Jim Cramer says to avoid buying shares of Jack Daniel’s distiller for this reason

Jim Cramer says to avoid buying shares of Jack Daniel’s distiller for this reason


CNBC’s Jim Cramer on Monday warned investors against investing in Brown-Forman, the owner of whisky brand Jack Daniel’s.

His comments come on the heels of the announcement that the company is partnering with Coca-Cola to produce canned Jack-and-Coke cocktails.

“This is a very tough market. It has incredibly high standards. Brown-Forman stock would normally be a no-brainer in a normal slowdown, but it’s impossible for me to recommend here,” he said.

The reason that he can’t recommend the stock of the company is that it’s just too expensive, according to the “Mad Money” host.

“There are all kinds of high quality companies with incredibly cheap stocks here. Nobody wants to stick their neck out for something pricey, even if the underlying story is a good one,” he said.

The market had an especially tough day on Monday, with the S&P 500 falling to its lowest level since March of last year and closing in bear market territory. The Dow Jones Industrial Average and Nasdaq Composite also recorded declines.

Despite the news of the two companies’ collaboration, shares of Brown-Forman fell 3.42%.

Cramer gave investors his blessing to buy shares of Coca-Cola, though he noted that the stock is “just doing okay.”

“This is a textbook recession stock — people will keep drinking their beverages regardless of what happens to the economy,” he said.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

‘F1’ is Apple’s highest-grossing theatrical film ever
Business

‘F1’ is Apple’s highest-grossing theatrical film ever

Still from Apple’s “F1.” Apple Lights out and away we go. “F1: The Movie” hasn’t even reached the checkered flag of its theatrical run, but it’s already Apple’s best film release ever. The film, distributed by Warner Bros. Discovery, zoomed past $293 million at the global box office over the weekend. This outpaced Ridley Scott’s […]

Read More
Family offices ramp up deal-making in June with bets on biotech
Business

Family offices ramp up deal-making in June with bets on biotech

Key Points After a slow spring, investment firms of the ultra-rich made 60 direct investments in June, according to Fintrx. Family offices flocked to biotech and health-care firms such as Antheia, seeking to make an impact and returns at the same time. Antheia founder Christina Smolke told CNBC’s Inside Wealth family offices’ patient capital makes […]

Read More
How Netflix keeps luring big-name directors away from the traditional box office
Business

How Netflix keeps luring big-name directors away from the traditional box office

Film directors Rian Johnson (L), Greta Gerwig (C), and Guillermo Del Toro (R) Getty Images Netflix isn’t interested in bringing movies to theaters. The company’s leaders have said they see theatrical movie releases as an “outdated” model. Yet for more than a decade, the streamer has lured in some of Hollywood’s biggest directors to make content […]

Read More