CNBC suspends analyst over 'short' stox squawk
WavePhore comments may lead to Nasdaq, SEC queries
Despite the prospect of regulatory probes, CNBC spokesman George Jamison said he expected Cramer to return as a guest analyst soon.
Cramer's comments were made Dec. 2 about WavePhore, a developer of online broadcasting technology.
During CNBC's "Squawk Box" program, Cramer said that he had tried to "short" WavePhore's stock, an investment strategy based on the hope that a stock's price will fall. Cramer added that the recent increase in WavePhore's stock price was due to speculation and might not last.
WavePhore complained to CNBC about Cramer's comments and asked the Nasdaq and the Securities and Exchange Commission to investigate.
Cramer, a professional money manager, has denied any wrongdoing. He also has denied trying to short-sell the stock. He said he had called his broker to see if there was enough WavePhore stock available in the market if one wished to short the stock.
"We want to take this opportunity to review and analyze the comments and also our expectations of guest commentators," Jamison said.
Cramer runs the $340 million investment fund Cramer, Berkowitz & Co. and is co-chairman and contributing editor of TheStreet.Com, an Internet investment news service. Cramer appears on CNBC about once every two weeks as an unpaid guest.
