Watch the full interview with Katherine Ross in the video below at 11:30 a.m. ET:
Let's Talk About DraftKings
DraftKings stock took a hit in intraday trading on Tuesday, June 15 following a report from Hindenburg which said the betting group's merger with Bulgaria-based SBTech has opened it up to exposure linked to black-market gaming and money laundering.
Hindenburg said DraftKings, which went public last year via a three-way merger with special acquisition company sponsor Diamond Acquisition and SBTech, has 'systemically skirted the law and taken elaborate steps to obfuscate its black market operations" as insiders "aggressively cash out amidst the market froth".
"SBTech offered DraftKings a turnkey sportsbook, complete with user management, customer support, and payment gateways," Hindenburg wrote. "It also looks to have exposed DraftKings shareholders to extensive black market dealings, money laundering, and organized crime."
Are You Treating Stock Picking Like a Trip to the Grocery Store?
Jim Cramer had some thoughts about stocks to eye in his most recent Real Money column.
"Clean up in aisle seven!" wrote Cramer. "When you hear that in a supermarket, you have to brace yourself for the mess if you need something in seven. Or, it means nothing at all to you, because you are not in that aisle and don't want to go there."
"And so it goes with the stock market, which has a series of aisles -- some of which need cleanup badly, namely the industrials and the financials, and some of which have high demand and it's tough to keep the merchandise on the shelves," he continued. "Here's the problem. Most people simply refuse to recognize it is a market of stocks. They've been pretty much brainwashed that they should be in index funds, so I don't blame them. When really rich managers come on CNBC, they are often so big that they can only be trading the stock market. They would overwhelm most stocks if they tried to get big in them and it is easier for them just to trade the S&P 500 futures which, of course, contain every aisle."