good reason. Its too bad because the show is entertaining and a lot of people watch not knowing what he does.

Oct 27 02:19 PM

[ddmunds:]

Satwaves, ahead of ya, already had my champagne with the cork half off, with a big smile on my face.

HOPEFULLY SOON!!!

> Bought a bottle of champagne and will pop that cork when they file
> for bankruptcy. I will no doubt be popping it in the not too distant
> future

Oct 27 05:19 PM

[KJP712:]

How does a company go bankrupt when it has no debt?

Oct 27 11:19 PM

[ddmunds:]

Hey Thestreet.com I thought Scott Rothbort said your guys destiny was in bankruptcy court?

Oct 28 02:13 PM