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September 19, 2005
Booyah, Booyah and a Cloud of Dust
Since Mad Money started airing on CNBC in March, a new market-moving force has emerged: Jim Cramer (and his now infamous “booyah” battle cry). Cramer’s hour-long spastic waltz isn’t news. Forbes, Time Magazine, The LA Times, and countless others have written on him extensively. But the increasingly powerful “Cramer Effect”—which is driven by his nightly picks and pans—is moving shares like nothing or no one we’ve seen since the stock jocks of the 1990s.
Take Plum Creek Timber (NYSE: PCL) for example—a company Cramer took a bullish stance on Tuesday (9/13/05) night. The stock closed at $37.30 on 9/13; it opened the next day $.60 higher (on no news) with crazy-high volume.
Booyah. The Cramer effect. This often emotional, occasionally irrational and always entertaining (that’s what TV is) force is something to reckon with if you’re a public entity. Should Cramer wax wacky on your ticker, watch the current share price likely depart in a cloud of dust . . . or smoke.
Posted by Matt Sullivan at September 19, 2005 10:30 AM