CRAMER TEMPORARILY EXILED FROM CNBC; GUEST MARKET ANALYST ACCUSED OF CONFLICT OF INTEREST.Byline: Eric R. Quinones Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. CNBC CNBC Center for the Neural Basis of Cognition (artificial intelligence) CNBC Consumer News and Business Channel CNBC Congress of National Black Churches, Inc. temporarily yanked a well-known guest analyst from the network Wednesday after ethics questions arose about whether he was commenting on a stock and attempting to trade it at the same time. Wall Street money manager James Cramer, who also frequently appears on the Internet and comments in print, was removed from CNBC as the business network investigates comments he made about the stock of Internet company WavePhore Inc. He denied any wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do . With investors seeking more financial advice than ever from the media, CNBC's situation illustrates how news organizations sometimes struggle to provide expert commentary from financial professionals without subjecting their audience to biased information. Cramer is expected to return to his unpaid position as a biweekly guest commentator on CNBC's morning program ``Squawk Box Squawk Box A speaker and intercom system used on trading desks. A squawk box allows a firm's analysts and traders to communicate with the firm's brokers through speakers on the brokers' desks. ,'' although no timetable has been set, said network spokesman George Jamison George Jamison (born September 30, 1962 in Bridgeton, New Jersey) is a former American football linebacker who played twelve seasons in the National Football League, mainly with the Detroit Lions. Previously, he played in the USFL for the Philadelphia/Baltimore Stars for two seasons . WavePhore, a developer of online broadcasting technology, complained that Cramer said on the Dec. 2 episode of ``Squawk Box'' that he tried to ``short'' the company's stock, a legal investment strategy based on the hope that a company's stock price will fall. On Dec. 1, WavePhore stock soared 72 percent to $15.25 after the company announced plans to develop an Internet shopping mall. The next day on CNBC, Cramer suggested the surge in WavePhore's stock was based on speculation and might not last. On Wednesday, he angrily denied he was trying to short-sell the stock and said he did not mean to give that impression on the program. He explained that he simply asked the investment firm Goldman Sachs whether there was any WavePhore stock available to borrow because he was investigating whether other investors were short-selling the stock. Since the show, WavePhore stock has fallen and closed at $8.06 Wednesday on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. . WHO IS HE? James Cramer is a well-known money manager and frequent contributor to numerous magazines and financial programs. Among his endeavors: He writes regular investment columns for Time magazine, GQ magazine and the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Observer. He is a former columnist for Smart Money magazine, which is owned by The Wall Street Journal. He co-founded and writes articles for TheStreet.Com, a popular online investment site. He runs his own hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" , the Cramer, Berkowitz & Co. fund. It is an investment vehicle typically used by corporations and wealthy individuals to invest in a variety of markets. Hedge funds have far fewer restrictions on them than mutual funds and often operate in virtual secrecy. CAPTION(S): Photo, Box PHOTO (Color) Money manager James Cramer works on the trading floor at his Wall Street firm, Cramer, Berkowitz & Co., in New York. Rick Maiman/Associated Press BOX: WHO IS HE? (See text) |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion