GO
Loading...

Cramer’s Warning to Short-Sellers

Hedge fund managers who bet against individual companies they perceive as being overvalued better go on more than just too much price appreciation, “Mad Money” host Jim Cramer said Monday.

Case in point—Monday was a “real bad day for people who bet against these hyper-momentum stocks,” he said.

Michael Kors, for example, was already up 50 percent since December before it reported a “gigantic” number Monday. KORS subsequently jumped 27 percent, and Cramer believes the marginal buying came from hedge fund managers who made a short bet .

Fossil was also overvalued going into the quarter and released disappointing revenues before the bell Monday.

“When Fossilfailed to break down horribly at the opening, as many thought it should, the shorts pressed their bet, layering on a whole new layer of short stock,” Cramer said.

But then the company’s conference call spoke about earnings that were about to accelerate, and the stock surged 14 percent.

“Memo to short-sellers: Bet against companies when something’s wrong, not when their stocks seem to have run up too much,” Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book