Media Fawn Over New Alcatel CEO

The appointment of a new CEO is change we can believe in corporate-style. No matter how much of a mess a company is, the appointment is occasion for over-the-top coverage about how the company undoubtedly is going to turn the disaster around.

In the case of the beleaguered Alcatel-Lucent(ALU Quote - Cramer on ALU - Stock Picks), which just appointed a CEO and a chairman, we got a double dose of this executive worshipping and highly misleading coverage.

The formula for such articles is pretty standard, so forever be on the lookout. You'll be a better investor if you can avoid the mistakes of overconfidence that these articles breed in investors.

Here's a how-to guide for writing one of these articles:

Lead with a small, nearly meaningless anecdote and blow it up into something with far-reaching significance. Then wind your way around to a summary of the company's difficulties before pivoting with a mention that the new CEO thinks he can turn it around and "some analysts" agree.

Stand overly impressed with any boilerplate "five-point plan."

Throw around words such as "no-nonsense" "dexterity," "deft" and even "savant" when describing the leader. If there are two new leaders, mention the possible existence of a "dream team." Who actually called them a dream team? Well, no one -- just drop in a vague line about how "many say" that they come "as close as possible" to a dream team.

Uh, OK.

End with a cute, personal little quote.

« Previous Page

1 2 3

Next Page »