Cramer: The Hertz IPO could hurt you!

Cramer already endorsed the NYMEX (NMX) IPO and the KBR (KBR) IPO, but he panned the Hertz (HTZ) IPO.

Cramer said the IPO to avoid this week is Hertz (HTZ). He thinks this one can burn you. This is where the sellers of the IPO make a lot of money, but the new buyers can be left holding the bag. He thinks it can end up being just like the Seally Corp. (NYSE:ZZ) IPO and he won't touch it with a pole.

He said the first thing is to do no harm. He won't use the Vonage Holdings (NYSE:VG) or the Burger King Holdings (NYSE:BKC) deal, but he thinks it will be a disappointment.

This was sold to a private equity group for $15 Billion and the new sale is 27% being sold. They have increased the debt and knocked down earnings. The $16 Billion of the IPO, but over $900 million of the IPO is funding a special dividend and another $400 million is essentially another dividend. The 3 firms also have 7 of 9 board seats and this is one that you need to avoid.

He thinks it won't go above $20.00 after the IPO any time soon and the downside is just too hard to calculate.