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The Twitter Factor

Monday, 9 May 2011 | 6:48 PM ET
No Huddle Offense
Twitter is unlikely to be useful to most money managers, but you can identify areas that are too hot. Cramer says his followers on Twitter were touting Citi, but the company's earnings profile is not enough to propel it higher.

“Touting on Twitter may mark a top that means sell, sell, sell. Not buy, buy, buy," Cramer said Monday.

In other words, the "Mad Money" host thinks that if people are promoting a certain stock on Twitter, investors should consider selling or at least being very careful with that stock.

Take silver , for example. After many of Cramer's followers endlessly promoted the metal, he told viewers the stock was too hot to handle.

Last week, the spotlight shifted to Citigroup . Cramer said his followers wanted him to push Citi ahead of the 10-for-1 reverse split that went into affect Monday morning.

“That non-stop emphasis led me to believe that, like silver, there's too much hot money in Citigroup," he explained.

Cramer emphasized that he likes Citigroup as a long-term investment, but will not push it or any other bank stock short-term because of the relentless government pressure. He also said that while the stock has a small price tag, Citi’s earnings profile is not great enough to propel it higher.

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