CNBC’s Jim Cramer on Wednesday condemned the 2021 rush of speculative SPACs for playing a part in the stock market’s recent weakness.
On “Squawk Box,” Cramer issued a challenge to any SPAC-enthusiast who might want to face-off with him.
“There’s no more ‘Jimmy Chill’ when it comes to SPACs,” he said. “You come on our show and you come out with that nonsense … you have no home here, where I am.”
Cramer was doubling down on comments he made the prior evening on “Mad Money,” when he blasted last year’s flood of special purpose acquisition company deals as well as initial public offerings.
“These newly minted stocks and SPACs are now killing us. It’s the excess supply that’s dragging down the rest of the market,” Cramer said Tuesday evening. “Broken IPOs have emptied the pockets of investors.”
Cramer further elaborated before Wednesday’s opening bell on Wall Street. “I have a really great plumber. I’ve used him for 25 years. If he thinks I’m going to give him a blank check, forget about it.”
SPACs are also known as blank-check companies because their sole purpose is to merge with a private company that wants to become publicly traded. The IPO process, which is a more traditional route to the public markets, tends to be more rigorous.
Cramer on Wednesday also lambasted what he calls robot-generated headlines, telling investors to pause and digest the news before acting. “I just find it revolting that people are doing these headlines,” he said. “Can people just take a breath, listen to the conference call and make a decision before they blow it out?”
Cramer cited the initial drop in Microsoft shares in after hours trading Tuesday after strong earnings. The stock later soared after the tech giant issued rosy forward guidance.
— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
