While Cramer feels there is something to salvage at Starbucks and Bear Sterns, that's not the case with the firings at Sallie Mae (SLM Quote - Cramer on SLM - Stock Picks) and Krispy Kreme (KKD Quote - Cramer on KKD - Stock Picks). The former, he points out, are broken stocks, while the latter are broken companies with considerable earnings risk.
Sallie Mae's business is changing, Cramer said, with more students opting for grants instead of loans and more graduates defaulting on the few loans they have. Business is so bad, Cramer inducted CEO Albert Lord to the top spot on his "Wall of Shame." Krispy Kreme, Cramer says, "is sinking, no matter who runs it." It has a history of no real earnings and closing stores because franchisees are losing money. Cramer said he "would not touch KKD with a 10-foot pole."


