CNBC’s Jim Cramer warned investors Monday not to invest in Brown-Forman, the owner of Jack Daniel’s whiskey brand.
His comments come after 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 shares would normally be a no-brainer in a normal slowdown, but it’s impossible for me to recommend here,” he said.
The reason he can’t recommend the company’s stock is because it’s too expensive, according to the host of “Mad Money.”
“There are all kinds of high-quality companies here with incredibly cheap stocks. No one wants to get their hands on something expensive, even if the underlying story is good,” he said.
The market had a particularly hard day on Monday, with the S&P 500 falling to its lowest level since March last year and closing in bearish territory. The Dow Jones Industrial Average and the Nasdaq Composite also fell.
Despite the news of the collaboration of the two companies, Brown-Forman shares fell 3.42%.
Cramer gave investors his blessing to buy shares of Coca-Cola, though he noted that the shares “are doing well.”
“This is a stock of textbook recession: people will continue to drink their drinks no matter what happens to the economy,” he said.
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