Jim Cramer on Ares Capital: "I Want to Be Very Careful There"

Ares Capital Corporation (NASDAQ:ARCC) is one of the stocks Jim Cramer recently looked at. When a caller mentioned that their top five holdings are AAPL, ARCC, HSY, KMB, and NVDA, Cramer remarked:

Wow, okay. Well, you got some yield there. You got some growth. I don’t like the Ares because I can’t really tell what they own, so I want to be very careful there. So, I’m going to get you out of that. I’m going also put you in J&J. We have Hershey, obviously, we got a candy company. We’ve got a what is the ultimate soft goods company. I can’t know if it’s holding par. That’s genuine Wall Street gibberish for $100. Apple, went over that, that’s terrific. NVIDIA, I told Jeff Marks, said it wasn’t, oh, I did that at the last one. Okay, so, semiconductor, I’m going to call it consumer electronics… it’s a tech company. I don’t know, tissue, chocolate, food, and then you just got rid of this. You went into J&J, and then you’re fine. Please, I don’t trust this one. I don’t like the 9% yield. It makes me very, very nervous.

Ares Capital Corporation (NASDAQ:ARCC) provides financing solutions, including debt, equity, and mezzanine capital, to middle-market companies across several industries, including manufacturing, healthcare, and technology.

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Disclosure: None. This article is originally published at Insider Monkey.