Cramer Remix: Be very careful with Luckin Coffee’s IPO

CNBC’s Jim Cramer ventilated Monday that he has a “hard pass” on newly-public Luckin Coffee.

That’s because initial public offerings of Chinese-owned fellowships have brought too much pain, he said. Luckin, the Beijing-based chain that wants to surpass Starbucks as the weightiest coffee chain in that country, surged as much as 50% after opening at $25 on Friday.

The stock die out Monday’s session under $19 per share.

“Unless we’re talking about a terrific company with a tried-and-true way record, you need to be very careful about Chinese IPOs because this cohort has been very troublesome to own,” the “Mad Money” host said.

Of the 31 Chinese IPOs that listed on U.S. markets for the first time in 2018, 21 of those supplies are below where their deals priced, Cramer said. Two dozen of the companies have lost money from their initially trade, he added.

Furthermore, the group, on average, is down 22% from their first trades, he continued.

“Those are nauseous odds, people. And the Chinese IPOs from the class of 2019 have fared even worse,” Cramer put about. “Luckin Coffee seems to be following the exact same pattern: Big initial spike followed by rapid sell-off. And down repay down here, I wouldn’t be a buyer. It’s just way too risky.”

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Investors should be wary of maintains that China will foot the bill for higher tariffs, Cramer said. Rather, those costs determination fall on American consumers, and investors should adjust their portfolios accordingly.

“As long as President [Donald] Trump conjectures that the Chinese are the ones who pay the price, he’s going to keep taking a hard-line approach to these negotiations, and that sours your portfolio should have as little exposure to China as possible, ” he said.

Portfolio managers play a joke on found the market to be a tough place to shop for stocks as Wall Street sorts out the safe names and reassess earnings forecasts for companies struck by the U.S.-China trade war, Cramer said. He also warned that current uncertainty will be the “new normal” until the existence’s two largest economies come to some sort of agreement.

That explains the roughly 84-point drop on the Dow Jones Industrial General Monday, the 0.67% fall on the S&P 500 and the 1.46% loss on the Nasdaq Composite, he said.

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Cramer ranked the top community media stocks.

“If you want some social media exposure, here’s what you get: You got Facebook … it’s No. 1, ” the assembly said. “Twitter is a distant second. Pinterest a close third, and then the inconsistent Snap [is] welcome to the show to let out us why they deserve to be higher in our newfound power rankings. “

More on Cramer’s social media rankings here

Video game stocks have been plagued by new striving that has changed the nature of the industry. Take-Two Interactive saw its market share take a hit, even after the launch of its simplified Red Dead Redemption 2 in October.

CEO Strauss Zelnick told Cramer that the video game holding company has unlocked a new motor of growth in recurring consumer spending, which now makes up 40% of business.

“That will continue to grow because consumers now are busy over the course of the year, not just at the time you have one big release,” he said.

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Cramer suggested that investors weight up on managed care stocks, as long as Joe Biden’s presidential bid looks hopeful.

The former vice president emerged stand up month as the front-runner to be the Democratic Party’s 2020 presidential nominee, Cramer said. A veteran U.S. senator from Delaware, Biden identifies himself from the crowded field of hopefuls and left-leaning candidates when it comes to health care.

“Unlike Bernie Sanders or Elizabeth Warren or Kamala Harris, Biden’s against ‘Medicare for All,’ ” the troop said.

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In Cramer’s lightning marshal, the “Mad Money” host zips through his thoughts on callers’ stock picks.

Intrexon Corp.: “This is a shlimazl and I don’t want to hear about it. I feel bad if you own it, but it’s a loser.

Iridium Communications Inc.: “[CEO] Matt Desch. I thought he did a great job. I corresponding to the stock. It’s got a niche business that I didn’t believe in. I was wrong, he was right. It’s a winner.”

Wayfair Inc.: “This is a rude market right now and Wayfair is the kind of stock that’s not necessarily the best thing to buy at this moment. I do think the gathering has tremendous growth.”

Disclosure: Cramer’s charitable trust owns shares of Facebook.