Jim Cramer, CNBC analyst and host of Mad Money, recommended that his viewers buy shares of Silicon Valley Bank’s parent company last month, before the bank collapsed on Friday.
“The ninth-best performer to date has been SVB Financial. Don’t yawn,” Cramer told viewers during a February 8 episode of Mad Money about Silicon Valley Bank’s parent company.
Cramer, touting that the bank was “less dependent upon private equity and venture capital offerings,” listed it in ninth place among his “biggest winners of 2023 … so far,” along with other stocks such as Meta, Tesla, Warner Bros., Norwegian Cruise Line, and NVIDIA.
“This company is a merchant bank with a deposit base that Wall Street has mistakenly been concerned by,” Cramer said on-air.
The CNBC host noted that the stock was the “fourth-worst performer of 2022,” but it was worth buying because “the stock is so cheap” and “being a banker to these immense pools of capital has always been a very good business.”
“The ten biggest winners of the year so far… consider me intrigued, but only if we have a couple more down days like today that give you a better buying opportunity,” he added. “These stocks have all been overbought — one that I’m sure the bears are going to create when they go on TV tomorrow and tell you it’s the end of the world.”
When Cramer made the remarks on-air, SVB Financial was trading at $320.40 a share.
Roughly one month after Carmer’s remarks, trading in shares of the parent company was halted for pending news on Friday after premarket price indicators plunged by 63 percent. Shortly after the halt, regulators shut Silicon Valley Bank down, and the Federal Deposit Insurance Corporation said they would protect insured deposits.
Jacob Bliss is a reporter for Breitbart News. Write to him at email@example.com or follow him on Twitter @JacobMBliss.
Read the full article here
Discussion about this post