Cramer: 3 Stocks to Avoid
Some of Cramer's best ideas come from "Mad Money" viewers. If a home gamer asks him about a stock he isn't familiar with, he makes sure to do his research and address it at a future date. What follows are some of those stocks.
On Feb. 14, Joyce in Texas asked Cramer about United Stationers . To Cramer, it seems to have taken share in the highly fragmented office supply distribution business. Instead of competing against Office Depot or Staples , it supplies these retailers. Its stock climbed by 16 percent after reported a positive quarter on Feb. 10, but has recently fell by 4 points. Cramer thinks it will continue to fall, as the economic recovery has become vulnerable to higher gas prices. Should the price of gas climb, people will have less money to spend on office supplies. He would avoid this stock right now.
Last Tuesday, Al in New Jersey asked about Ironwood Pharmaceuticals . A speculative development stage biotechnology company, Cramer said it has no product revenues or profits. It has, however, partnered with Almirall and Forest Labs to create a drug that treats chronic constipation and irritable bowel syndrome with constipation. The drug still needs to win approval from the U.S. Food and Drug Administration. If approved, the drug could bring Ironwood $2.4 billion in sales. Cramer doesn't think this drug alone is reason enough to own Ironwood shares.
Finally, Scott in Pennsylvania wanted Cramer's call on Navios Maritime Partners . A master limited partnership, it owns 12 dry-bulk shipping carriers, meaning ships that carry iron ore, coal, grains and fertilizers. Its stock boasts a 8.6 percent dividend yield, which Cramer thinks is safe for now. The company has long-term charter contracts with high-quality counter-parties that can guarantee a consistent revenue stream. The "Mad Money" host is concerned about the overall dry-bulk shipping industry, though. He thinks there are too many ships in the market.
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