Jim Cramer's Unnecessary Beating Over Sirius 77 comments
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I would like to address the criticism that Jim Cramer has received concerning Sirius Radio (SIRI). On the surface it might seem to the uneducated person that he retracted his "buy" opinion after the deal was done and was responsible for sending the price downward. For all of you who think this way, you should be ashamed. I would like to first point out that I own 15k shares of Sirius and have felt the pinch along with everyone else so I have no personal interest in defending Jim Cramer.
But let's clarify a few things here. In the 18 months leading up to the merger, I too listened almost daily to Cramer push, yell, scream, make political enemies, and name names in an effort to tell the world why the merger should happen. In doing so, many people jumped on the band wagon, bought a $3.00 lottery ticket, and envisioned themselves calling their bosses from their cell phone to tell him/her what to do with their jobs while boarding a plane to early retirement on a tropical beach. Admit it. You thought about it didn't you?
Then suddenly after all that time waiting we find out that the merger was going to happen. 3 to 2 vote in favor of it. The next morning the masses were glued to their stock tickers to watch the stock price sky rocket them into financial bliss. 7 am, 8 am, 9am . Where was the pre-market jump? 9:30. Nothing. It is flat. Then we see it slowly go south. More and more. "How can this be possible??" everyone screams. That very same day after the market closes everyone rushes to their TVs and Satellite Radios to listen to Cramer's take on the subject. He'll have the answer for sure. Jim will make everything all right. Then Jimmy boy does the unthinkable. We listen to him retract his opinion on Siri. What?? Not possible!!
What a day, right!? Big money losses and no moral support from daddy Cramer who at the very least was supposed to make us feel better and give us the Rah Rah routine. He was supposed to tell us not to worry about junior's college money and that the stock will go up very soon. But that didn't happen, did it? "So who do we blame now?" Everyone asks. I know , let's blame Jim Cramer for turning on us! It is his fault! How could he do this to us! Let's threaten to kill him. Witch Hunt! Witch Hunt! Witch Hunt! Get the torches!!
Everyone who actually believes that garbage needs a deep, deep reality check. Here is the reality. The refinancing caused this. No one, not even the mighty Jim Cramer, knew about the bond financing until it was released to the press. It was because of this that the stock went south. If you wish to place blame for the condition of the stock, direct it toward the real culprits - the FCC. They are the ones guilty of delaying this merger to the point where the companies were hemorrhaging too much money and made it necessary for Mel Karmazin to make that kind of a loan shark deal. It was a no-win situation for Mel. Was it the right decision? Only time will tell.
All Jim Cramer did was give the world the truth. No sugar coating, no rubbing on the tummy saying "it's going to be all righ,t honey". Just the hard truth the moment he heard it from the press. His opinion was not a catalyst for the stock going south, it was a reaction to the direction of the stock after it was already going south. The FCC was the the cause. The bond deal was the reaction. Period.
And let me say one final thing. If a person has so much money tied up in one stock that it would cause him or her to lose sleep or make death threats, then this person has no business investing without an advisor. Get smart, get educated. Then come back to the table. This is not your parent's game room. It is real life. Act like an adult and deal with it.
Disclosure: Long SIRI.
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This article has 77 comments:
If someone shows me one analyst that actually knew how the CCU/FCC game would be played and what was needed in terms of financing to make this happen two years ago then maybe I'd consider them an "analyst". Let's face it, the FCC hates SIRI because it's content is not under their jurisdiction so that alone was reason for them to stall until the companies almost went under, then at the last minute, pull out of the mix by approving the deal so that no one could really take the blame. Any analyst with real knowledge of how the political process works should have predicted this from the get go.
The experts are all JFO's and the deal makers will continue to keep it that way unless at a minimum the SEC does something to stop back room shorting in private and require public daily (ie. free, non-subscription based) disclosures of major investment bank / mutual fund activity. Why for example is a GS analyst allowed to trash a stock and at the same time have GS able to buy it? Because the entire trading system is rigged against individual investors, Cramer et. al are just clowns to amuse and scapegoats to keep the eyes off the real crooks, who by the way, mostly are not US citizens and have no names. If it weren't there would be complete and separate analyst coverage and an aggressive SEC oversight of all opinions to look for kickbacks to sponsors and interested parties.
