Cramer Article at Forbes.com

[Gordon Gekko]

May interest you:

http://www.forbes.com/work/2005/08/1...819cramer.html

[deepinwonder]

Very interesting article. Didn't know about those callers, but that is the most boring, staged part of the show and think they should do away with it, anyway. Yes, a lot of people got hurt by his bad calls, this week, and unlike what some people are saying... those of us who held onto our energy stocks did NOT ask for it and we're NOT stupid. ;)

He will earn back my respect if he acts like a man and shows up with sticky notes all over his head, this evening. Only way out is through, no excuses, boo yah.

[Thierry Martin]

Excerpt from the Forbes article mentioned above:

Financial Services
Funny Money
Peter Lattman, 08.19.05, 6:00 AM ET

NEW YORK - Aug. 2 was a lackluster day in the trading of high-flying tech stock Syneron Medical. It barely budged, dropping a mere 9 cents to $40.85. After-hours action also looked blasé until 5:33 P.M. EST, when "freedompartner" posted this on Yahoo!: "Cramer said buy ELOS before earnings: Just finished taping the show. He loves ELOS." The message referred to market pundit James Cramer and his wildly successful CNBC show, Mad Money.

Syneron (nasdaq: ELOS - news - people ) began moving higher and trading picked up. That night on Mad Money, which CNBC tapes from 4:30 P.M. to 5:30 P.M. EST and broadcasts from 6:00 P.M. to 7:00 P.M. EST, Cramer indeed touted Syneron's laser products' ability to smooth away cellulite. "I am sticking the proverbial neck out" and telling you to buy ELOS now before earnings, he exclaimed. The stock spiked to $45.46 in after-hours trading on volume of 300,000 shares.

What happened? Apparently someone called Mad Money during taping for the Q&A segment, heard the tout while on hold and disseminated the information on the Web before the show aired, against CNBC's admonition.

A taped recording warns callers that they will hear the show and must agree to not disclose or trade on information discussed prior to that information being mentioned during the during the 6 P.M. airing. "This is extremely important," counsels the recording, "and if you cannot abide by this rule, please hang up now."

Transgressors can, of course, ignore the instructions, remain on the line and spread Cramer's picks. Should that happen, says a CNBC spokesperson, that person "would be banned from participating in all future programs, and the network will consider appropriate legal action based on the specific facts involved."

As it happens, viewers who bought ELOS got burned two days later. Syneron's earnings disappointed, and the stock fell back to its earlier level. On Thursday, it was trading at $36.83.

full article here

[optimus25]

Great article. It goes to show to everyone who invests that it is important that you do your own research. Its your money, don't trust anyone's word but your own.