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

Cramer: Bill Ackman's Dreadful Picks

But how do I know that the fate of his biggest positions might be in the balance? First, the ascension of Carl Icahn as a force took a dramatic turn to an even more positive level last week. Apple (AAPL) soared on his Twitter comments that he has a huge stake in the company, relative to his normal positions -- not relative to the market capitalization as a whole, which is Doug Kass's complaint elsewhere in this site. The simple truth is that Carl's up big on Apple, and that's a testament to his power right now and the belief that no one has a hotter hand.

What this means is that, the moment Herbalife issues clean financials (they are only dirty because of the actual rogue actions of the accounting firm doing its auditing), I have to imagine that Icahn will push for an expanded share buyback, or even a Dutch tender offering, that would immediately cause the stock to soar. After the Ackman-led initiative to try to get Herbalife's products taken off the market, or at least tainted in the mind of the public -- and even with The New York Times' huge take-out of the company last week -- Herbalife shares did not get hit. This tells you that, for the moment, without sanctions from the Food and Drug Administration, Herbalife has no reason to fall precipitously. However, it could go up gigantically if the audit is completed on the company's books.

Then there's General Growth Properties, the real estate investment trust that helped propel Ackman to the height of the Great Hedge Fund Man universe. This company, resurrected shrewdly by Ackman, dwells in the shopping-mall section of the REITs -- and I think could be hanging by a thread, given the sudden downfall in the overall REIT sector. Every single player in this now-horrendous bond-market-equivalent group has been shelled by the rapid increase in bond yields -- except General Growth. That's despite a dividend yield of just 2.66%, which is far less yield protection than that of better-run companies like Federal Realty (FRT - Get Report), Vornado (VNO), Kimco (KIM - Get Report) and Simon Properties Group (SPG). All of these currently offer yield of more than 3%.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

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
  • 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 serious 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

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
Real Money
Try it NOW

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


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs