Beware Advice from Jim Cramer (CMED, GE)

Includes: CMEDQ, GE
by: Ezra Marbach

According to Jim Cramer made the following remark about recent China IPO China Medical Technologies (ticker: CMED) during his popular "Mad Money" TV program yesterday:

....A caller asked if China Medical Technologies (ticker: CMED) might be a good way to play the growth in hospitals in China.

Cramer said that CMED was a speculative play and that he was uncomfortable with it because of Chinese medical companies' tendencies to make unsubstantiated claims.

The best way to play the growth in Chinese medicine, he said, is to buy U.S. medical technology companies that do business in China such as General Electric (ticker: GE).

Comment: According to China Medical's recent IPO filing General Electric (ticker: GE) owns a substantial stake in its business (see here). Does Cramer know this? It sure doesn't appear that way.

CMED chart.