I don’t know about you, readers, but I love watching Jim Cramer’s “Mad Money” on MSNBC. The man is just so full of zest for the stock market, you can’t help but get excited about all the acronym’s he jabbers on about. Well, in a recent interview, transcribed wonderfully by the Corporate Crime Reporter, Cramer’s gives his take on the stock market as a whole, but took time to single out RIM and their recent issues in the market and how hedge funds can affect the numbers.
â€œA lot of times when I was short at my hedge fund, and I was positioned short, meaning I needed it down, I would create a level of activity before hand that could drive the futures,â€ Cramer said. â€œIt doesnâ€™t take much money. Of if I were long and I would want to make things a little bit rosy, I would go in and take a bunch of stocks and make sure they are higher â€“ maybe commit $5 million in capital and I could affect it.
Now, you need maybe $10 million in capital to knock the stuff down. But itâ€™s a fun game. And itâ€™s a lucrative game.â€ If you are short on RIM, â€œyou canâ€™t let it lift.â€
â€œYou canâ€™t foment,â€ Cramer says. â€œThatâ€™s a violation. You canâ€™t create yourself an impression that a stock is down. But you do it anyway because the SEC doesnâ€™t understand it. Thatâ€™s the only sense that I would say that it is illegal. But a hedge fund that is not up a lot really has to do a lot to save itself. This is blatantly illegal. But when you have six days and your company may be in doubt because you are down, I think it is really important to foment. If I were one of these guys, foment an impression that Research In Motion isnâ€™t any good.â€
â€œGet people talking about it as if something is wrong with RIM,â€ Cramer advises. â€œThen you would call the (Wall Street) Journal and talk the bozo reporter on Research in Motion and you would feed that Palm has got a killer it is going to give. These are the things that you must do on a day like today. And if you are not doing it, maybe you shouldnâ€™t be in the game.â€
Remember, you canâ€™t take any chances with the truth.