Hall of Shame: Blockbuster’s James W. Keyes
Cramer added a new name to his CEO Hall of Shame during Monday’s Mad Money.
Blockbuster’s James W. Keyes.
Here’s a guy who took a troubled company and turned it around – only to undo all his hard work.
Yeah, we’re talking about the Circuit City proposed acquisition. Blockbuster was paying down debt, cutting costs and competing with Netflix, and then Keyes decides to buy an ailing electronics retailer.
The result? BBI stock is down 35% since the April 14 announcement. The Retail HOLDRs index is flat over the same time period.
But it’s not too late for Keyes to redeem himself. Circuit City will hold a shareholders’ meeting Tuesday, and Cramer said it would be the perfect opportunity for the CEO to back out of the acquisition. If Keyes did that, he’d be out of the Hall of Shame and Blockbuster would be out of the doghouse. After all, everything else about the CEO’s tenure had been good – until this.
In the meantime, though, welcome to the club, Mr. Keyes. It’s an honor, truly.
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