Market commentator Jim Cramer continued his blitz on Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) in his "Mad Money" program on CNBC at the weekend. Cramer recommended selling three stocks: Allscripts Healthcare Systems (MDRX), Herbalife (HLF) and Mellanox. On Mellanox he said, "I don't like owning stocks where the CFO leaves. The chief financial officer is the key man or woman, the one who handles the books."
Cramer was referring to the resignation of Mellanox CFO Michael Gray in September. "Although the resignation isn't necessarily a sign of trouble, why take chances? If you're putting money to work put it elsewhere. As a matter of discipline, I sell a stock when the CFO unexpectedly announces his decision to leave for personal reasons," Cramer said.
In less than four months, Mellanox's share price has halved, from a peak of $120 in early September, to a current price of just over $60.
On the Tel Aviv Stock Exchange this morning, Mellanox is down 0.65%, at NIS 230.40.
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2012
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