Cramer Remix: Stay away from Monster Beverage's stock
Cramer Remix: Stay away from Monster Beverage's stock · CNBC

In This Article:

  • "When you get a situation like Monster where a stock keeps getting mauled by the bears, but a couple of heroic analysts remain bullish, that's not a fight you want to be involved in," CNBC's Jim Cramer says.

  • "If the bulls at Credit Suisse turn out to be correct, well they'll look like geniuses. But there are very real worries here, which is why I am hesitant to stick my neck out on this one," the "Mad Money" host says.

  • "I cannot stress this enough: we're at the start of an IPO season that looks on track to bring a trillion dollars' worth of companies public," he says.

CNBC's Jim Cramer reminded investors not to step into a battleground stock, a situation where passionate bears are in a standoff with passionate bulls and there's no where to go.

"When you get a situation like Monster where a stock keeps getting mauled by the bears, but a couple of heroic analysts remain bullish, that's not a fight you want to be involved in," the "Mad Money" host said. "Believe me, there are lots of easier ways to make money."

Shares of Monster Beverage MNST  have run more than 10 percent this year. That trails the S&P 500's 13-plus percent gain, and the stock is nearly 5 percent under its price a year ago.

Credit Suisse and Morgan Stanley on Thursday offered dueling perspectives on the energy drink maker with the former putting faith in the company and the latter cutting numbers, Cramer noted.

"If the bulls at Credit Suisse turn out to be correct, well they'll look like geniuses," he said. "But there are very real worries here, which is why I am hesitant to stick my neck out on this one, especially with Monster selling at 24-times next year's earnings estimates, much higher than the average stock. Not exactly a value play."

Cramer's full insight here

Stock prep

Lyft's LYFT  $87 opening price is a "win for the system," even though it may have been a loss for investors that were overeager, Cramer

"I cannot stress this enough: we're at the start of an IPO season that looks on track to bring a trillion dollars' worth of companies public," the host said. "These deals will be the big story going forward."

Next week, Cramer is anticipating retail data on Monday and March employment results on Friday. Earnings results from Walgreens WBA , Constellation Brands STZ , and others will come in between those days.

See Cramer's game plan here

Takin' one for the time

Tim Sloan's decision to step down as chief of Wells Fargo WFC hinged in part on a looming congressional committee meeting on banks next month, Cramer said.