Wall Street – It’s been a long and illustrious run for Jim Cramer. He began his career at Goldman Sachs, where he learned the importance of saying anything to make himself sound intelligent to clients – no matter how many times he contradicted himself. By the time he joined CNBC as the host of “Mad Money”, he had truly mastered his craft.
Last week, Cramer hit a milestone – successfully completing the “grand slam” of flip-flop. Four different recommendations on a single stock, with each prognosis ultimately proven incorrect. What made the feat almost unbelievable, was that this all occurred in the span of only a week.
One week ago Friday, Cramer proclaimed Richard Bank & Trust (DICK) a “buy” on his show. When markets had closed the following Monday, the stock had lost more than 4%. That night, Cramer called all bank stocks – including DICK – “uninvestable”, given the price action. On Tuesday, the stock rallied more than 7%. That evening, Cramer welcomed the CEO of DICK on his show. Following the interview, Cramer went back to saying “DICK remains the bank you want to own right now”. Sure enough, the next day, the stock dropped more than 5%.
Wednesday, the finance world held its collective breath to see if Cramer would go back to the well one more time. For 50 minutes, crickets. Then it was time for the infamous “lightning round”. First question, “Steve from Chicago” asked what he should do with his DICK position – and Cramer went for it. “I don’t think you want to be holding DICK in this environment, it’s a sell”, he responded with confidence.
The stage was set. Three days with three conflicting recommendations – each one of them proven wrong. The stock didn’t disappoint – rocketing 12% on Wednesday to complete the grand slam for Cramer. He had successfully contradicted himself on one stock, on four consecutive days – and been wrong every single time.
When asked about the feat, Cramer acknowledged that he knew what was at stake. “I’ve had countless ‘triples’ in my career. Hell, back in ‘08, I was getting 3 or 4 every week. But to finally get the grand slam under my belt – and to do it on four consecutive days no less – what can I say, I‘m humbled”.