Cramer’s Outrage of the Day: GS & UA

Cramer had harsh words for investment banker Goldman Sachs Group Inc. (NYSE:GS) for the way in which it dealt with the IPO for Dole Food Company (DOLE), an IPO which Cramer told viewers to buy. Cramer explained that at the last minute, Goldman added $300 million in convertible bonds to the offering, and once the IPO opened up for trading at $12.50 a share, the stock dropped to close at $12.10. Cramer said he’s calling out investment banks which offer bad deals like this one. He told viewers that nobody is watching these deals, and disclosing something at the last minute, which might be legal, is not the right thing to do. Cramer scolded Goldman for not bringing good deals to investors. Moving on to Under Armour Inc. (NYSE:UA), a stock Cramer recently issued a sell call on for reporting it had raised its full-year guidance. Cramer explained that Under Armour beat expectations by 8 cents a share, but only raised guidance by 5 cents a share, meaning it fell short by 3 cents a share for the fourth-quarter. That’s not the only misleading math the company report. Under Armour also raised its full-year revenue outlook to between $830 million and $835 million from $810 million. However, the first three quarters totaled $635 million, leaving just $200 million for the fourth quarter, which Cramer said was horrible for the holidays. “Investors realized they were taken, Cramer said, “and they’re making Under Armour pay an extra price for its tricks.” He said the company should be ashamed of itself. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

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