Sell Block
During his "Sell Block" segment, Cramer urged viewers to take
Under Armour (UA Quote - Cramer on UA - Stock Picks) off the table. He said it is a high-multiple stock that has lost its momentum.
Usually when he hears about increases in inventory from a company during a conference call, it is a read flag, Cramer said. But when he heard about it from Under Armour he went against his rules and thought it was OK to buy it because the company's CEO Kevin Plank was so positive on the stock.
Then three insiders sold some positions of their stock. Cramer said he doesn't know why these insiders sold, but they crossed a line. He said he doesn't believe Under Armour would have been up nearly as much after its inventory increase if he hadn't championed it.
Cramer said he feels like a dope because these three insiders were able to sell their stock at higher prices.
Moreover, he said the company is losing momentum. He also said retail is a tough place to be right now and the remaining markets Under Armour wants to get into are going to be defended like crazy by competitors like
Nike (NKE Quote - Cramer on NKE - Stock Picks).
"Sell Under Armour," Cramer said.
On a side note, he also advised viewers to sell the four horsemen of the mortgage crisis:
PMI Group (PMI Quote - Cramer on PMI - Stock Picks),
MGIC Investment (MTG Quote - Cramer on MTG - Stock Picks),
MBIA (MBI Quote - Cramer on MBI - Stock Picks) and
Ambac Financial Group (ABK Quote - Cramer on ABK - Stock Picks).
TheStreet.com Staff
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