Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.




Mad Money PhotosCHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.




ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.







Text Size
Sep.02
7:26 PM ET
Tuesday, 2 Sep 2008
Journalists on Jihad

Beware of bylines, Cramer said during Tuesday’s Mad Money. A series of negative news stories can do more damage to a stock than a bad earnings report.

More specifically, this has to do with what Cramer sees as a media-wide loathing of Big Pharma, much in the same way the Democrats dislike the group. Once a reporter’s mind is made up, not even the best stocks can withstand the attacks, “even if,” he said, “there’s no news in the articles.” Cramer’s charitable trust sold off its Schering-Plough [SGP  Loading...      ()   ] shares for this very reason.

Who was the culprit? The New York Times’ Alex Berenson.

Schering-Plough has taken a lot of hits for its shared cholesterol franchise, shared with Merck [MRK  Loading...      ()   ], consisting of Vytorin and Zetia, and Berenson has been getting his whacks in every step of the way. In the past 18 months, he’s written 10 articles about the two treatments on everything from unpublished side effects to delayed trial results to the high cost for patients.

Read Berenson’s latest, “For Widely Used Drug, Question of Usefulness Is Still Lingering,” another negative article about the two drugs.

Now Cramer’s not slagging Berenson or saying that his work is off point at all. In fact, Berenson worked at TheStreet.com immediately after he finished school. This guy’s a pro, and his stories are spot on. But Berenson’s relentless press about Schering and Vytorin make the stock too difficult to own.

Note: Don’t confuse Berenson’s consistency with a one-off article that hurts a company for a day. That’s what happened to Genentech [DNA  Loading...      ()   ] when the Times criticized the high costs of that company’s cancer drug Avastin. The stock’s rebounded 29% since that July 6 story.

The lesson here is that often times bylines are the same as “sell lines.” And right now that’s the case, no matter how good a company is may be, for Schering-Plough.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 07:13:39 15 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 07:13:45 15 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 07:13:45 15 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 07:13:47 15 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters