Here are some of the stories that Jim Cramer and Katherine Ross will be covering at 10:30 a.m:
What GameStop and AMC and Braveheart Have in Common
“How can a company’s stock be hostage to its own shareholders to do the job that the company can’t?” Asked Jim Cramer in his Real Money column on Tuesday morning. “But that’s what happens when WallStreetBets took over the flow of certain stocks and made it clear that they were the bosses, not the company, not Wall Street analysts, not Wall Street professionals and, most important, not the short-sellers.”
“To me this method of buying does not represent anything remotely considered to be investing. Sure, it’s OK to care what your fellow shareholders might do. In fact, I have been deeply focused on knowing what your compadres might do. That’s because it’s vital to try to find out what an Archegos might do. For example, when I saw big trades before the market opened in Tencent (TME) and Baidu (BIDU) I thought something was wrong at the companies. Nope, that was Goldman Sachs (GS) shrewdly dumping the shares that Archegoes had in these names to protect their own balance sheet. Talk about important knowledge,” he continued.
What to Do With Cruise Stocks Now?
“For his second “Executive Decision” segment, Cramer also spoke with Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings (NCLH) – Get Report, the cruise line operator that finds itself locked in a battle with the CDC over the timing and protocols needed to resume sailing. Shares of Norwegian rose 7.1% Monday after the company offered up its latest round of proposals for safe operations,” wrote TheStreet’s Scott Rutt in his Mad Money recap.
“Del Rio said he was “deeply disappointed” by the latest guidance from the CDC. “It’s time to start cruising again,” he said. The cruise lines have been forbidden from sailing for 17 months and there is still seemingly no end in sight,” he continued.
Credit Suisse Books $4.7 Billion Hit Following Archegos Collapse
Credit Suisse CS announced that the “significant” hit that it had warned about following the Archegos collapse will lead to a $4.7 billion writedown.
TheStreet’s Martin Baccardax reported that Credit Suisse said it will likely report a pre-tax loss of 900 million Swiss francs ($960 million) , a figure that includes a charge of 4.4 billion Swiss francs tied to what it called “the failure by a US-based hedge fund to meet its margin commitments.
“The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable,” said CEO Thomas Gottstein in a statement. “In combination with the recent issues around the supply chain finance funds, I recognize that these cases have caused significant concern amongst all our stakeholders.”
Hear what Jim Cramer is only telling members of his Action Alerts PLUS investing club in Tuesday’s Daily Rundown.