This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer's Stop Trading! Online Brokers Broken

Yahoo! (YHOO - Get Report) chief Terry Semel must go, Jim Cramer said Wednesday on CNBC's "Stop Trading!" segment.

Cramer said Semel has become "one of those guys" whose disengagement atop a valuable but seemingly lost franchise is actually pulling down the stock. "I just want to say there is a level where you back out" Yahoo!'s cash and securities holdings, Cramer said. "People are underestimating the power of Yahoo!."

But Cramer said he doubts the market will resume recognizing the company's considerable strengths until its CEO steps down and clears the way for new leadership.

"Semel's greatness is in the past," Cramer said, likening the exec to Yankees manager Joe Torre, who is being lambasted in some quarters for failing to have won a World Series in an unthinkable six years. Cramer said Semel's departure could push the stock to "28 smackers" from a recent $24.

Cramer also said he would be a seller of the online brokers, which have been hammered on news of a Bank of America (BAC - Get Report) push to offer free online trading. As a result of the push, Ameritrade (AMTD - Get Report), E*Trade (ET) and Schwab (SCHW - Get Report) were off sharply.

Fans of the online brokers counsel investors that they'll come back, but Cramer says it's time to sell once the panic ends. He said other big free-trading offers, such as one seven years ago at American Express (AXP), "failed because there wasn't a concerted push." This time, he said, Bank of America is eager to get a hold of depositors' assets and will keep dangling the free-trading carrot.
At the time of publication, Cramer was long Yahoo!.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS . Listen to Cramer's RealMoney Radio show on your computer; just click here . Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here . has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ET $0.00 0.00%
AMTD $29.83 0.00%
BAC $14.56 0.00%
SCHW $28.41 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs