February 3, 2006
Cramer's Darling RHEO Tanks...
Posted by Jason R. Job
I first must admit that I am somewhat of an addict of Jim Cramer's tv show "Mad Money." I have been known to run home in order to catch an episode instead of doing other things. However, I feel that I get more out of the show by watching Cramer's performance and listening to some of his investing tips rather than listening and trading on his stock picks.
Today, OccuLogix (NASDAQ: RHEO) reported that its late phase trials of its Rheo procedure failed to reach its goals. As a result, OccuLogix is trading down $8.50 or approximately 66%. I remember paying special attention to Cramer's discussion on this stock in early January (1/12/06 to be exact), because I am a shareholder of OSIP which makes a drug for wet age-related macular degeneration, while the Rheo procedure was supposed to treat dry age-related macular degeneration. In his discussion, Cramer touted the market share which could be obtained if this Rheo procedure actually worked. However, when OccuLogix reported that the Rheo procedure was unsuccessful, it topped the list of Cramer's worst picks.
Now, I know that Cramer has been trying to be more open about not purchasing stocks on a so-called "Cramer Pop" and to use limit orders. Additionally, Cramer constantly reminds viewers that you must do your homework before investing in a stock. Nevertheless, when Cramer's picks have days like today, I am just waiting to see the first lawsuit brought by a viewer who lost large sums of money based upon Cramer's stock picks. I know that there are disclaimers before the show begins; however, I am always distracted by Jim's head spinning with a countdown on his forehead, so I have not had the opportunity to read all of them. But, I am sure that at some point someone will attempt to sue Cramer; it is just a matter of time.
Update: Tonight on Mad Money, Cramer did mention that he screwed up his choice of RHEO. Being typical Cramer, both his bobble head and he had post-it notes on their forehead with RHEO in big black letters. Cramer also apologized and mentioned that he was not always correct. Unfortunately, other than his choice of Dick's Sporting Goods back in August of last year. (see related post Mad Money Makes Some Mad).
TrackBack URL for this entry:
Listed below are links to weblogs that reference Cramer's Darling RHEO Tanks...:
If I was the owner of the largest(by far)company in an industry(LCaV), I might know a little about my major competitor's(TLCV) largest investment (RHEO). If I did know, it would be perfectly fine if I bought the competitor's stock and financed my company with it's increase in price. It might look bad if I was buying RHEO. RHEO's announcement of their MIRA-1 FDA study and the next step, (because there was an anomaly in the control group which has been linked to sabotage) is to be announced on March 9th. ------ Found this on a RHEO site. Both TLCV and LCAV up big in after hours trading.
Posted by: Craig | Mar 5, 2006 7:28:37 AM