Market Features

Granville, Cramer and the Second Coming

 

I want to repeat for emphasis that the ludicrous share-price reactions are not Jimmy's fault (indeed, he cautions investors not to pay up for his ideas). Like the doom-like Granville calls of 25 years ago (shortly thereafter, a monstrous bull market started!), they are the fault of those who react in such a foolish manner that they should be chastised and that will hurt financially.

The wild response to Jimmy's stock recommendations in CNBC's live "Mad Money" show last night could suggest that the momentum and enthusiasm with regard to equities is reaching manic and silly levels -- or it could just be an isolated event.

When I distill the parallels (above) and the meaningful content that is being delivered by Jim (vis à vis Granville), I come to two conclusions.

First, Jim is delivering a hard-hitting, informative real-time market/company analysis and is laying his opinions on the line. Unlike Granville's "Sell Everything" mantra, Jim's information reveals substance that is rarely available in the business media today.

Second, participants' response (again not Jimmy's fault) is a strong indication that a section of the investment population is getting goofy and is ready for a fall.

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Doug Kass is general partner for two investment partnerships, Seabreeze Partners L.P. and Seabreeze Partners Short L.P. Until 1996, he was senior portfolio manager at Omega Advisors, a $4 billion investment partnership. Before that he was executive senior vice president and director of institutional equities of First Albany Corporation and JW Charles/CSG. He also was a General Partner of Glickenhaus & Co., and held various positions with Putnam Management and Kidder, Peabody. Kass received his bachelor's from Alfred University, and received a master's of business administration in finance from the University of Pennsylvania's Wharton School in 1972. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box." Kass aappreciates your feedback; click here to send him an email.

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