Last October, I got into an argument with Jim Cramer because he asked me to remove my article about how Cramer’s company TheStreet.com (TSCM) was a “Sell” based on the framework in Cramer’s own books (See the emails in “Sorry Cramer … We Will Not Bow Down“). If TSCM was an exception to Cramer’s iron-clad rules because late 10Qs and bailing executives somehow didn’t raise concerns like in every other case, it seems someone more important than both of us is concerned with the inner workings of TheStreet.. the SEC.
“As a result of the need for the Company and its independent registered public accounting firm to focus attention on matters related to the Company’s previously-announced review of the accounting in its former Promotions.com subsidiary, which subsidiary the Company sold in December 2009 — including matters related to the preparation and filing by the Company in February 2010 of a Form 10-K/A for the year ended December 31, 2008, a Form 10-Q/A for the quarter ended March 31, 2009 and Forms 10-Q for the quarters ended June 30, 2009 and September 30, 2009, respectively, and matters related to an investigation commenced by Securities and Exchange Commission in March 2010 — the Company requires additional time to prepare its financial statements, assess its internal controls and file its Form 10-K for the year ended December 31, 2009 (“2009 Form 10-K”). The Company expects that it will be able to file its 2009 Form 10-K on or before the fifteenth calendar day following the prescribed due date.”
OK, Cramer. Now, please explain to me this time why TSCM wasn’t the biggest “Sell, Sell, Sell” stock on Mad Money Wednesday night? I’ve bought all your books and been on your show, so maybe you can explain why every last bag-holder, I mean shareholder, of TSCM shouldn’t liquidate their position and move on to much brighter, less criminally investigated pastures?
As we shake our head at yet another Cramer bomb (as his bankrupt picks are affectionately called by pro traders), I leave you with a legendary piece of Cramer’s journalism (which he spins is out of context because he was talking about Bear Stearns' bank accounts rather than the stock — but “Bear Stearns is fine” means the company “is fine” for both account holders and shareholders, or at least it does to real analysts, independent researchers, and now the SEC):