Mad Mail for Wednesday, March 28
A sobering BooHooHooyah. Before the announcement of the possible merger of Sirius and XM Radio, I had already backed the truck up and filled it with SIRI. Since then, and thanks to the announcement of the merger, it continues to slide BIG time. I'm down almost 16% … Do I hold all, trim some off at a loss and reinvest, or get out? HELP!!! I need a big brother to guide me through this one. --Walter
Cramer says: "Walter, this is as tough as nails. If they get the deal, the stock goes to $5. If they do not get this thing, I think it goes to $2 or $1. But I do believe that XM will be wiped out. That's my own personal belief if they don't get the merger. That's why I think Congress should approve it – because they're going to end up with one either way…I think [the deal] will go through."
Thank you to you and your staff for a great show at UT! The cameramen are fun, your comedian was great, and the show's staff is awesome! I hope you have as much fun (but not more!) at Indiana next week. Will you explain to Home Gamers how underwriters’ decisions to exercise their full option to purchase additional shares after an IPO impacts the stock? For example, Opnext’s underwriters recently announced that they would exercise their full option. Does this mean good things are on the horizon for the stock? --Sean
Cramer says: "Not really ... I would love to say it means something, but it happens in most stocks, and it's not going to do much for you. The fundamentals are going to control the stock and not the aftermarket…"
I bought some shares of Take-Two Interactive when you recommended it on Street Signs March 7. The stock was going up on the news that TTWO was shopping for a buyer, but now that they can't find one it seems to be dropping back down. Do you see any upside either before or after the shareholder’s meeting? --Matt
Cramer says: "Matt, if you recall, I said that I liked it on the Erin Burnett show and then the next day I said I had second thoughts because I liked it for all the wrong reasons." Cramer says a deeper look showed the numbers for TTWO were nonexistent. Cramer says, "don't buy" - "Without a deal, TTWO is going much, much lower."
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