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NEW YORK (TheStreet --

Debra Borchardt:

(CRM) - Get, inc. Report

is trying to sell their stock for a cheaper price, looking at doing a 4-for-1 stock split. This way it'll be more affordable for the little folk. So Jim, how does an investor trade around something like that because usually you see a 2-for-1. ... This is a 4-for-1.

Jim Cramer:

I think Marc Benioff, the CEO, is doing something that's very smart here. I think he's tired of having his stock be footballed by hedge funds, which is what happens when you have a very high-priced stock, and it's going to be run up and down by hedge funds that have enough money to be able to buy a lot of shares or by people who play in options. Now I know that it creates no value. A split creates no value whatsoever. But I think that we're in a battle of holders. Can you get the right holders vs. the wrong holders? Now I know this from

Mad Money

. People like to come on the show

Mad Money

because I have the right holders who watch the show. I've got individuals who are looking for a good stock.

Debra Borchardt:

Real people.

Jim Cramer:

Right. They're looking for a good stock, don't want to flip it, really want to own something that is very good and go for a little ride as long as the fundamentals hold up. But these stocks are too expensive. Now there had been another school of thought, which just said, "Warren Buffett is right," which is just let the stock run to the sky, and

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, which is an actual owners-plus-type company, as well as Apple, and Salesforce is not an Action Alerts PLUS name, but you are alienating a substantial number of people who would like to own the stock.


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doing it ...


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... These are all companies that have decided that the Buffett way is right. I know that to talk about a split is fatuous. It's a fatuous thing to split the stock, but if you're trying to get better holders it's going to work, and I think that's why you see the stock higher.

Debra Borchardt:

All right, so better holders except for the insiders. We've had 16 insider sells in the last few months, so that's a little...

Jim Cramer:

There's been consistent insider selling the whole way.

Debra Borchardt:

That makes people a little nervous.

Jim Cramer:

There's been consistent insider selling the whole way. I think the company's fundamentals are good. I always leave this one to people ... Decide whether the fundamentals are good, but you're paying too much for it. It's very expensive stock.

Debra Borchardt:

Book value is $14.65. P/E 85 ... That seems rich.

Jim Cramer:

Well look...Netflix is very highly valued. So is Amazon. And there are a couple stocks that have broken out of the orb of valuation, and it's always been a sucker play over the long term to be in those, but over the short term it's produced tremendous returns, and I always say to use deep-in-the-money calls for these because I'm afraid they'll go down so big on a swoon ...


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from $400 to $300 ... But I think it's important to point out that the stock is reacting positively because people want to own the stock but it has been too expensive per share.

Debra Borchardt:

All right. So now they do the 4-for-1 stock split. People can get into it that couldn't get into it earlier, and that's a boon and positive for the stock.

Jim Cramer:

They will choose. Yep. Exactly right.

Debra Borchardt:

All right. There you go. Here comes your chance, folks. If you want, it's going to be a little bit cheaper pretty soon for you.

-- Written by Debra Borchardt in New York.

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Debra Borchardt


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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.