Cramer's Wall of Shame
On Aug. 17 of last year, Cramer inducted the first class of the Mad Money Wall of Shame. It was his list of CEOs he thinks are so bad they bring their stocks down just by occupying a corner office. If these leaders of ill repute were to leave their respective jobs to spend more time with their families, Cramer figured the stocks would bounce back. It was speculation based solely on the idea that strong management, or, in this case, bad management, can move share price.
The Wall was a potpourri of poor performers in Cramer’s eyes: Peter Dolan of Bristol-Myers Squibb, Bob Nardelli of Home Depot, Andrea Jung of Avon, Ronald Zarella of Bausch & Lomb, Mike Cherkasky of Marsh & McLennan, Sam Palmisano of IBM , Chuck Prince of Citigroup, Lee Scott of Wal-Mart, Terry Semel of Yahoo!, and Vincent Solitto of Syntax-Brillian.
Since then, Dolan and Nardelli are both gone. BMY is up 34% since Dolan left, but Home Depot is actually down about 1%. This is to be expected, though, Cramer said, because it will take a while to undo the damage Nardelli had done.
Jung and Zarella were pardoned after their stocks started to climb. Their companies are up 36% and 42%, respectively. Palmisano didn’t get off completely, but Cramer did commute his sentence, giving IBM a buy. Cherkasky of MMC was on probation because the stock is up 22% since the Wall’s opening ceremony, but Cramer still thinks the company would be better off without him.
Semel got bounced from the Wall after Yahoo! removed him from the CEO spot. He’s non-executive chairman now. It’s not exactly a firing, but it’s pretty close to being handed a hara-kiri sword in feudal Japan. Cramer thinks it will be a while before the stock gets the bounce it needs, but it should be coming, he said.
That leaves Prince of Citigroup, Scott of Wal-Mart and Solitto of BRLC. True to the Wall’s induction criteria, if these guys go, the stocks probably go up, Cramer said.
Two quick honorable mentions: Kevin Rolls lost his job at Dell , and the stock has climbed 19% since. 3M is up 23% since George Buckley left.
Jim's charitable trust owns Citigroup and Yahoo!.
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