It’s time for Sell Block, that part of the show Cramer uses each week to tell you, the loyal Home Gamer, it’s time to take profits or cut losses. First in the block are the homebuilders, namely WCI Communities. Cramer originally liked this stock because Icahn is behind it, but it hasn’t been much of a win – and Cramer’s adamant that investors stay out of the homebuilder industry all together right now. Besides, Icahn’s $22 offer for the company is the only thing holding WCI up, Cramer says.
On a related note, Cramer wants you to take profits in Simon Properties if you have a position in the commercial real estate developer. Simon’s been a big win, and it’s time to ring the register.
Next in the Sell Block: Hologic. Cramer did like the stock at one point, but these days it has a sky-high multiple. It’s priced for perfection, Cramer says – and that perfection might not last. A story in The Wall Street Journal today sites a study that Hologic’s computer-aided detection mammography system – it’s main product line – registers 32% more false positives than when humans do the read.