'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."
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