CNBC's Jim Cramer casino folly

[JSTAT]

Jim Cramer of "Mad Money" on CNBC suggested "to avoid MGM and pick up rival Wynn Resorts" last week. Wynn's stock is flying high while MGM Mirage's City Center is opening segments of the resort this month with its flagship Aria casino opening Dec. 16. Cramer has blown many calls such as Jimmy The Greek did when "The Greek" proclaimed the New York Jets as 17 point underdogs to the Baltimore Colts in Super Bowl III. Many have bet against MGM Mirage's largest shareholder Kirk Kerkorian's visionary ventures before and wound up doing business shows on low rated networks.

Kerkorian's investment company Tracinda Corp. "is exploring the possibility of strategic partnerships or other alternatives with respect to its investment in MGM MIRAGE and believes there is substantial unrecognized value in MGM MIRAGE and CityCenter that is not reflected in the market value of MGM MIRAGE’s stock." Kerkorian won't pull the trigger on a deal until Aria opens and the word is that Dubai World will pull out of its 50% ownership of City Center leaving MGM with the option to buy it. Dubai World also owns 5.9% of MGM stock and it is possible that as a strategic partnership, Tracinda will land the sale of Bellagio and City Center subject to the approval of MGM Mirage's Board of Directors and shareholders. Kerkorian sent out a trial baloon in 2007 suggesting ownership of these two properties while unloading all his interest of MGM Mirage. The stock skyrocketed with this rumor and will again if this deal is cut after Dec. 16, if history repeats itself.

Kerkorian has a history of buying and selling casino properties and knowing when to take the money off the table. He is ranked in Forbes as one of the top 100 billionaires and still hasn't lost his fastball regarding business. Many would like to see his fall including Cramer, who can't count cards in "the house of pain" for a profit at blackjack. Maybe Cramer is playing with "smart money" by bad mouthing MGM Mirage and facilitating its low price at $10 while loading up on the stock, only time will tell.

Article published with links at http://www.examiner.com/x-18051-San-Francisco-Blackjack-Examiner~y2009m12d9-CNBCs-Jim-Cramer-casino-folly

 

[JSTAT]

Here is Jon Stewart of the Daily Show ripping Jim Cramer's advice on Bear Stearns http://thedailyshow.cc.com/videos/m0dbcb/in-cramer-we-trust for leading sheep to slaughter. The March 9, 2009 show was named "In Cramer we trust" displays a video history of Cramer giving advice to buy Bear Sterns before it collapsed.

 

[shadroch]

Maybe Gibson was correct. Evidently there are some White Males who don't realize Stewarts show is satire.

 

[ChefJJ]

How is this a folly, JSTAT? Sounds like this guy is advising picking up shares of Wynn over MGMMirage, if one is getting into this sector of the market. Not like he's blasting MGM (although, Dubai World is looking like a verrrry shaky partner in the City Center deal), just making a case for one over the other.

Besides, anybody who just buys stock based on what a TV personality says without doing their own research is the fool...not the guy getting paid to throw things out there.

good luck :joker:

BTW - Why is this thread in this section?

 

[JSTAT]

How is this a folly, JSTAT? Sounds like this guy is advising picking up shares of Wynn over MGMMirage, if one is getting into this sector of the market. Not like he's blasting MGM (although, Dubai World is looking like a verrrry shaky partner in the City Center deal), just making a case for one over the other.

Besides, anybody who just buys stock based on what a TV personality says without doing their own research is the fool...not the guy getting paid to throw things out there.

good luck :joker:

BTW - Why is this thread in this section?

It belongs in this section because it discusses Las Vegas casinos. My article "CNBC's Jim Cramer casino folly" was read by tens of thousands viewers on Google News and was the Examiner's highest viewed on December 9. It touched a nerve throughout the country about the Las Vegas based casino advice by the Mad Money host. Folly according to Webster's dictionary is defined as a "lack of foresight" which Jim Cramer displayed in the Jon Stewart clip provided here ChefJJ. Cramer could be shorting the stock by disparaging MGM Mirage for financial gain. Cramer blasted majority shareholder Kirk Kerkorian last year by describing him as "dead", which many of his cult found as bad news for MGM Mirage and took his sell/don't buy stand. Dubai World has fully funded the 50/50 partnership with CityCenter and will probably liquidate its investment after the December 16 opening to fund its distressed investments. MGM Mirage will buy out Dubai World's Las Vegas investment with Kerkorian offering to sell all his MGM Mirage shares to buy Bellagio and CityCenter and take them private. MGM Mirage's stock price will skyrocket while Cramer will take a beating from this wannabe journalist for deceiving investors. Or it might land egg all over my face to the pleasure of many here. :flame:

 

[ChefJJ]

So you're just touting MGM Mirage then?

 

[JSTAT]

So you're just touting MGM Mirage then?

I have no financial interests in Wall Street stocks as Jim Cramer might have, ChefJJ. I gave up on stocks in the 90's after realizing I got better returns from playing blackjack. Cramer's bad mouthing of MGM Mirage went unanswered until I published my article. Thought the public deserved a counterpoint against the CNBC machine.

 

[Mr. T]

Man with no skin in the game you seem to profuse some expect opinion.

Let the record show that Kerkorion did not have a good record recently. What with his beating in GM and Ford stocks many has said he has lost his touch. As for Cramer you just enjoy his antics on TV and since he is wrong so many times on stocks it is not funny.

As for MGM and less so on Wynn the verdict is still out. The whole gaming and Las Vegas picture is in dire straits. The opening of the MGM city centre complex has added pressure on everybody including MGM. Taken together with this latest monthly drop in revenue in LAS there is increasing speculation as to which company would be the first to collapse. Would it be MGM, Hurrahs, Sands, Wynn or somebdy else. You would find out in the coming months.

So don't pass judgement on anybody as yet. Not even on Cramer.

 

[shadroch]

I have no financial interests in Wall Street stocks as Jim Cramer might have, ChefJJ. I gave up on stocks in the 90's after realizing I got better returns from playing blackjack. Cramer's bad mouthing of MGM Mirage went unanswered until I published my article. Thought the public deserved a counterpoint against the CNBC machine.

Your bad mouthing of Cramer went unanswered until I wrote my post. Thought your idiocy needed a response. Not that the public gave a hoot.
You accuse Cramer of commiting a felony, than retract it and say its only possible he's commiting a felony, all with zero proof. Just like you keep harping a BJ system with zero proof. You've a bad case of hubis, my friend.

 

[Pro21]

I have no financial interests in Wall Street stocks as Jim Cramer might have, ChefJJ. I gave up on stocks in the 90's after realizing I got better returns from playing blackjack. Cramer's bad mouthing of MGM Mirage went unanswered until I published my article. Thought the public deserved a counterpoint against the CNBC machine.

You have had your entire bankroll in blackjack since the 90s and still betting quarters??? I don't know whether to laugh or cry.