NEW YORK ( TheStreet) -- "I'm tired of being tricked," Jim Cramer told his "Mad Money" TV show viewers on a special Halloween episode. Cramer told viewers not to be fooled by the following stocks, as they never offer any treats. "Invest anywhere else," he said. First on Cramer's trick-or-treat list were the airlines. Cramer said just because the plane is full, it doesn't mean the company is making any money. He recalled two horrid investments gone wrong, People's Express and a former incarnation of American Airlines, both in the 1980s. Cramer said the airlines always have fuel problems, high labor costs and are in a business that's highly cyclical. "Don't even think about the airline stocks," he concluded. Next on the list were the gold miners. Cramer said he's recommended some gold stocks on "Mad Money" in the past, only to be disappointed. "No more," he said, as even when these companies deliver their best, it never seems to be good enough. Cramer said investors who want to play gold need to own the bullion or SPDR Gold Shares ( GLD), not the mining stocks. Also on the list, supermarkets. Cramer said this business is cut-throat and has lots of waste. He said stocks like Kroger ( KR), Supervalu ( SVU) and Safeway ( SWY) are just tough to own. Cramer recommended only Whole Foods ( WFM), a healthy play the operates above the competition since they have pricing power. Finally, Cramer offered up two tech stocks, Advanced Micro Devices ( AMD) and Micron Technologies ( MU), two "perennial single-digit midgets." Cramer said these two companies are always getting undercut by competitors and investors need to stay away.
Learning From LosersContinuing with his Halloween theme, Cramer highlighted three stocks that "tricked" him into losing money. He said you can always learn more from your losers than your winners, so investors take heed. Cramer's first misstep was Ancestry.com ( ACOM) , the online genealogy resource that he first recommended in November, 2009. Shares of Ancestry were up 233%, but Cramer didn't recommend ringing the register and instead overstayed his welcome. After two dismal quarters in a row, shares of Ancestry.com slid from $36 to $23 a share after the company raised subscription prices and tried to nudge subscribers into yearly plans. "They blew it," said Cramer, "and so did I." The company continues to forecast weaker demand for their service going forward. Cramer's next trickster was Netflix ( NFLX), which also imploded after it raised prices and tried to spin off its DVD business under the name Quickster. This once $235 stock is now an $82 stock, said Cramer, who is chastising himself for not recommending investors get out sooner. He said when a high-growth stock becomes a battleground, investors must take their money and run. Finally, Cramer noted Lufkin Industries ( LUFK), an oil equipment maker that predicted a new wave of demand with the pickup in U.S. oil production. After two disappointing quarters, Cramer said it's clear that Lufkin is having trouble executing and investors need to steer clear.
Chinese IPO Duds"Don't be taken in by cute costumes," Cramer warned viewers. He said that hot Chinese IPOs may be dressed up like reputable American companies, but in many cases they're far from it and can be hazardous to your wealth. Cramer explained that after years of old, main-line Chinese manufacturing companies coming to the U.S. IPO market, lately the trend has been towards growth names ala dot-coms and solar plays. He said these companies all feature sky-high valuations and cute U.S. equivalents, like "the Chinese Amazon.com ( AMZN)" for example. "Chinese stocks don't have the same disclosures," Cramer reminded viewers, as he noted the recent performance of a few of them. For example, DangDang ( DANG) popped 86% on its first day of trading, only to fall 74% in the open market. Youku.com ( YOKU) soared up 161%, only to fall 31% since. And Qihoo360 ( QIHU) rocketed up 134% and has since fallen 38%. Cramer said on average, these names are down 40% in the after market, which is why he continues to recommend only Baidu.com ( BIDU). Only Baidu, the Chinese Google ( GOOG) has a proven track record, said Cramer, the rest are all hype.