Taking a Pass on Cendant

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Geez, this Cendant's (CD - commentary - Cramer's Take) a tough long. This morning it got clocked back to the $11 level because of its association with Homestore.com (HOMS - commentary - Cramer's Take). To me that seemed like a vicious overreaction.

America-Online (AOL - commentary - Cramer's Take) is the most logical fallout for this Homestore fiasco. I wouldn't even call Cendant's role a secondary role in the alleged fraud. Maybe tertiary would be a better description.

But who wants to buy this Cendant? It has many of the earmarks of exactly what isn't working in this market: a serial-acquiring, opaque company with complex structures that is leveraged, intangible and doesn't pay a dividend. There, isn't that the definition of what you have been avoiding in this rally? Isn't it exactly the depiction of what was wrong about the old market?

Cendant's got a talented guy at the helm, Henry Silverman, who I believe is honest and very intelligent. I think he got bushwhacked by CU International and has had to bear up against that ever since.

But I can't pull the trigger on this stock, not because I don't understand it, but because I fear that others, with big money, will look at it and just say "this one's too hard."

And they will pass on it. If they are going to pass on it, then I have to pass on it. Cendant's just too '90s to buy any more.

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."