CNBC’s Jim Cramer on Thursday explained why Alto Ingredients is a risky buy while Gladstone Land is a complete failure.
“You have my blessing to attack Alto Ingredients for speculation but Gladstone Land is coming in way too hot,” the Mad Money host said.
Alto Ingredients shares fell 0.15% to $6.82 on Thursday, hitting a 52-week high of $7.27 earlier in the day. The company, which makes specialty alcohols and other plant-derived ingredients, recently rallied by focusing on ethanol, Cramer said, adding that ethanol is more competitive these days due to high oil prices.
“While I’m wary of anything that’s up more than 40% for the year, Alto is … a $500 million company with little analyst coverage,” Cramer said. “This could be excellent speculative material in the right environment,” he added.
However, he cautioned that that doesn’t mean he’s recommending investors start buying the stock seriously.
“In the end, it’s pure speculation. If you think oil prices can stay high then I think Alto Ingredients might be worth betting on, but I recommend buying it in incremental small increments and only with money you can afford to lose ‘ he called.
Referring to Gladstone, a farmland real estate company, Cramer said the stock price is too high to be a buy right now. Shares of the company fell 2.72% to $36.42 on Thursday.
“Long term I believe it is an excellent deal and I would be a buyer at the right price. But I don’t think that price is the right price,” Cramer said.
“I can’t bear to buy Gladstone up here. Sometimes you just have to admit you missed it,” he added.
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