Fortress Investment Group’s IPO might have been a boon for its partners, Cramer said, but it was a bust for investors.
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? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org