"Don't overstay your welcome," Cramer warned viewers in the Thursday "Sell Block" segment. He said investors they must ring the register if they own any recent Chinese IPOs.
Youku is up 234%, while Dangdang is up 100% and SemiLEDS is up 54%. But Cramer said while he loves a hot deal, he also fears greed, which is why investors must lock in their gains and at least sell half their positions to play with the house's money.Cramer said the Chinese IPO market is littered with failures, like Mecox Lane (MCOX), which came public at $11 and traded to $17.50 before sinking under $7. Other Chinese bellwethers like China Unicom (CHU) have also fallen, he said, as has China Cache (CCIH) and Ming Yang Wind Power (MY). Chinese Internet darling Baidu (BIDU), with its massive sustained growth, is the exception, not the rule, said Cramer. He said most Chinese IPOs, especially non-Internet IPOs, go nowhere.
Strong BrandsIn the "Executive Decision" segment, Cramer spoke with Michael Mendes, chairman and CEO of Diamond Foods (DMND), which is up 15% since Cramer last spoke to Mendes on Oct. 15 and one that just delivered a four-cent a share earnings beat on revenue that was up 40%. Mendes said Diamond Foods' growth has been built on the strong investment in their brands. He said the quality of the product, its packaging and promotion are all growing nicely. When asked about competition, Mendes said that consumers want choice when it comes to their snack foods. He said there are plenty of opportunities for innovation and Diamond is answering what consumers and retailers both want, value. Mendes also highlighted the company's upcoming Super Bowl promotions, saying that consumers will see plenty of in-store advertising for their snack foods as well as unique social media campaigns surrounding the event. Turning to the company's financials, Mendes explained that so-called "slotting" fees charged by retailers to initially begin carrying an item are a negative against revenue, but, he noted, they are a one-time expense and Diamond sees the benefit by the following year. Cramer continued his recommendation for Diamond, a company that's growing four times faster than traditional consumer packaged goods companies.
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