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Cramer: Exit These Two Stocks, Immediately!

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They may be household names, but on Tuesday's broadcast Jim Cramer said two companies had no business in your portfolio.

1. Hewlett Packard

In the case of this computer titan, the Mad Money host says the culture at the company has been broken for a very long time – and that's reason enough to stay away.

"First, Hewlett-Packard has gone from an innovator to an assembler. It takes Intel chips andMicrosoft software and puts them in a machine," he said.

What's wrong with that?

A lot of other companies do the same thing – and Apple does it for customers who are so loyal - they could be considered a cult.

"Second, HP sells printers," Cramer said. "Again a lot of other companies sell them too and the profit-margins and revenues are beginning to drop precipitously."

"Third, Hewlett-Packard moved aggressively into consulting and services when it bought GME, but now they're being carved up by Accenture, IBM and SAP," explained the Mad Money host

"Finally, it tried to crushCisco for communications equipment, but Cisco has since vanquished them on this initiative, too.

For these reasons alone, Cramer thinks H-P is a sell.

But it gets worse – Hewlett Packard is now grappling with allegations of fraud tied to the acquisition of its Autonomy software unit. Read More: Hewlett-Packard Walloped by Charge Relating to Fraud"I am a huge believer that when you have accounting irregularities, you have to sell," said Cramer. Period. End.

2. Best Buy

The Mad Money host conceded there's speculation that the company could be ripe for a takeover but added that alone is not enough reason to buy Best Buy.

Investors must also consider fundamentals and at Best Buy he said fundamentals are on the decline – with terrible same store sales losses as well as a dramatic decline in cash flow providing two examples.

"Those are twin killers to anyone who wants to attempt to acquire this mess," said Cramer.

Also, competition in the space is fierce.

"The simple fact here is that Amazon has been crushing these guys, while Costco and Wal-Mart aren't taking any prisoners in the electronics space, either," he added.

What's the bottom line?

"If you don't own Best Buy or Hewlett-Packard or any of their ilk, take a pass. If you do, take advantage of any bounce and exit immediately," said Cramer.

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