The Not So Hot Stocks According To Cramer
Jim Cramer, in Friday’s Mad Money Lighting Round , said a company is not deemed as “viable” simply due to its presence in the stock exchange. In fact, Cramer knew of companies that traded well past their “expiration date.” Jim cited the examples of General Motors, American International Group (NYSE: AIG), Fannie Mae (NYSE: FNM), and Freddie Mac (OTC: FMCC), which, despite being on “life support,” still register in millions of trades every day.
According to Cramer, these shares or “zombie securities” should not be in the portfolios of serious traders. GM, for example, filed for bankruptcy and the government took control of it. Despite this, its shares were allowed to trade, which Cramer termed as “the height of irresponsibility.” In case of Freddie and Fannie, investors continued to trade the stocks even when the two entities were nothing more than public trusts. Cramer blamed the regulators and the SEC for letting the public trade these stocks.
In conclusion, Cramer was of the view that the Wall Street is less regulated than any “type of gambling.”
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