The earlier rally in Valeant Pharmaceuticals Intl Inc VRX on Wednesday might be because someone might be "coloring the tape," Jim Cramer said on CNBC.
According to Cramer, coloring the tape is a situation where traders buy up a stock like Valeant and fooling other people into buying it.
"Why do I want a company where may be or may be not the financials is going to come out. To me it is a sub-optimal situation," Cramer said.
Related Link: Valeant Says Comfortable With Liquidity, Asks Lenders To Ease Some Terms Of Covenants
Shares of Valeant climbed more than $30 on Wednesday after the company said it is "comfortable with its current liquidity position" and also asking lenders to extend the filing deadline of its 2015 annual report to May 31. However, the stock lost its earlier momentum and fell 5 percent.
On Shake Shack Inc SHAK, which was upgraded by Longbow Research to Buy from Neutral, Cramer said "I've always felt that Shake Shack would grow into its market cap."
However, Cramer added, "I am never going to stop anyone from buying the stock."
Shares of Valeant were down 5 percent at $27.50, while Shake Shack was up 3.75 percent at $36.20.
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