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Sell 'Garbitrage' Stocks Before They Blow Up

By Jim Cramer

 About this article:
 Garbitrage is coming back to hurt a lot of stocks -- and the people behind them. A few months ago, brokers were willing to lend hedge funds and mutual funds so much money that these borrowers were able to go into managements and threaten a sale. Sometimes they did it because, well, it looked like they just backed into the situation. Take-Two, for example, has a whole series of holders who look like they backed into the situation and endlessly averaged down perhaps without having a clue of what they were really buying. Did Oppenheimer really get into this stock to own 24% of it? How about D.E. Shaw? Tudor? SAC Capital? Some of these funds are simple trading funds. Now they are investors. Did they know that there may not be any there there, and that what is there might get shut down by the Democrats? How...

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