Why Jim Cramer Says Sell Family Dollar (FDO) Stock

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Dollar General  (DG) can pay up to $90 a share for Family Dollar  (FDO) and still make money on the acquisition, but Family Dollar is now talking about antitrust concerns, which is a red flag for Cramer.

When he hears "antitrust" and knows that the lower class goes to dollar stores, then he thinks Family Dollar is onto something and that Dollar General would be blocked from acquiring the company. Cramer says Dollar General could keep Family Dollar in limbo for a long time or could simply destroy it if it wanted to do so. Dollar Tree  (DLTR) , though, is ready to go.

Cramer said he initially dismissed the antitrust concerns, but now he thinks they are real and urges caution for investors. In fact, he advises selling Family Dollar stock.

Must Watch: Jim Cramer Says Family Dollar's Antitrust Issues Are a Red Flag

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

FDO Chart FDO data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Oil Falls Sharply After Saudi Arabia, Russia Suggest Production Cut Easing

Oil Falls Sharply After Saudi Arabia, Russia Suggest Production Cut Easing

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves