Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- Supply is the true enemy of the bull, Jim Cramer told his Mad Money viewers Wednesday. With a deluge of new supply hitting the markets just as demand is waning, we could be in for a rough ride.
Up until now, the markets have been pretty devoid of new share issues, but that trend could be changing, and that has Cramer worried. The markets will either be flooded with shares that no one wants or money managers will be forced to sell what they have to make room for the new merchandise.
Cramer is not a fan of today's GoDaddy
(GDDY) IPO, especially given how this company has never been profitable in its 18 years of existence. He advised selling promptly.
Likewise with the coming initial public offering
, the craft-based online marketplace. With the company's own management stating that it may never achieve profitability, the deal is rather suspect.
Then there are the secondary offerings of shares. Abbott Labs
issued 35 million shares that were not able to hold their price, and no fewer than seven biotech deals also broke down.
All of this adds up to a troublesome market, Cramer concluded. Investors need to be careful.
Executive Decision: Richard Thompson
For his "Executive Decision" segment, Cramer sat down with Richard Thompson, CEO of FreshPet
, the healthy and organic pet food maker that made a splash
during its IPO last November but has since stalled -- until today when the company reported with in-line earnings and a 38% rise in revenue.
Thompson said the pet food market is $20 billion a year and he thinks FreshPet is poised to take its share because his company's brightly lit refrigerators are full of healthy pet food that gets the attention of pet owners and sometimes lifts sales of a store's entire pet food aisle.
FreshPet is not without its doubters, Thompson admitted, but everything that's new and disruptive has its doubters. FreshPet has a great team of successful executives that committed to the FreshPet mission.
So just how good is FreshPet's food? Good enough for Thompson to sample it himself on camera. He noted that all the ingredients are sourced locally in Bethlehem, Pa., and FreshPet is already expanding its $30 million plant with another $25 million investment. The same cannot be said for pet foods from China, which Thompson called "undependable."
Must Read: These 10 S&P 500 Stocks Were the Best Performers in the First Quarter