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Cramer: Enough is enough! Disney & Twilio are portfolio torture

Abigail Stevenson

Jim Cramer sees both senior and junior growth stocks as losers right now.

"These stocks are too visible to break down without causing the entire tape to look heavy. It is as if they have a grave responsibility to the entire market, and they are doing nothing but letting us down," the " Mad Money " host said.

Disney (NYSE: DIS), Acacia (NASDAQ: ACIA) and Twilio (NYSE: TWLO) have all been excruciating for Cramer to watch.

Cramer noted that on a bad day, Disney's stock always looks like it is on a verge of a big break. The same goes for Nike (NYSE: NKE) and Starbucks (NASDAQ: SBUX), he said. Occasionally these stocks will dazzle, but will resume their decline a session or two later.

"It is torture. It seems like none of these rallies ever get you back to even. Tantalize and then crush," Cramer said.





Acacia and Twilio are two junior names that came public earlier in the year. They both pre-announced better-than-expected quarters, but then followed up with the announcement of a secondary offering. The good news was thwarted by an invitation for short-sellers.

Acacia priced its secondary down $10 at the same time as the pre-announcement last week. The stock quickly bounced but then fell apart.

Likewise, Twilio announced a secondary offering after a huge run on better earnings. It pre-announced the numbers before the secondary, but the stock still plummeted because of short-sellers.

"These secondaries, rather than creating opportunities for short covering, which is what happens in a healthy market, now look like opportunities for the shorts to double down on their positions," Cramer said.

Cramer compared growth stocks to a sinkhole. The ground looks solid on the bottom, but there is nothing underneath.

"For me, as a lover of growth, this is where the rubber hits the road," Cramer said.


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