Life Partners (LPHI) Continues to Tumble; Cramer Says 'Sell, Sell, Sell!'

Following a 13.6% drop in its stock price on Wednesday on the back of a Citron report, shares of Life Partners Holdings (Nasdaq: LPHI) are falling once again today after being highlighted on Cramer's Mad Money as a Sell.

Starting off with a little technical analysis of Life Partner's price movement, Cramer believes the stock is a "momentum stock that's lost its momentum." He noted that the stock's technical breakout on January 2 was followed by a sell-off on heavy volume, likely signaling that institutions were taking profits. Cramer continued by pointing out that soon after, the stock broke below its 10-week moving average.

Turning to the fundamentals, Cramer said he does not see a much prettier picture. Red flags surrounding executives have popped up across the company: CEO, Brian Pardo has been sanctioned by the SEC for misrepresenting financials at a previous job, and separately, Pardo sent a questionable letter to shareholders in '07 asking for investors to not lend their stock to short sellers.

Cramer also mentions Life Partners legal troubles in Florida and Colorado, admitting that if similar things happen in other states, the company's "business model could take a serious hit."

Shares of Life Partners are down nearly 7% today, most recently trading at $26.75. Notably, the stock is down about 38% year-to-date, which compares to an 8% decline in the S&P 500.

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