MEDIA LOSER:
Jim Cramer CNBC's Jim Cramer made a pretty terrible prediction about the now-insolvent Silicon Valley Bank just one month before its spectacular collapse this week.
Lauding the bank during the Feb. 8 episode of Mad Money, Cramer told viewers that the bank’s stock price was “cheap” and ripe for a rebound this year after getting hammered in 2022.
“The ninth best performer year-to-date is SVB Financial,” Cramer said of the bank. “This company’s a merchant bank with a deposit base that Wall Street had been mistakenly concerned about.”
Welp, SVB, indicated last week it was experiencing cashflow problems, prompting the bank to try to raise money. That effort fell short and the bank went belly-up in what is the second-largest bank failure in U.S. history. On Friday, despite Cramer's rosy forecast, California officials shut down the institution and placed it under the control of the Federal Deposit Insurance Corporation.
Discussing SVB on Feb. 8, Cramer said one of the appealing aspects of the company is that the bank has “become less depending upon private equity and venture capital offerings.”
Cramer predicted the bank’s stock would run higher, despite it being the fourth-worst performer in 2022, concluding, “I think it’s also a good example of why these bounce-back moves might be far from over.”
Advising your viewers to buy stock in a now-doomed company is a pretty awful look for an expert in the field. Let's just hope they didn't listen. | 