Cramer Hints at Scam in Qualcomm, But Not By the Company (QCOM)

Cramer has a fairly long video discussing "scams on Wall Street" on TheStreet.com video section.  Most of the video is just old reviews but toward the end if you pay attention, Cramer notes a potential scam in one of the most loved and more active stocks: Qualcomm (QCOM).

Cramer said a sort of scam that goes on in modern days is something that borderlines collusion among mutual funds to keep certain stocks higher. He said that it is sometimes so orderly that you would think the mutual funds are all in the same room buying stock.  He thinks this is going on right now in Qualcomm (QCOM) and he is cautious against it.  Keep in mind that Cramer is NOT saying that Qualcomm is doing anything that is a scam, he’s saying the fund buyers are propping shares up.  Cramer said he feels that is going on in QCOM, although he stressed that he has no concrete evidence on this.

I thought I was being gutsy by merely putting Paul Jacobs on a "probation watch" back in December about the stock being an underpereformer, but calling a scam even anywhere around this stock is going to generate hate mail for Cramer.  I was not calling Paul Jacobs out on anything other than the fact that QCOM holders have high demands and the shoes he had to fill were more than full of expectations. I received some hate email for even a mere mention of that.  Jacobs (the younger) is not on any active watch list of mine as a CEO that needs to go and he’s actually been working well with what he has.  I am just glad I didn’t have to fill Irwin Jacobs’ shoes because he was such a strong CEO on Wall Street that pulling an encore to him has to be 6-times the challenge of just running the company.

Cramer will almost certainly be getting more vicious emails today for mentioning the words "Qualcomm" and "scam" in the same discussion.

Jon C. Ogg
May 9, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in any of the companies he covers.