Jim Cramer vs. Wall Street Cheat Sheet

Watch out Jim Cramer: Wall St. Cheat Sheet is cranking up the heat!

Last week, WSCS wrote a widely-circulated post explaining that according to Jim Cramer’s own investment rules (as published in his books), TheStreet.com (TSCM) stock should be sold immediately.

Here are some of the details:

In his books, Cramer says to dump stocks when executives depart suddenly or companies miss their filings. Therefore, once The Street “failed to produce their 10-Q filing for the second quarter” and executives started jumping ship, an honest Cramer would have been forced to “Sell, Sell, Sell.”

Harsh stuff, and Jim fired back, asking the Cheat Sheet to apologize and remove the post. That only served to fan the flames, because WSCS is back again lampooning Cramer for his recommendation of CIT (CIT), which declared bankruptcy over the weekend and now trading at 28 cents:

As you can see in the chart above, Cramer recommended to buy CIT at the exact top. Thus, if “In Cramer You Trust” (like the CNBC commercials tell you to do), you are probably going to have lost 90+% of your investment by the open on Monday.

When Jim reads this he will probably email me again and ask me to remove the post and apologize to him. I suggest his remaining viewers email him and ask him to remove his stock picks from Mad Money and TheStreet.com as well as apologize. If Cramer was an honest guy and didn’t pathologically believe his own spin, he would add himself to his Wall of Shame.

As a highly visible member of the financial media, Jim’s is wide open to these types of attacks. Whether or note you agree with them, there’s no doubt that it comes with the territory – especially when wacky penny stocks like CIT are in the picture. The Jon Stewart encounter was a total disaster, and Jim would be wise to ignore these types of attacks.

To Wall St. Cheat Sheet’s credit, this is very effective marketing, and the more Jim fights them, the more visitors they’ll get.

Will Jim Cramer fire back? It would be entertaining if he did, but also potentially disastrous.