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Mad Mail: Is Chipotle Mexican Grill a Buy?

Last Friday, Chip in Texas stumped Cramer when he asked about Modus LinkGlobal Solutions . Tonight, he has done the

homework and is ready to do some housekeeping.

MLNK is a tiny, $450 million company, that helps technology companies with procuring their raw component inventory, along with managing storage, manufacturing and distribution of their proprietary products. It also assists tech companies with their e-businesses and aftermarket services like returns' management. The company’s latest quarter was solid, but this is a stock that’s had a 523% rise from its low of $1.63 on March 9th. Cramer doesn't see any concrete catalysts that would propel it much higher in the near future. Plus, MLNK is extremely reliant on a small number of customers. Its ten largest customers accounted for 69% of sales in 2009. Cramer thinks it's time to ring the register. This one’s just way too risky.


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Jim: A big time USC, why did Pete Carol leave? I live in NJ, but am truely from CA booyah-to-ya! I'd like to thank you for truly dedicating yourself to the average person who wants to learn about investing…I acquired Allos Therapeutics at $6.36 and the stock is up approximately 22%. Last week I found out that the CEO sold large amounts of his shares as recently as early January. In general, what does this indicate? Should I get out of a stock when I see these types of transactions?- Thank you, Raj

Cramer Says: "Typically the CEO's of these bio-tech companies are very concentrated in the stock. I think when you see a sale, it shouldn't take your breath away. These guys like to diversify. I like the profile of ALTH. I think you should stay..."


Hi Jim: Booyah! I have a question about one of Danny Meyer's hospitality picks, ChipotleMexican Grill. The company is currently running a stock buyback program. Ordinarily I would think that is a good thing, but CMG is supposed to be a growth company. Shouldn't they be using their money to open more stores instead of buying back stock? -Thanks, Jon


Cramer Says: "Typically I would say, yes, to that, but a lot of companies spew off so much cash that they can afford to do a buy-back and not slow down. I would put Chipotle in that category."


Hi Jim: Love the show. Papa-razzi-boo-yah-to-ya from Chicago. When are you going to have Lady Gaga on the show? More importantly, wouldn't finance reform strengthen banks by reducing risk and reducing executive bonuses that draw criticism? Shouldn't this then increase shareholder confidence driving stock prices up? Doesn't the government have some right to make changes, considering many of these banks might not still be around if it weren’t for TARP? -Chris, Chicago, IL

Cramer Says: "I think they should make changes. I've said over and over again that if you take TARP money you should take that bonus money and tax it, tax it, tax it. ...above what the regular guy makes because they have no right to give themselves those big bonuses. I want to tax it and take that money and start a jobs' bank, a small business jobs' bank. That's what I want to do... Do I want more regulation? I want better regulators."

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