Jim Cramer says to avoid stocks in the ‘house of pain’ Nasdaq 100 index
CNBC’s Jim Cramer on Wednesday warned investors to avoid the stocks in the Nasdaq 100 and highlighted the worst-performing stocks during the third quarter.
“These seven biggest losers from the third quarter are simply representative of the House of Pain the index has become. By the way, if you’re living in a house of pain, you should move,” he said.
Cramer acknowledged that there are a few stocks in the index that he believes are still great, but maintained that the index is ultimately filled with “woe and hurt.”
Here are his quick takes on the index’s biggest losers:
Cramer said that the current environment is “brutal” for the company, and he doesn’t believe that’ll change anytime soon.
2. Charter Communications
He said on Tuesday that while the company is profitable, its lack of growth means that its stock is going nowhere.
Cramer said that the company’s earnings momentum is too low and the company’s market capitalization is too high. “You don’t pay $22 billion for a one-trick pony,” he said.
“Those guys suffer from an inability to forecast, a problem that seems to afflict the whole dating industry,” he said.
The company is likely struggling with the slowing personal computer market, he said.
Cable companies are struggling because the market wants no part in it, Cramer said.
Cramer said that while he believes Adobe’s a “fantastic” company, the bears have no patience for software firms with slowing growth rates.
Disclosure: CNBC is owned by Comcast’s NBCUniversal.