Is Sharper Image (SHRP) a broken stock or a broken company?-- Waylon from Texas James J. Cramer: I'd say the latter, because this very small-cap company's success historically has been based primarily on retail fads. At one point, Sharper benefited from Razor scooter sales, and then it surged because of demand for its air purifiers. Most recently, the retailer tried to ride the coattails of the iPod craze. That said, the company finally has met its match and has warned of lower growth for several straight quarters. It is difficult, if not impossible to carve out a niche in the retail business when you are selling commodity products.
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