On May 1, I wrote about the news that TheStreet.com (NASDAQ: TSCM) had dumped Major League Baseball player turned pseudo options expert Lenny Dykstra.

Now The New York Post chimes in with more disturbing news about Dykstra's financial affairs. Dykstra has total debt of around $50 million and isn't paying up. He's being sued by a cavalcade of former business associates who claim he never paid them for services performed, and he even allegedly convinced a flight attendant to put a $10,600 flight on her credit card for him and then failed to reimburse her. He's being sued by his literary agent too, who says Dykstra never repaid him for money he lent him.

Continue reading More bad news for Lenny Dykstra

More bad news for Lenny Dykstra originally appeared on BloggingStocks on Sun, 10 May 2009 18:40:00 EST. Please see our terms for use of feeds.

Continue reading TheStreet.com dumps Lenny Dykstra

TheStreet.com dumps Lenny Dykstra originally appeared on BloggingStocks on Fri, 01 May 2009 17:00:00 EST. Please see our terms for use of feeds.

Obama Picks: Building an "Obama Stock" portfolio originally appeared on BloggingStocks on Wed, 05 Nov 2008 16:52:00 EST. Please see our terms for use of feeds.

Now, we just let the government own big stakes in banks in return for money and a pledge that they won't hoard it but lend it.

The European plan is simple: Give money to the banks, take shares back, and start the process over. If you graft that on the American plan to allow banks to sell bad real estate loans then you get a fighting chance to stabilize the system.

This scheme is a heck of a lot better than all of the little things that Fed Chairman Ben Bernanke has wanted to do to keep banks in business, and it also gives the banks a bridge before TARP kicks in.

Of course, it is pure socialism, so I suspect that somehow our government will screw it up in the name of laissez-faire free-market principles. But we are way too far along to quibble. I also expect that it will be perceived as a bank bailout, to which I say, again, "So what? We have spent more than a trillion dollars trying to avoid one and that hasn't worked."

Continue reading Cramer on BloggingStocks: A fighting chance for the credit markets.

Cramer on BloggingStocks: A fighting chance for the credit markets. originally appeared on BloggingStocks on Mon, 13 Oct 2008 12:06:00 EST. Please see our terms for use of feeds.

Continue reading Lenny Dykstra: may have been busted by Forbes

Lenny Dykstra: may have been busted by Forbes originally appeared on BloggingStocks on Thu, 12 Jun 2008 16:44:00 EST. Please see our terms for use of feeds.

David Einhorn's picks and pans originally appeared on BloggingStocks on Mon, 26 May 2008 14:32:00 EST. Please see our terms for use of feeds.

The Associated Press reports that CBS Corp. (NYSE: CBS) is buying CNet Networks Inc. (NASDAQ: CNET) for $1.75 billion. This $11.50 a share deal is a 45% premium over Wednesday's closing price

CNet's Web sites include News.com, TV.com, Mp3.com, MySimon and GameSpot. And CBS expects to use CNet to tap into the Internet advertising market. This deal raises the question of whether any CBS competitors will decide to get into the game of buying Internet content companies.

Here are three possible targets:

• TheStreet.com (NASDAQ: TSCM) - This provider of business, investment and ratings content has $65 million in sales and a market cap of $236 million.
• TechTarget (NASDAQ: TTGT) - This provider of online content for buyers and sellers of corporate information technology (IT) products has $95 million in sales and a $531 million market cap.
• WebMD Health Corp (NASDAQ: WBMD) - This provider health information services to consumers, physicians and other healthcare professionals, employers and health plans has $332 million in sales and it's market capitalization is $1.7 billion

I think traditional media companies buying Internet ones could become a trend. It would only take two more such deals to make it one.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

CBS to buy CNet: Who's next? originally appeared on BloggingStocks on Thu, 15 May 2008 08:35:00 EST. Please see our terms for use of feeds.

Continue reading Lenny Dykstra, stock market expert?

Lenny Dykstra, stock market expert? originally appeared on BloggingStocks on Thu, 03 Apr 2008 16:38:00 EST. Please see our terms for use of feeds.

TheStreet.com (NASDAQ: TSCM) is recently down 5 cents to $10.75. In December 27, 2007, TSCM hit a seven-year high of $16.74.

James Cramer, a director and a beneficial owner of 1,904,003 shares and 1,754,538 indirect shares, sold 30,000 shares at $12.58 on January 15, 2008.

TSCM March option implied volatility of 71 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options update 1-23-08: TheStreet.com volatility elevated at 71 originally appeared on BloggingStocks on Wed, 23 Jan 2008 15:14:00 EST. Please see our terms for use of feeds.

Continue reading TheStreet.com (TSCM): My holiday gift to you

TheStreet.com (TSCM): My holiday gift to you originally appeared on BloggingStocks on Thu, 20 Dec 2007 15:55:00 EST. Please see our terms for use of feeds.

TheStreet.com, Inc. (NASDAQ: TSCM): A volatile market must have helped this company. Shares jumped to $16.23 against a 52-week low of $8.20.

ShengdaTech, Inc. (NASDAQ: SDTH): Got approval for a critical patent. Jumped to $10.56 from 52-low of $3.55.

C.R. Bard, Inc (NYSE: BCR): This company predicted a strong 2008 at an analysts meeting. Traded up to $91.65 from a 52-week low of $76.61.

Archer Daniels Midland Company (NYSE: ADM): Archer moved up on news that the government would make offer incentives to biotech companies. Rose to $41.70 from a 52-week low of $30.20.

Douglas A. McIntyre is an editor at 247wallst.com.

The 52-week high club originally appeared on BloggingStocks on Wed, 19 Dec 2007 17:36:00 EST. Please see our terms for use of feeds.

AOL, Yahoo! and Google rule comScore originally appeared on BloggingStocks on Tue, 20 Nov 2007 18:43:00 EST. Please see our terms for use of feeds.

Reading through TheStreet.com's ratings this weekend, I came across something interesting:

Nutritional and personal care products developer USANA Health Sciences (NASDAQ: USNA) has been upgraded to a buy from a hold. Its revenue increased by 16.9% in the third quarter compared with the same period last year. Earnings improved to 70 cents a share from 55 cents per share over the same timeframe.

The company's return on equity improved to 184.53% in the third quarter compared with 78.97%, a signal of significant strength within the corporation. This return on equity greatly exceeds that of both the industry average and the S&P 500. USANA Health had been rated a hold since August 2007.

All of that is true and, as investors, we all know that a company that can earn high returns on equity is a wonderful thing indeed. If you don't believe me, take a look at the writings of Peter Lynch, Warren Buffett, Bill Miller, and just about any other great investor.

But at some point, a high return on equity becomes a red flag for fraud and/or an unsustainable business model. Can a company's management/business model be so amazing that the company can earn returns many times greater than industry peers or that market as a whole -- without any particularly important patents or competitive advantages to speak of? Does TheStreet.com really think that a ROE of 184.53% is sustainable? Are Dave Wentz and Gil Fuller (Usana's President and CFO, respectively) really more than eight times as good at deploying capital as Warren Buffett?

I somehow doubt it.

Visit AOL Money & Finance for more earnings coverage

Usana Health Sciences: When great returns aren't so great originally appeared on BloggingStocks on Sun, 21 Oct 2007 11:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• International Business Machines Corporation (NYSE: IBM) is back in office software, taking on Microsoft Corporation (NASDAQ: MSFT) Office, with a free software package called Symphony that can be downloaded, reported the Wall Street Journal (subscription required).
  
• There's no deal yet in the General Motors Corporation (NYSE: GM) and UAW union talks, and negotiations are expected to continue for a few more days, reported the Wall Street Journal.
• Confidentiality agreements have been signed by over 12 potential purchasers of Wendy's International (NYSE: WEN), according to the Wall Street Journal.
• Moody's Corporation (NYSE: MCO) is considering issuing assessments of how complex financial instruments would behave in a liquidity crisis, which could be issued in addition to traditional ratings, reported the Financial Times (subscription required).

• The Reserve Bank of India may block Citigroup Inc's (NYSE: C) proposal to buy an additional 3% stake in India's National Stock Exchange, reported the Business Standard.

• TheStreet.com reported that Apple Inc (NASDAQ: AAPL) will deliver a faster, third-generation version of the iPhone in Q1 of next year, according to sources.
• TheStreet.com also reported that Apple is planning to make more iPhones than previously planned in its first quarter ending December 31, according to a source.

Newspaper wrap-up: IBM to challenge Microsoft originally appeared on BloggingStocks on Tue, 18 Sep 2007 08:42:00 EST. Please see our terms for use of feeds.

Worlds apart, Cramer and Orman speak to totally different classes of investors. Jim Cramer is the fast-talking showman talking primarily about stocks and Suze Orman is a slow-talking educator preferring funds. While Cramer likes to jump around playing with bells and whistles, Orman is making sure she speaks clearly and enunciates to her audience so they can understand and follow along.

The biggest difference between the two gurus is that Orman is interested in what you do with 90% of your assets and Cramer is only interested in the 10% Mad Money. Orman talks about getting people started on actually thinking about their personal finances and financial well-being. Cramer is interested in the sport of investing. He gets a rush from the whole subject. Orman is in no rush and much more sedate. Clearly Orman offers far more sound advice in the form of broad investing principles you can live by year in and year out with a minimal amount of work. That said, watching her is like going to your history and geography class. Valuable information, but not the highest form of entertainment. Cramer is a stock trader, and that fact by itself has proven to be harmful to most investors, even professionals. But his investment broadcasts are more like visiting the sports book in Las Vegas with 100 games in play at the same time.

Continue reading Money Face-Off: Jim Cramer vs. Suze Orman

Money Face-Off: Jim Cramer vs. Suze Orman originally appeared on BloggingStocks on Sun, 16 Sep 2007 11:01:00 EST. Please see our terms for use of feeds.

When I hear Jim Cramer speak lately in interviews it is a forgone conclusion that he anticipates that either he will quit due to burnout when it is no longer fun, or he will simply sputter away after pushing his show so far off the edge of zaniness that there remains nothing left to do and viewers move on to something else. He oftens mentions that it can't last forever. And it certainly can't stay fresh forever. This is not an obituary for his CNBC show. Only the recognition that all things must end and Cramer brings it up all too often.

He could never do four decades like Louis Rukeyser, who was America's most popular economic commentator. This when Cramer was just opening his eyes and knew nothing of the world of finance.

I admire Cramer's work ethic and his candor in calling it like he see's it on "Mad Money" and in interviews. Cramer is real. There will be no other. He has done such a good job being real that often it is not what he says anymore, it's just him, like the stand up comic that is on a role and is funny no matter he says. Its just him. It seems to me that not only is Cramer a "what you see is what you get" kind of guy, but who he is permeates everything he does. He could never be a 'buy and hold' guy. He is a 'trader' through and through. He needs the action. It's a sport and he needs the rush.

Continue reading Booyah! Who should replace Jim Cramer?

Booyah! Who should replace Jim Cramer? originally appeared on BloggingStocks on Mon, 10 Sep 2007 13:59:00 EST. Please see our terms for use of feeds.

Shares of Gateway Inc. (NYSE: GTW) soared on Monday when the company agreed to be acquired by Acer for $1.90 per share. The stock closed at $1.85 on Tuesday, a spread of a little less than 3% below the expected closing price.

According to TheStreet.com, there may be more to come. Senior writer Alexei Oreskovic cites an unnamed source who claims that the deal has an out for Gateway if it can find a superior offer, and Chinese Lenovo would appear to be a possible contender.

While the Acer deal presented a huge premium over the stock's most recent closing price prior to the announcement -- more than 50% -- it's actually lower than the stock was trading as recently as May. Even with the deal, there are still a lot of shareholders underwater, and that could spark a shareholder rebellion of sorts. Gateway is in the early stages of a turnaround, and I know many investors had a long-term target much higher than $1.90.

Shares of Gateway, at their current price, may represent a low-risk speculative opportunity. The worst-case scenario (barring something really bizarre) is that you can tender the shares for $1.90 when the deal closes. If another bidder emerges, there could be tremendous upside.

Is Gateway (GTW) a buy here? originally appeared on BloggingStocks on Wed, 29 Aug 2007 10:30:00 EST. Please see our terms for use of feeds.

The other side of the Barron's Jim Cramer coverage originally appeared on BloggingStocks on Wed, 22 Aug 2007 19:15:00 EST. Please see our terms for use of feeds.

Barron's cover story on Jim Cramer this week is a perfect August cover: beach reading about whether Cramer is a good stock picker.

Cramer and I went to college together and I was a board member at TheStreet.com (NASDAQ: TSCM), so I am not unfamiliar with Jim's career.

The Barron's piece starts out by saying the viewer of Cramer's show Mad Money would only have made 12% on Cramer's picks over the last two years. The magazine uses a firm called YourMoneyWatch to determine that. It tracks Cramer's stocks from when he tells viewers to buy them up until he says that they are "sells." In a chart, Barron's shows Cramer's performance against the two year advances of the Dow at 22% and the S&P at 16%.

Cramer has a wide following. His Mad Money show has 138,000 viewing homes according to Nielsen. Several hundred thousand more people read him through products at TheStreet. He is written about in the press several times a month, so Cramer is almost certainly the most widely followed stock guru in the country.

Continue reading Leave Jim Cramer alone

Leave Jim Cramer alone originally appeared on BloggingStocks on Sun, 19 Aug 2007 12:10:00 EST. Please see our terms for use of feeds.

The cover story on this week's Barron's is likely to get attention for a long time, and may even serve to drive down the price of TheStreet.com (NASDAQ: TSCM), Jim Cramer's company. Journalist Bill Alpert takes a look at the track record for Cramer's picks on his show Mad Money.

According to Alpert, "a comprehensive and careful review of his stock picks by Barron's finds that his picks haven't beaten the market. Over the past two years, viewers holding Cramer's stocks would be up 12% while the Dow rose 22% and the S&P 500 16%, according to a record of 1,300 of the CNBC star's Buy recommendations compiled by YourMoneyWatch.com, a Website run by a retired stock analyst and loyal Cramer-watcher."

I would never dream of buying any stock based on Cramer's recommendation, and here's why: Warren Buffett, one of the greatest investors in the world ever, has often said that he can only find a few good investment ideas per year. All you need is a few in your life to do well. How about Jim Cramer? He gives a few stock picks per show, five days a week, and then gives dozens more buy and sell calls on the Lightning Round each week.

This flies in the face of what most people understand about the markets. We can argue about the extent of their efficiency (Burton Malkiel would argue that nearly every stock is perfectly priced all the time) but the idea that anyone, even a guy who bites heads off of bears, could find so many market inefficiencies each day is absurd. If Cramer can do that, how come almost no one can beat the market? Cramer makes it too easy -- except, according to the Barron's report, he doesn't really. He just pretends to on TV.

Continue reading Jim Cramer: Too much Lightning Round, not enough sound advice

Jim Cramer: Too much Lightning Round, not enough sound advice originally appeared on BloggingStocks on Sun, 19 Aug 2007 11:40:00 EST. Please see our terms for use of feeds.