Activision CEO's Sales Raise Only Ire

Call me steamed. That's right, just furious. I am furious that Bobby Kotick, the CEO of Activision (ATVI - commentary - Cramer's Take) came on television Tuesday and told the whole world how great his company was doing, and then blasted out 2.5 million shares himself right into the unsuspecting market.

That's right, Kotick gave you all the moves of Tony Hawk when he talked on "Squawk Box," giving you a sense of everything from the possibility of a takeover -- he never denied it -- to the prospects of another great year. It appears to be a first-class pump job.

And then he dumped. And dumped and dumped.

He dumped 2.5 million shares at a price of $22, well below where the stock ran to after he reported better-than-expected earnings.

He dumped 2.5 million shares at $22 after he came on television and did nothing to dampen the takeover prospects.

He dumped 2.5 million shares after invoking his "idol" Warren Buffett, saying he's thinking about the long term.

Unless the long term is the time between "Squawk Box" and the close, I beg to differ. The reaction was swift. Friedman Billings immediately pulled the stock from its Top Picks list. Credit Suisse wrote a report titled "Management Hits the Exit" and mentions "We've been there before." That's because the last time one of these offerings took place, it knocked the stock down 24% over the following two days and it took, I quote, "almost two years to return to its preoffering level."

And get this: After that sale that time, on June 4, 2002, the company then preannounced a terrible quarter, causing people to lose tons of money.

If you listened to Bobby, you probably bought the stock at $23 and change. You now see the stock at $20.

How can this stuff go on? Why did he come on the air? Why did he do this?

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