Cramer's Stop Trading! The Most Outrageously Overvalued Ridiculous Thing I Have Seen (5/19/11)

 |  Includes: BIDU, LNKD, NFLX, SINA, TST
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday May 19.


Cramer had strong words about the LinkedIn (LNKD) IPO: "This is the most outrageously overvalued ridiculous thing I have is preposterous. It is wrong." Cramer recalled the IPO of his company, (TST) and his pleading with the Goldman Sachs desk not to do a sliver deal that would offer a tantalizingly low number of shares to create a pop in the stock. "I was screaming to the Goldman Sachs desk, 'Don't do this!'...I have seen this and I have lived through it." He is concerned about the return to the laissez faire policies of the Bush Administration during the explosion of the dot.coms.

Netflix (NFLX) is a better stock than LinkedIn, with a $12 billion market cap, 24 million customers, strong growth and profitability.

Cramer is hoping Sina (SINA) rises higher so he can remove his recommendation; "I feel uncomfortable with any stocks that are levitating like this...they are going to work for a while," but eventually Sina will drop. The only Chinese stock Cramer recommends as an investment is Baidu (BIDU).


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