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Sell Block: Dump Private Equity

Published: Thursday, 15 Nov 2007 | 7:32 PM ET

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By: Tom Brennan
Web Editor, Mad Money

Private equity companies rode low interest rates as far as they could, buying and flipping businesses at massive profits and working the system to pay as little tax as possible. Then CEOs like Wes Edens of Fortress Investment Group and Steve Schwarzmann of Blackstone Group sold their company shares to a public frothing at the mouth for some of that money. Too bad the ride was over by then.

Fortress [FIG Loading... () ] is down 51% from where the stock opened on the day of its IPO. Blackstone [BX Loading... () ] is down 37%. As smart as these guys might seem, Cramer can’t figure why anyone would want to own these stocks. Sell them both, he said. And if Cerberus ever comes public, steer clear of it.