Jim Cramer:TSCM, Mad Money & The Street.com: Google is the ghost of Dotcom past.

» BoltonCT - Google is the ghost of Dotcom past.

Friday Nov 4, 2005, Jim Cramer played a game he called "break the analyst" which pretty much explains why Jim has had a broken and rapidly deteriorating record. Jim no doubt has made a lot of enemies. Studies have shown that the least competent analysts believe they actually can move the market as though they had some super heroic powers. Jim said he wants to punish an analyst who was negative on a company that Jim says has been profitable. Well yes, the stock in question just had a profitable quarter but it has a record of losses and it is not Jim's best of breed type according to the analyst.

Not many analysts are honest enough to pan a company that is poorly managed and Jim's behavior last night is consistent with the perception the public has of the corrupt and malicious behavior of analysts that pressure corporations to cook the books with creative accounting methods so that the companies meet the analysts profit targets. Corrupt and malicious analysts punish corporations that are honest and ignore the analyst's distortions. Corrupt analysts get revenge by dumping the honest management's corporate stock. That is well-documented post 2000 dotcom. Jim Cramer has no doubt made himself the new poster child for all that is wrong with the stock market. Free speech is important and punishing honest free speech is a symptom of corruption.

When Jim says buy a stock near its high, that has increasingly become the signal for investors and institutions to unload a stock. We see that more and more with Jim's recommendations. Jim says buy Dicks and everyone sells it. Last night's recommendations were of that type. Jim says he did his homework but anyone looking at the record knows when Jim tells the little guy to buy, it is usually the time the big guy sells out. Jim has people buying Google just when that bubble is ready to pop too.

Google is the ghost of Dotcom past.

-- posted by BoltonCT