Cramer vs. Fox Biz

The amusing media tussle between CNBC/Cramer and Camp Murdoch continues to ratchet up. Today's article in the NY Post seemed to indicate that Cramer was going to settle up on his losing bet with Eric Bolling, and cut a check:

Cramer, through a spokesman, blamed his loss on Federal Reserve Chairman Ben Bernanke's failure to cut interest rates more aggressively.

"The bet turned on Jim Cramer emphatically calling for the Fed to ease rates. The Fed didn't follow Jim's advice, and as a result he'll be happy to write a check to the charity of Eric's choice," a spokesman said. New York Post

Cramer is having a bigger meltdown than the market, and firing back:

Eric let me out of the bet a long time ago when I realized the Fed knew nothing. I offered to pay any way but he wouldn't hear of it given that he thought I had saved people a lot of money by turning on the financials. That was left out of the story. By my count this is the 15th straight negative article about me in the Post. Maybe I am due for a positive ... NOT! Real Money

The bet clearly ambushed Cramer, and if he wants to go double or nothing, with new picks, fine by us. Of course, a 12-month holding period might be the death of him, given how often he zig-zags.

Meanwhile, an exodus of staffers from TheStreet.com has tongues wagging. The company has long sported a revolving door policy, but departures seem to be on the uptick due to a Grinch-like compensation scheme that apparently only enriches the directors. I generally appreciate the product, and the efforts of their rank and file, but an odor is starting to waft around downtown, and it ain't from the hot dog vendors outside the Big Board.

“Apparently [CNBC anchor Jim Cramer’s] TheStreet.com isn’t doing so well. In the past two months various editors and reporters have been jumping ship, and they have yet to give out any end-of-year bonuses. Some senior editorial staff didn’t receive any annual raise, while other lower-paid employees received just below the standard of living percentage increase.” Sour wine grapes! Jossip

Of course, the austerity measures don’t extend to the boardroom. Director Jeffrey Sonnenfeld, the consulant/corporate governance expert, just exercised options that put a cool $178k in his pocket, with another chunk due, pending a sale:

A director of online financial news provider The Street.com Inc. exercised options for 25,000 shares of common stock, according to a Securities and Exchange Commission filing Monday.

In a Form 4 filed with the SEC, Jeffrey Sonnenfeld reported he exercised options for the shares Dec. 11 for $2.93 apiece, and then sold 16,200 of them for $13.93 apiece. AP

Has Nell Minow ever weighed in on the company’s governance? Just askin’.

Sonnenfeld could buy of lifetime of NutriSystem meals with that haul; it would also pay the annual salaries for a half dozen writers, given the stinginess at the publication. He made the money fair and square, but this is not the type of news that inspires the troops that are being fed scraps.

The media sniping is not likely to end, at least until Fox Business and Cramer get their ratings up. Although Fox’s issues are well known, they will get a free pass for a few more months. Cramer’s Mad Money has issues, however. The show is certainly amusing, but the ratings are suffering given how thin Cramer is spreading himself. Just this week, he ‘s been on the Today Show, Imus and The Apprentice. 

The question is why?  If he’s so popular why are the ratings so soft?  CNBC’s Mad Money is scratching in the core demo.  Wednesday night, only 45,000 people between the ages of 25-54 were watching Cramer at 6pm (he had nearly 200,000 viewers) .  A scratch is defined as not meeting minimum reporting standards for Nielsen; CNBC program’s will scratch below 51,000.  If you need to get his picks and pans you don’t have to watch the show, just punch up one of the many websites that chronicle his recommendations.

But the media battle is as interesting as any battleground in a stock, and Cramer’s soundbites are priceless.

“We have a competitor now in Fox and it is really important to destroy and mutilate them.”

“If you want to lose half a billion, in the end someone will watch,” he says.  “If your orientation is not to make money and you are as stupid as wood, you’ve got your station.” Broadcasting & Cable

Global stock markets have shed $3 Trillion in market cap to start the year. Surfing the net, and reading about Cramer’s exploits, might be time better spent than trying to pick a bottom. At the rate we are unraveling neither network will have any viewers left by the end of the quarter.

And if that is not enough, the new movie Mad Money, starring Diane Keaton, Queen Latifah and Katie Holmes, and featuring a cameo by Cramer, is getting poor reviews:

“We’ll pay top dollar to erase this comedy from our memory. D+
Chicago Tribune, Matt Pais

______________________________________________________

‘MAD’ JIM CRAMER LOSES GOLDEN $50K BET
New York Post

Apocalypse Cramer?
Jossip

LEFT COAST BIAS: Jim Cramer Joins Apprentice, Vows to ‘Mutilate’ Fox Biz
Broadcasting & Cable

One More Time

----------------------------------------------------------------------------------------------------------------------
The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Positions

Comments:

<< Back to main