Cramer knows a lot of short fund managers. He supports his friends in two ways - one direct and another indirect.
Cramer has never liked Nuance, the speech recognition company. This company used to be Scansoft, before a merger with Nuance, and a change to Nuance for the merger roll-up. As I remember reading, Rocker Partners was short SSFT / NUAN. When anyone asked about SSFT /NUAN, it was alweays "Sell, Sell Sell" from Cramer. The answer was the same at $3, at $5, at $7, you get the picture, ... up into the low $20s. It is obvious to me and most that speech recognition is big and will factor into electronic devices today and especially into the future!
Cramer recommended IDCC earlier this year. The stock rose from the low 40s to the upper 50s. This rise was great to short into, which makes me wonder if Cramer spiked the stock, just so that his short buddies could short more at high prices. The outstanding IDCC short position subsequently exploded in size. Then, IDCC fell to as low as $35. After that, the Nortel auction happened, and now this investment banker exploration thing. IDCC stock is bact to trading in the $50s. The shorts were greedy and most didn't cover in the 30s and 40s. IDCC is now in the low $50s and that huge short position is mostly at a loss.
Yesterday, Cramer comes onto the telly, and suggests taking profits! (read, provide supply so stuck shorty friends so they can cover in the $50s, instead of being margin called out later in the $80s on a merger offer from Google!