CNBC’s Jim Kramer on Monday warned investors not to invest in Brown-Foreman, owner of Jack Daniel’s whiskey brand.
His comments come after the announcement that the company is partnering with Coca-Cola to produce canned cocktails from Jack and Coke.
“This is a very difficult market. It has incredibly high standards. Brown-Foreman shares would usually be meaningless with a normal delay, but it is impossible to recommend it here,” he said.
The reason he can’t recommend the company’s shares is because they are too expensive, according to the host of “Mad Money”.
“There are all kinds of high-quality companies here with incredibly cheap shares. “No one wants to stand up for something expensive, even if the main story is good,” he said.
The market had a particularly difficult day on Monday, as the S&P 500 fell to its lowest level since March last year and closed in a bear market. The Dow Jones Industrial Average and Nasdaq Composite also declined.
Despite news of cooperation between the two companies, shares of Brown-Forman fell 3.42%.
Kramer gave his blessing to investors to buy shares of Coca-Cola, although he noted that the shares “just do well.”
“This is a recessionary stock of textbooks – people will continue to drink, no matter what happens to the economy,” he said.
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