Anavex Life Sciences Corp (AVXL)

[Doktornolittle]

Who is Adam Feuerstein?

Several year ago Jim Cramer hired Adam Feuerstein to work for him as a "Biotech Reporter". Very soon after, Cramer started referring to Feuerstein as a "Biotech Expert". In fact that brief period working for Jim Cramer was the entirety of Adam Feuerstein's experience in Biotech.

And who is Jim Cramer? Jim Cramer was half owner of a hedge fund for many years. In an infamous videotape that you can find on utub Cramer admits to illegal practices to manipulate share price if the hedge fund got in trouble having setup highly leveraged short bets that went wrong.

A common strategy by hedge funds is to short all small cap biotechs. The chances of failure are high, so statistically, they win. The problem is that they leverage these bets 30 or even 50 fold. So if they lose, they lose 50X an already unlimited potential amount. That sets in panic. According to Cramer, what they do in those panic situations is disseminate completely false information to temporarily effect a drop in share price in order to cover their short bets. In the same video, Cramer said that it is important to have access to people in the public eye at CNBC in order to accomplish such manipulation.

After Cramer's infamous revelation, an action was started against Cramer by an officer at the SEC. The action was later shut-down by the head of the SEC, with no explanation. Cramer, instead of going to prison, ended up with his own show on CNBC, as you know.