A clip repeats of CNBC “Mad Money” host Jim Cramer praising undersigned banks as good investments following news that lenders were closed Sunday by regulators following the failure of Silicon Valley Bank. surfaced.
Kramer, who has been lashed out on social media for his stock market predictions being wrong, told viewers on April 12 last year Its signatory banks were certified as “GARP stocks” that embody the principle of “growth at a reasonable price”.
Cramer named Signature, along with State Street, Bank of New York Mellon and Charles Schwab, as “investable” stocks that would benefit from a Federal Reserve rate hike.
Cramer’s Signature Bank plugin glorifies Silicon Valley banks just weeks before the tech-centric lender implodes, and resurfaces days after other clips that caused a major crisis across the U.S. financial sector. bottom.
Cramer has also been criticized for touting First Republic Bank, a San Francisco-based regional lender whose share price fell more than 76% in Monday’s early-morning Wall Street trading.
On the same Friday that SVB went bankrupt, Cramer tweeted:
Kramer said in the signing bank plugin that investors should look to “under the radar financials” instead of buying stakes in big banks like JP Morgan.
Cramer told the “Mad Money” audience last year:
“We don’t invest in hope, we invest in potential. The odds of winning by growing at reasonable prices have rarely looked better.”
“Tonight we got four guys who passed the GARP test,” Cramer said.
The first stock on the list is Signature Bank, which Cramer said is a “New York-based commercial bank with 36 client offices scattered throughout the New York metropolitan area, California and North Carolina.” Stated.
“Signature’s hallmark is that it is a business-oriented bank,” continues Cramer.
“As long as they’re doing consumer facing business, it’s focused on the wealthy — the business owners and senior management who do a lot of business,” he said.
“You can make a lot of money working with them,” added Cramer.
Cramer said he promoted Signature in January. [stock] S&P 500 in 2021
He then boasted to viewers that the signature had “moved too far” and suggested “waiting for a better entry point” to buy shares.
Cramer then flashed chart graphs showing Signature stock had fallen about 17% since January last year.
On social media, Kramer has been gutted again.
“I can’t wait to see what he has to say on his show today! He needs to quit or retire,” wrote one Twitter commentator.
Another Twitter user commented:
One commenter sarcastically said:
Investment gurus seeking to capitalize on Cramer’s poor predictive performance have introduced two exchange-traded funds based on strategies that conflict with those recommended by the CNBC personality.
Last fall, Cramer appeared on CNBC’s broadcast to offer an emotional apology to viewers for promoting Meta stock, whose value plummeted by about 25% in a single trading session.
However, since the apology aired, Meta’s share price has recovered.