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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The 5 Dumbest Things on Wall Street This Week: June 28

4. Dim and Zimmer

Whew! Much to our relief the feud at Men's Wearhouse (MW) has gone from dim and Zimmer to dumb and dumber.

When Men's Wearhouse fired its founder and executive chairman George Zimmer last week, the company went out of its way to offer as little information as possible regarding his ouster. We here at the Dumbest Lab voiced our perplexity over the information blackout, as well as the "absolutely chilling sendoff" for the guy that started the specialty retailer that now counts 1,143 locations. At the time, we said the whole episode smacked of Zim Zam, thank you ma'am!.

Well, perhaps due to our puzzlement and that of others, not to mention the selloff in the company's shares, the company's board finally came clean Tuesday and revealed why it gave George the boot. And boy, oh boy, did they zetz Zim, but good!

"Mr. Zimmer had difficulty accepting the fact that Men's Wearhouse is a public company with an independent Board of Directors and that he has not been the Chief Executive Officer for two years. He advocated for significant changes that would enable him to regain control, but ultimately he was unable to convince any of the Board members or senior executives that his positions were in the best interests of employees, shareholders or the company's future," stated the company in a press release.

Ouch! We guarantee Zimmer is not going to like the way he looks after that public undressing.

And that was just the preamble. After first informing the world that its founder and face is anything but a team player, the company then went into detail about Zimmer's spotlight-hogging, showboating ways, including his feud with his own hand-picked CEO Doug Ewert and his push to take the company private in a sale the board vehemently did not want.

Zimmer gave a snippet of his side of the story last week, stating that he expressed his concerns about the direction of the company but "the Board has inappropriately chosen to silence" him through termination. Zimmer owns 3.5% of Men's Wearhouse stock, which surged 6% Tuesday on reports that he is talking to advisers about a potential buyout bid or activist campaign.

"Mr. Zimmer presented the Board with the choice of either a) continuing to support our CEO and the management team on the successful path they had been taking, or b) effectively re-instating Mr. Zimmer as the sole decision maker," stated the board.

Well, now we know why Men's Wearhouse selected option a.

The next question, of course, is, what will be Zimmer's plan b?

Stock quotes in this article: EBIX, MW, MCK, P 

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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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