Sumner Redstone, the executive chairman of both CBS (NYSE: CBS) and Viacom (NYSE: VIA), has been having a difficult time during the recession. Because of financial pressures, he's been forced to sell stock assets to cover some of his debt problems. Now comes word that he's jettisoned his controlling stake in Midway Games (NYSE: MWY).

Redstone, according to The New York Times, divested himself of his Midway investment. And what a miserable investment it was. If you've followed the story of Midway Games at all, you know it's been nothing but a loser. Losses, revenue declines, and questions about the quality of the publisher's software pipeline seemed to always plague the earnings reports.

Redstone's stake was once worth $700 million. Know what he sold that stake for? $100,000 plus the assumption of debt valued at $70 million. Talk about a lousy loss. Midway just couldn't compete against the likes of Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: ERTS). You've got to wonder what Redstone saw in the company.

Continue reading Sumner Redstone sends Midway away!

Sumner Redstone sends Midway away! originally appeared on BloggingStocks on Tue, 02 Dec 2008 10:40:00 EST. Please see our terms for use of feeds.

In my recent travels I was flipping through channels in my hotel room and came across James Cramer's Mad Money show. I could not believe my eyes; I think Cramer was lying down on the floor, hugging a Sponge Bob Square Pants doll. Did anybody else see that? Was I imagining?

This is a guy I used too look forward to hearing on the radio. He spoke with callers and discussed their portfolio's and how to diversify, offering solid advice to those interested in learning. I used to get in email discussions with Cramer years ago when he had the time to answer emails. This is a guy that had plenty of interesting ideas, and I know he still does... but I did not hear any that day. He went on to make some glib comments about a few stocks and took some calls but I found it entirely unwatchable after ten to fifteen minutes. I was amazed and bewildered. He backed up nothing that he said with the slightest depth of thought. Instead I witnessed him stab the doll with a knife and throw the mutilated doll across the room. Funny? Entertaining? Not to me ---- how sad I thought. This must be the end. He has gone wacko for ratings.

In Hollywood they have an expression they use when a television show has run out of ideas, They say "it has jumped the shark". This comes from a Happy Days episode, the long running TV show, where in one of the last shows Fonzie was surfing and jumps over a shark. You knew it was over when you saw that. Well that is the feeling I had when I saw Cramer curled up with Sponge Bob. He has jumped the shark! It's all over, and it is ironic that it came to pass that a creature of the sea was involved again.

Perhaps I'm wrong? Maybe I'm too serious? Has he gone too far? Is this necessary in a show about investing?

Check out my other posts for BloggingStocks here.

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm.

Has Cramer hit bottom with Sponge Bob? originally appeared on BloggingStocks on Mon, 19 Feb 2007 16:20:00 EST. Please see our terms for use of feeds.