Jim Cramer rips SPACs, urges investors to avoid the blank-check companies right now

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The 'Mad Money' host said everybody besides institutional money managers get 'the short end of the stick' in SPAC deals.

on Thursday implored viewers to steer clear of special purpose acquisition companies right now, suggesting there's too much risk for retail investors because of the structure of the transactions.

The pace of SPAC deals accelerated this fall, following a months-long slowdown beginning in March after the Securities and Exchange Commission"We're now seeing roughly 20 SPAC fundraises per week. That's insane. Again, that's because while buying a SPAC stock after a deal gets announced is a terrible bet, getting in on a SPAC IPO actually makes sense financially," Cramer said.

Additionally, Cramer said money managers who participate in the initial SPAC IPO typically get lucrative equity warrants alongside the actual shares of stock.

 

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It doesnt matter what point in the cycle it is, you have to differentiate investing vs. speculating. The s don’t lie, they vastly underprtform the averages over time fir numerous reasons. They are great vehicles to trade themes when there is froth but that’s about it.

Always do the opposite of what jimcramer says and you will be rich !!

Do the opposite of what failure Jim Cramer says 😂😂

🤡 Cramer

Dude is a grade A 🤡

Not all SPACs are created equal. $IONQ

There's a feel of something changing in spite of the santa claus effect

There needs to be a stricter oversight on SPACs.

Who cares what Cramer said

Pure trash SPACs and CNBC talked about every Freakn day and pushed it down our throats, now after we home gamers have lost so much money, mr Cramer comes out and says it’s not a good investment to late, Chamath made hundreds of millions off our backs and Branson went to space

This guy? 😂🤷🏻‍♂️🤦🏻‍♂️

$GGPI is a buy, it doesn't matter if its a SPAC.

My portfolio returns would disagree with you, Jim.

Warning now when these things are dow 90%, where was he a year ago when they were going up like crazy

I'm pounding the desk on $baba. Buy as much $didi as you can jimcramer

$GGPI

Buy signal …

SPACpicks We're gonna be rich.

So that means we should be buying them. When’s the Short Cramer ETF coming?

I know what I'm buying tmrw

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