CN Crimm’s Jim Cramer came after the struggling giant Grab of Southeast Asia on Monday, although he advises investors to wait for lower price levels as Wall Street’s appetite for SPAC deals declines.
Grab, an app that offers transportation, food delivery, hotel reservations and other services, will merge with Altimeter Growth for $ 39.6 billion in the world’s largest empty check transaction to date.
“I do not like the price at the moment, but if you are waiting for some weakness, and it probably will be, you have my permission to buy,” the ‘Mad Money’ host said.
Cramer said the stock would be more attractive below $ 11.50, about 20% lower.
“The Grab thing … it’s a great venture, but it’s also completely out of fashion with the Wall Street fashion show,” he added. “It’s a fast-growing digital play at a time when money managers want stocks for smokers.”
Smoking step refers to companies in more cyclical sectors of the market, such as energy and industry.
Grab will list on the Nasdaq with the ticker GRAB when the deal closes with Altimeter, a specialty procurement company. The stock, currently under the symbol AGC, last traded at $ 14.01 on Monday, 4.4% higher than on Friday.
High-end growth is driven by venture capitalist Brad Gerstner, who has also come behind Snowflake and Roblox. Cramer stressed that the company has agreed to a three-year close on its shares.
Grab reported $ 1.6 billion in adjusted net income in 2020, reporting its performance above the pandemic. The company projects an annual growth of 42% by 2023, according to a submission.
Grab ranks number 16 on last year’s CNBC Disruptor 50 list in 2020.