In Which Companies Can We Trust?
By James J. Cramer
The new game: To Tell The Truth. How can we spot truthful companies? How about these telltale signs:
1. Led by a noncelebrity CEO, one who doesn't live to go to conferences, doesn't hang out at Sun Valley and doesn't want to keynote every single stupid conference.
2. Has a chief financial officer who is older, polished, with good blood lines (meaning trained at some firm that was not Arthur Andersen or Andersen-like).
3. No outrageous options packages.
4. No or one inside director on board.
5. Didn't make a bunch of acquisitions.
6. Didn't take serial charges.
7. Didn't take down a lot of debt (to the point where interest charges were bigger than dividends).
8. Didn't set up special-purpose entities and do off-the-books financings.
9. Didn't fight the requirement of certification by Aug. 14.
10. Didn't get investigated by the Securities and Exchange Commission for inflating revenue.
That checklist should help a great deal in the new world we'll face after Aug. 14. I know I am going to use it to measure my own picks because it is too important to be squeaky clean going forward.
Those are the companies that will do well in the future. That's what will go up. That's what matters.
If anybody know a company with those 10 itens above please let me know !!!!
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