
Jim Cramer -- This Rally Is 'Not Sustainable'; Tesla, GoPro Are 'Cult Stocks'
Jim Cramer, TheStreet's portfolio manager for Action Alerts PLUS and host of CNBC's "Mad Money," believes the recent market rally is "not sustainable." Answering viewers' questions from social media on the floor of the New York Stock Exchange, Cramer said the rally is rolling into the oil and industrial stocks, both of which do not have high quality earnings growth. Cramer said he wouldn't get caught up in the rally.
A viewer asked, "Jim, is WhiteWave (WWAV) still a long hold?' Cramer said, "WhiteWave is a problem. Two different analysts have said you should buy it ahead of the quarter and the stock has not reacted well. One of the reasons is that we have to hear what Whole Foods (WFM) has to say and the other is that Hain Celestial (HAIN) - Get Report reacts really badly. My take on WhiteWave is wait to see what they say and if it's down a little, buy it."
Several viewers were asking about Tesla (TSLA) - Get Report and why shares climbed despite the automaker's third-quarter miss. Cramer calls Tesla along with GoPro (GPRO) - Get Report , Fitbit (FIT) - Get Report and Shake Shack (SHAK) - Get Report "cult stocks." He said, "It's like they like GoPro and then they cool on GoPro and then they cool on the stock."
"Cult stocks"" do not trade on earnings and tend to trade on how people feel about owning them. For Tesla, Cramer said it's not about actual earnings, the way the stock trades has to do with people liking the car.
Another viewer asks about Kinder Morgan (KMI) - Get Report . Cramer said, "Kinder Morgan has very little growth, I think that's part of the problem." He prefers other energy names in the space which he believes are higher quality, he said.
There has been a lot of talk about the impact of drug prices. Every time one of the presidential candidates brings up the issue, pharmaceutical and biotech shares get hit.
Cramer said don't expect this to end anytime soon: "Everyone talks about reining in drug pricing, but the only way to rein in drug pricing is to have Medicare bargain with the pharmaceutical companies, and I'm not hearing Hillary say that. Otherwise it's all just saber rattling. Every time the sabers are rattled, these stocks will go down."
Cramer answers viewers' social media questions during a daily segment with TheStreet TV. Find him on Facebook (FB) - Get Report and on Twitter (TWTR) - Get Report . Send him questions on Twitter @JimCramer, using #CramerQ.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS was long FB, TWTR and WWAV.








