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NEW YORK (TheStreet) -- The secret to higher stock prices isn't rocket science, Jim Cramer told his Mad Money viewers Tuesday -- it's common sense. Yet, common sense seems to elude some CEOs, which is why investors are fleeing their stocks.
There are two types of CEOs: those who are working for shareholders and those who only think they are. Among the former is Netflix (NFLX), a company that announced today it is making its first full-length film starring Brad Pitt, all while continuing to mull the possibility of a 5:1 or even at 10:1 stock split to attract new shareholders.
On the flip side is General Motors (GM), a stock Cramer has been selling from his charitable trust, Action Alerts PLUS. GM's CEO scoffed at even the possibility of a merger with Fiat Chrysler (FCAU), all while GM's stock seems stuck at $35 a share indefinitely.
Avago (AVGO) is taking a "get rich fast" strategy, making all sorts of mergers and deals to boost its share price, while Twitter (TWTR), another Action Alerts PLUS name, seems content with everyone being discontented with its lack of growth and direction.