"No one, not even the mighty Jim Cramer knew about the bond financing until it was released to the press."
OK, now, the key concept here is if you DON'T KNOW about a pretty important variable then why in the world would you give it a rating either way.
He should just have a show on theory and what to look for in a strong stock ready to explode upward....not give stock suggestions on his gut feeling or opinion. MAKE the watchers do their homework.
Why in the world would you tout a penny stock with a horrible balance sheet???
You in fact have your facts wrong.
Pre-merger, Cramer said SIRI was speculation at best.
Pre-merger, Cramer did call out the FCC for being bought and paid by the NAB.
Post merger, AFTER the debt structure was announced, he called SIRI a lottery ticket.
You should not be in the market if you think Cramer had any influence on the debt financing structure.
The story Gino mentions is spot on ... I wondered what happened ... I was traveling .... once The Street found out about what even Mel K calls an ugly deal, it was over.
Mel came on Cramer's show and admitted that he hated making the deal he made, but he HAD TO because he was worried the NAB was going straight to court to file against the FCC.
[ED: Comment edited to remove abuse.]
people these days. These regular people are very smart
and can figure out when someone or some entity is
sticking it to them. These regular people also have some
very effective ways to communicate to others. Cramer,
the FCC, the NAB, some of the meddling politicians,
the Fool, and GS hurt us for their own dark agendas
and we know it.
"Everyone in here I hope has at least a diploma or G.E.D. equivalent so you should be able to spell at some degree."
Shouldn't that read:
"I hope everyone in here has at least a diploma or G.E.D. equivalent so you should be able to spell at some degree."
"Everyone in here, I hope, has at least a diploma or G.E.D. equivalent so you should be able to spell at some degree."
"Everyone in here I hope has at least a diploma or G.E.D. equivalent so you should be able to spell at some degree."
- Spelling: A+
- Grammar: F
Cramer is justly being attacked and discredited. And his comments were post-merger approval, but before the merger was consumated. Look it up.
[ED: Comment edited to remove abuse.]
Perhaps you should go back on vacation, because you have no fiking clue what you are talking about. Mel said it himself, you loser.
Can you please dance and shout like a monkey on fire
Tomorrow I will strongly consider all of your shows
material just before the rest of it gets flushed.
I think you're the one who should be ashamed for your naiveness. Cramer was pumping SIRI till the day it was obvious that Tate was voting in favor of the merger. This guy was simply tipped by his hedge fund buddies that SIRI was about to do a toxic financing and just wanted to make himself look good by resorting to flip flops which should be attributed to his "hidden agenda." Cramer should be investigated and by the way, here's A Look Back At Some of Cramer’s 2008 SIRI comments:
Thurs 3/27/08:
Cramer says BUY
JJC: It is a merger together. SIRI made the proposal. SIRI has got the management team. I believe, by the way, that this stock is way undervalued. I see a lot of people worried that the FCC is not going to do it. People have to understand that, when you have one car company putting one system in, and another car company putting in another, then you’re not going to make money. But, if all 16 million cars have Sirius and XM in them together, that company’s going to make a ton of money…
4/25/08
Cramer says BUY
SIRI - This is now 67 days and 1 year that they have not approved this. I mean, now they’re starting to talk about… It’s pretty clear they want to stop this deal… I am telling you this deal is going to go through. I still think, that when it goes through, you’ve got a $5 stock… But we must keep writing the FCC! We can’t let them off the hook! We can’t let them be just completely… I’m trying not to say, in bed… I’m trying not to say, in the pocket of… I’m trying not to say, owned by terrestrial radio… So I’ve eliminated all those possibilities, and let’s just say that I think the FCC’s behavior raises eyebrows…
Price target if the deal is approved: $5.00
5/7/08
Cramer says BUY
SIRI - There are going to be some earnings soon, but let me just tell you something… I have had it! I want everyone to go to the FCC’s website, and that meeting, and say, enough!… It’s an outrage! My take is SIRI should be bought! I’ve been sticking with that the whole way! There’s only one government organization standing in between what 18 million consumers want. What are they doing? What is this? Is this some sort of top secret thing that has to be blocked? I don’t get it!…
6/16/08
The Bottom Line!: Commissioner Tate… Our nation turns its lonely eyes to you… we’re banking on you. I ask you… Should we be forced to only have terrestrial radio?… Or can we let Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio (XMSR) combine, so that consumers can have a choice between free commercial radio… filled, of course, with commercials… and paid commercial-free radio. I’m betting this deal goes through, and I maintain that, together, Sirius and XM will be a powerhouse. Maybe not immediately, but soon. And, somehow, I think the merger will be more consumer friendly than that terrific Exxon/Mobil combo, which sailed through antitrust without much of a problem.
