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
TheStreet Open House

The 5 Dumbest Things on Wall Street This Week: May 17

Stock quotes in this article: SPPI, SNE, DELL, WMT

5. Spectrum's Shenanigans

Not to complain too much Dumbest fans, but we can't remember a time when we've worked this hard to fill our less-than august list. This raging rally in stocks is turning every CEO in sight into a genius, making it an almost a Herculean task even for pros like us to separate the brainless from the bull market.

Luckily, however, we can always count on our good friends at Spectrum Pharmaceuticals (SPPI) to provide us with some low hanging fruit.

Let's start with CEO Raj Shrotriya's paycheck, because that piece of corporate idiocy was the easiest to unearth. As disclosed in the 10-Q Spectrum released last Thursday -- after the bell and the company's conference call mind you -- Shrotriya pocketed $10.1 million dollars in 2012 for his services.

Pretty killer comp, huh, even if it was down from the gobsmacking $25.2 million Raj took home 2011. And what makes it even more impressive is the fact that shares of Spectrum sank 22.5% last year.


Eat your heart out A-Rod. When it comes to getting overpaid for lack of performance, you've been outslugged.

So, what exactly did Raj do to earn all that dough if the stock's performance was that unbelievably sad?

Well, according to the company's compensation committee, Raj earned every penny because he met all the targets laid out for him. For example, under his leadership the company grew revenue 39% from $193 million to $268 million.

In order to meet that goal, however, it's now become abundantly clear that he stuffed the company's colon cancer drug Fusilev down the throats of every single customer he could. Seriously, if there was ever any doubt as to why the company issued a massive warning about Fusilev sales on March 12th -- just three weeks after Shrotriya told analysts that Fusilev sales would grow this year -- well, now we know the truth. Nobody had any room left on their shelves for the stuff!

In case you may have forgotten, Spectrum revealed in March that first quarter revenue fell 35% to $38.7 million compared to last year. Fusilev sales totaled $11.8 million in the first quarter, down sharply from $51 million in the prior year.

We also now know that the SEC is interested in Spectrum's Fusilev shenanigans as well. Tucked into Thursday's SEC filing was a disclosure that the regulator is investigating the "change in ordering patterns of Fusilev" that forced Spectrum to drastically cut its 2013 sales forecast to between $80 million and $90 million.

Not that the analysts on the company's conference call could have possibly inquired about the investigation. Raj cleverly scheduled the call for 1:30 p.m. last Thursday, while the 10Q was released after the closing bell.

Very sneaky, Shrotriya! Very sneaky indeed!

That said, discerning listeners might have been able to pick up that something was amiss because Raj kept avoiding all questions pertaining to Fusilev. Whenever an analyst tried to get Raj to say something about the drug's sales, he redirected the query to one of his trusted advisers. At one point Raj curiously responded to a question about the drug's inventory by stating, "We can't comment on FUSILEV."

Sorry, big guy, now that the Feds are on the case, you're going to have to start talking. And when you do, we'll be right here, hanging on your every word.

What else can we do? There's a bull market going on and we need all the dumb stuff we can find!

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs