In this article, we discuss the 5 stocks that Jim Cramer doesn’t like. If you want to read about some more stocks that Jim Cramer does not like, go directly to Jim Cramer Doesn’t Like These 10 Stocks.
5. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 19
Lithium Americas Corp. (NYSE:LAC) operates as a resource firm. On April 25, during the Lightning Round segment of his show, Cramer gave the company a Sell rating. In his program, Cramer advised a person asking a question to “sell that stock, because it won’t stay like that”.
On March 18, investment advisory Canaccord maintained a Speculative Buy rating on Lithium Americas Corp. (NYSE:LAC) stock and lowered the price target to C$50 from C$54. Analyst Katie Lachapelle issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Singapore-based investment firm Himension Capital is a leading shareholder in Lithium Americas Corp. (NYSE:LAC) with 2.3 million shares worth more than $68 million.
In its Q1 2021 investor letter, Massif Capital, an asset management firm, highlighted a few stocks and Lithium Americas Corp. (NYSE:LAC) was one of them. Here is what the fund said:
“Lithium Americas: The volatility noted above in Lithium Americas Corp. (NYSE:LAC) has resulted in solid returns via our options trades around our core equity position. At the current time, we are short calls on LAC, as we have done multiple times throughout the position’s life, expiring on May 21, 2021, at a $17.5 and $22.5 strike price. The volume of contracts sold at each strike corresponds to the size of the equity position we want should the calls expire in the money, and the underlying equity gets called away from us. The thought process behind this trade construction is that if we know the size of the position we want at a particular price point, there is no reason not to accumulate additional returns by pre-selling the stock we would have sold anyway.
High levels of volatility positively impact the price of options, increasing the premium we can earn from selling covered calls. To date, we have sold covered calls on Lithium Americas Corp. (NYSE:LAC) that have expired worthless four times, yielding a roughly 7% return on the equity position’s current value or 71bps for the portfolio overall. The outstanding covered calls appear to be trending towards a similar worthless expiration. If they do, the covered call trades on Lithium Americas Corp. (NYSE:LAC) will result in us owning the shares with committed capital of -$0.28 per share.
Although we believe in the..” (Click here to see full text)
4. Fluor Corporation (NYSE:FLR)
Number of Hedge Fund Holders: 20
Fluor Corporation (NYSE:FLR) provides construction and engineering services. Cramer was bearish on the company while discussing it during the Lightning Round segment of his show on April 26. The finance journalist, answering an on-air question about the company, said that “under no circumstance do you want to buy Fluor, that business is way too hard”.
On February 23, Baird analyst Andrew Wittmann upgraded Fluor Corporation (NYSE:FLR) stock to Outperform from Neutral but lowered the price target to $29 from $30, noting that revenue, earnings, and backlog were all expected to reflect positively on the shares.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Rubric Capital Management is a leading shareholder in Fluor Corporation (NYSE:FLR) with 2.9 million shares worth more than $72 million.
3. Tilray, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 20
Tilray, Inc. (NASDAQ:TLRY) produces and sells cannabis products. Cramer gave the stock a Sell recommendation during the Lightning Round segment of his show on April 26. Answering a query about the company, the former hedge fund manager said that “until we get federal legislation, period, these stocks are impossible to own”.
On May 2, Alliance Global Partners analyst Aaron Grey maintained a Neutral rating on Tilray, Inc. (NASDAQ:TLRY) stock and lowered the price target to $5.5 from $8, noting that the firm had a difficult path ahead with factors outside its control to achieve revenue growth targets.
At the end of the fourth quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $118 million in Tilray, Inc. (NASDAQ:TLRY), compared to 16 in the previous quarter worth $84 million.
2. Tenneco Inc. (NYSE:TEN)
Number of Hedge Fund Holders: 26
Tenneco Inc. (NYSE:TEN) sells auto parts and related equipment. Cramer gave the firm a Sell rating during the Lightning Round segment of his show on May 2. When asked about the fortunes of the company and whether or not he would recommend buying the stock, Cramer highlighted the competition, like Magna, and said that he would rather own Magna.
On February 24, investment advisory Jefferies downgraded Tenneco Inc. (NYSE:TEN) stock to Hold from Buy but increased the price target to $20 from $15. Bret Jordan, an analyst at the firm, issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Atlanta-based investment firm GMT Capital is a leading shareholder in Tenneco Inc. (NYSE:TEN) with 1 million shares worth more than $11 million.
1. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 83
Twitter, Inc. (NYSE:TWTR) owns and runs a social networking platform. Cramer gave the stock a Sell recommendation during the Discussed Stock segment of his show on April 25. The journalist investor was bearish on the stock, going as far as to say that the firm was “a case study in how not to run a company”. He highlighted that the company now needed someone like “Elon Musk taking it private to fix its many problems”. Cramer also said that the firm was a “worst-of-breed company”.
On April 28, Piper Sandler analyst Thomas Champion kept a Neutral rating on Twitter, Inc. (NYSE:TWTR) stock and raised the price target to $51.50 from $46. The analyst, in an otherwise bullish investor note, noted that the firm had “disconnected from fundamentals”.
At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in Twitter, Inc. (NYSE:TWTR), compared to 94 in the preceding quarter worth $6.3 billion.
ClearBridge Investments, in its Q4 2021 investor letter, mentioned Twitter, Inc. (NYSE:TWTR). Here is what the fund has to say in its letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Twitter, Inc. (NYSE:TWTR) shares sold off following weaker than expected third-quarter results, but under new leadership, we see the potential for improved execution and performance as live events and entertainment return to pre-pandemic levels.”
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