Maria Bartiromo: The big news on Wall Street today was the Cara Ellison boom. It was positively bizarre, watching the events unfold this morning and afternoon when Cara Ellison was arrested. There is a debate about whether she stumbled because of the very high heels she was wearing or if an FBI agent, well, rather violently shoved her head against the car. But one thing that is not in doubt is that when she responded to being struck – she spit at the agent – her stock began to climb. It climbed all day and ended at a six month high. Let’s go to our financial analyst Amber Smith. Amber, what do you make of this?
Amber Smith: Well, Maria, I’m not surprised actually. I think people who invest in Cara Ellison Corp like that kind of risky behavior. They like a CEO who is going to fight back, literally spit in the face of authority, even when she’s being arrested.
Maria: Some people have suggested she would have spit at the FBI agent even if she hadn’t stumbled. Do you think that kind of bravado is an act? Or is she genuinely this….
Amber: She’s an emotional person. You will recall that in the third quarter of 2008, she cussed out an analyst who asked why he couldn’t have the balance sheet with the earnings statement. I think that emotions were high today. You had the sex tape, followed by a very strange motorcade into the city to be arrested, followed by the smack against the car. I think she was just acting out of frustration.
Maria: Well the markets loved it. Do you think the bounce in stock price is likely to last?
Amber: That I do not know. It’s really going to depend on the substance of the company. If these pending allegations against her are believed by Wall Street, then no, no amount of defiance is going to prevent investors from yanking their money out of Cara Ellison Corp.
Maria: Thanks Amber. We’ll resume our coverage right after this.
