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By Lee Brodie | CNBC – 1 hour 44 minutes ago
They may be household names, but on Tuesday's broadcast Mad Money said two companies had no business in your portfolio.
1. Hewlett Packard (HPQ)
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 (INTC) chips and Microsoft (MSFT) software and puts them in a machine," he said.
2. Best Buy (BBY)
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 (AMZN) has been crushing these guys, while Costco (COST) and Wal-Mart (WMT) 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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发表于 2012-11-21 09:55 AM
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发表于 2012-11-21 10:46 AM
