'It doesn't matter how little you pay for a stock, when it goes to zero, you lose everything,' the 'Mad Money' host said.
"Believe me, if there was a real chance the common stock would be worth anything, Icahn would've stuck around. He didn't," Cramer said.
Cramer also said if he were running the bankruptcy court, he would prevent shares of Hertz from being traded, helping "keep inexperienced investors from losing money on it." "Instead this darn thing traded 530 million shares yesterday and 295 million today," Cramer said. "The whole float is only 140 million. That's insane."
Cramer, a former hedge fund manager, said he has personal experience about buying stocks that have a risk of being wiped out. He recalled years ago buying stock in a reorganized company, Memorex-Telex, in hopes it had emerged from bankruptcy proceedings stronger than before. "But it didn't. It filed for bankruptcy again. We lost the whole investment," Cramer said. "Taught me a valuable lesson: it doesn't matter how little you pay for a stock, when it goes to zero, you lose everything. At least it stopped at zero."
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Investors flout logic, buying up Hertz and other bankrupt companies' stocksInvestors are piling into stocks of bankrupt companies, wagering against a court process that routinely wipes out shareholders.
続きを読む »
Stocks continue to climb on recovery optimism — Cramer and four others on what's nextStocks continued their climb on Monday on optimism over a recovering economy. Here are five experts on what's behind the rally.
続きを読む »
Cramer urges investors to be wary of airline and cruise stocks — buy these 5 winners insteadThe 'Mad Money' host argued Facebook, AMD, Apple, Amazon and Nvidia are stocks that can go higher based on their own strengths. 'That's why I keep going back to them, and you should too,' he said.
続きを読む »
S&P 500 rally hits pause – Cramer and two others on what's nextThe S&P 500 fell on Tuesday following the market's recent rally on reopening plans. Three experts weigh in on what could come next.
続きを読む »
Cramer on rampant market speculation: 'I've never seen so many games played with stocks'Jim Cramer cautioned investors against trading volatile stocks popular on social media and said they should look at buying fractional shares of bigger companies instead.
続きを読む »
Robinhood traders are piling into Hertz, JCPenney, and other bankruptcy stocks despite the massive risks | Markets InsiderRobinhood traders are betting on bankrupt companies including Hertz and JCPenney, even though shareholders tend to be losers in the bankruptcy p...
続きを読む »