Wed 7/23/08
On The XM Satellite Radio (XMSR) & Sirius Satellite Radio Inc. (SIRI) Merger…
JJC: One year and 156 days of course, much longer than it took to combine Exxon with Mobil, I mean it is crazy… Now, I will tell you this… I thought that the additional things they had to do weren’t that bad… They did miss the 2008-2009 automobile season and the bill for cars so much lower… This is going to be a powerhouse… Be careful, they have to refinance, the common stock is going to be diluted, but I think as a spec, why the heck not?… I have to tell you that I think your information, and I hate to contradict you because you’re wonderful and fabulous, but the anecdotal that you just gave is different than the empirical evidence we just heard from XM, where the churn has gone down dramatically as a percentage basis… I’m stuck with the facts… I always hate to let the facts get in the way of a good story but the facts do indicate that people like the product… Here’s an anecdote for you: I have Sirius in one car and XM in the other because I like major league baseball and football, but I would not take it from me that that’s what most people have… I’m a Phillies fan too…
Fri 8/7/08
During an interview with a street.com reporter, Cramer claims SIRI needs to be a lot higher than $1.50 and calls the stock and its CEO an OUTPERFORM!
I hope to see your response sooner than later.
if i was driveing down a narrow road , and there was a rat on one side, and cramer on the other, id swerve to miss the rat!
It was not Kramer who made the choice of stock to purchase. It also will not be Kramer who will lose money either. So act like adults and stick to making a decision and take it like the adult that you are.
Did you people NOT read the disclaimer at the start of the show.
You should have done the research before buying.
Do you buy everything the television sells?
Would you like to buy some swamp land on the moon. LOL!
For weeks others have warned the price of siri will drop.
Many of you blew it off as some kind NAB conspiracy!
Man up and blame only yourself for the losses.
YOU Bought it !
YOU took the risk!
YOU live with the out come !
If you are truly long & think this company is worth something, Why look the the price of Siri everyday & bitch ! Wait a year!
2 years
or
3 years.
LOL!
In defense to those who have actually listened to Cramer, we have all been the sucker before at one time, let it be a lesson that you should not listen to him anylonger. As for Gino's defense of Cramer, good for you that you wrote this article, you are the better man, I applaud you, you did what Cramer would have never ever done, the right thing and even without any thing for you to personally gain.
Gino, you are great!
Cheers,
Jetsen
Why are some of these mutual funds buying FRE and FNM? Is it because you can't naked-short them and they are buying positions so they can short the stock? Ideas?
So anyway, some seem very naive about the stock. Just because you have satrad in your car does not make it a good investment.
Wow, death threats. Maybe you do have to be insane to own this stock. :-). Just kidding.
Caused poor financing deal???????? Are you an idiot or someone who just doesn't think before he speaks?
What happened to my comment? Don't make me post it again.
I see that you now can edit off the ones you really don't like.
EXCELLENT
Will you be getting a new haircut?
Ripped.
Cramer needs to go to jail and meet bubba in the shower.
Why can't anyone blame Cramer if he has a show that's supposed to "help the small investor?"
I mean, what is his contribution to society if his claim to fame is biting him in the ass?
Helping the the small investor?!?! PLEASE!!!!
I'm soooooo glad I stopped watching his circus...I mean show...years ago!
I just can't believe he's even still talking about Sirius.
good luck to you all.
He's an idiot, not a true investor!
I wonder if Warren Buffet watches Mad Money. LOL
Ok, now I'm done.
Good luck to you all