Saturday, March 04, 2006

Rocker rocks TheStreet

When stock TV host Jim Cramer pounds the table for stocks, he ought to let his viewers know when the stocks he touts are big holdings of one of’s biggest shareholders.

This thought came to mind after reading about the
SEC subpoenaing journalists from Dow Jones as well as Cramer himself in connection with a complaint about negative stories written about

According to SEC filings, with 4.97% of the stock, David Rocker was one of the largest shareholders of at the end of 2005. While this puts him well behind co-founder Cramer -- who owns 9% -- Rocker is still a significant owner.

What I find interesting is that in the last six months, Cramer has been pounding the table for one of Rocker’s significant investments – Powerwave (PWAV) -- on his CNBC show and on According to SEC filings, with 5.04% Rocker was the largest shareholder of PWAV at the end of 2005 – a position he began building in 2004. Since September 2005, Cramer has sounded a bull horn for PWAV on at least 10 separate occasions, based on my analysis of articles posted on’s web site. Since his first bullish mention on September 12, 2005, PWAV has appreciated 33%.

I’m curious whether Cramer’s bullishness on PWAV has anything to do with Rocker’s. Given his evident
power to move stocks, I think Cramer’s viewers deserve a disclosure of this alignment of interests as they consider his trading advice.


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