Tuesday, February 06, 2007

Cramer Is Mad!

Cramer hits Sirius two nights in a row. Here's what was said...

Feb. 2: Sirius (SIRI - Cramer's Take - Stockpickr - Rating): "You know that stock ain't going anywhere. ... I want you to sell it nine ways to Super Bowl Sunday. "

Feb. 5: Sirius Satellite Radio (SIRI): 'I've given up. I recommended this stock on the basis of takeover, which you should never do. I violated all my own rules ... the fundamentals don't support it.'

And here's why...
On Nov. 6, 2006, after a string of bearish calls on Sirius, Cramer had Mel on his show, turned the corner, and issued a "buy, buy. buy" on Sirius.

(In case you missed it, the link to the video replay is Here)
Cramer's 'Mad Money' Recap: A Vote for Stocks
By TheStreet.com Staff 11/8/2006 8:01 PM EST
Next, Cramer evaluated Sirius (SIRI) and spoke with CEO Mel Karmazin. Karmazin said SIRI could be free cash-flow positive in 2007. Cramer: SIRI is going up, it's done treading water and is a Buy.

Then, in December of 2006, Sirius reduced their subscriber count from 6.3 million to 5.9 to 6.1 million, and Cramer got egg on his face and issued this commentary on his blog:

Jim Cramer Blog A Miss Is Still a Miss
By Jim CramerRealMoney.com Columnist1/2/2007 4:06 PM ESTURL: http://www.thestreet.com/p/rmoney/jimcramerblog/10330226.html

So Sirius (SIRI) did do more than 6 million subs. So the lowered range was hit, and the stock could go up a few pennies.
Recall a month ago, when Sirius was at $4 and change because it was supposed to do 6.3 million subs. That's when Mel Karmazin lowered the boom and took the range to 5.9 million to 6.1 million. Today's announcement hits the midpoint.
Yes, Sirius was cash-flow positive. But you know what? It doesn't matter. A miss is a miss, even as you hit the new targets, and I don't think that Sirius can recover its momentum without a merger.
Bottom line: Cramer feels duped. He had Mel on his show, told his viewers to BUY Sirius. Shortly thereafter, Sirius announced disappointing subscriber numbers, Jim took the heat, and now, he's getting back.

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2/06/2007 06:34:00 AM

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