BP's Hayward Makes Cramer's Wall of Shame
Cramer on Friday made some long-overdue changes to the Mad Money Wall of Shame, where he puts "people's feet to the fire when they get something wrong."
It may seem like a no-brainer, but Cramer added CEO Tony Hayward to the Wall for doing a poor job of running the London-based company and failing to adequately respond to the Gulf oil spill. Mainly, he failed to take responsibility and hold himself accountable. The stock moved higher when news hit the markets that Hayward was no longer leading the spill cleanup, and Cramer thinks an outright firing of the CEO would propel BP upward another $3.
"The sun always rises and sets on the British Empire," Cramer told Hayward. "It's your time to set."
To add Hayward, Cramer removed United Airlines CEO Glenn Tilton for his shareholder-friendly decision to merge with Continental Airlines .
Cramer also shamed an unnamed analyst at Sterne Agee, who on Thursday downgraded Annaly Capital Management on fears of a dividend cut on the very day the company raised its dividend. The analyst predicted the payout would drop 5 cents, but instead it climbed 3 cents. Plus, the analyst made the mistake of downgrading the stock based on valuation, taking it to “neutral” from “buy” because it was selling above the Sterne Agee price target of $17.50 and its estimated book value. But it's not the share price that's important when it comes to NLY, Cramer said. It's whether the company can maintain the dividend.
"And from the looks of yesterday’s boost,” Cramer said, “they obviously can."
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