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Sell Block: Fortress Is Castle in the Sand

Thursday, 28 Feb 2008 | 8:26 PM ET

Fortress Investment Group’s IPO might have been a boon for its partners, Cramer said, but it was a bust for investors.

Mad Money Sell Block
Mad Money's Jim Cramer tells you which stocks you ought to be selling right now, either to take profits or to cut your losses.

Chairman and CEO Wesley Edens cashed in over $200 million in stock that day in February 2007. Some partners took home as much as $100 million. But investors who bought the stock at its hyped-up $35 opening – despite being priced at $18.50 – are deep in the red. Fortress closed Thursday at $14.42.

FIG’s holdings – Gate House Media, Aircastle and Brookdale Senior Living – are sucking wind. So much so that Cramer said he thinks the company’s dividend is at risk. Especially if a Democrat takes the White House and raises taxes – right when FIG can least afford it.

“Don’t let the fallout from [Eden’s] calamitous mismanagement end up hurting you,” Cramer said. He’ll only “cause more pain if you don’t sell soon.”

Watch the full video for a point-by-point breakdown on why Fortress Investment Group is a sell, sell, sell.

Questions for Cramer? madmoney@cnbc.com

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