With Cyberonics' CEO Skip Cummins Gone Over Options, Cramer Says It's a Buy

by Jon C. Ogg
November 21, 2006

Cramer then discussed options backdating on CNBC’s MAD MONEY.  He said when a CEO gets fired over this he thinks that is when you buy the stock.

Now that has happened to Cyberonics (CYBX) after Skip Cummins resigned over stock options.  The company makes this vagus nerve stimulator for severely depressed people.  Skip Cummins is a CEO that made himself hated and was a weight on the company, particularly after he has acted out brashly against Congressional oversight and toward the FDA.  Cramer said Cummins turned away takeover offers, but now it may be doable since only the caretakers are in charge.

Outside of Cramer touting the stock today, it has been trading up on its own.  After Carl Icahn bought in the stock ran up.  Yesterday after the close the CEO & CFO left over the options inquiry.  Today the stock rose 1.9% to $24.63 in normal trading, but shares rose an additional 5.5% to $26.00 in after-hours activity.