why Jim Kramer warns investors to stay away from ScottsMiracle-Gro

Jim Kramer on Thursday urged investors to resist the urge to add ScottsMiracle-Gro to their portfolios despite the stock's low valuation.

"Historically, this is a great time for gardening because it's planting time, and Scotts is a name we get a lot of questions about. "But in the last thirteen months, those supplies have run out," said the Mad Money host.

"While ScottsMiracle-Gro may seem cheap on a cost-benefit basis, the problem is that revenue guidance continues to decline ... and management has no idea how bad it will get," he added later.

On Wednesday, JPMorgan upgraded its Scotts Miracle-Gro to neutral from overweight, citing the stock's valuation, high margins, and market leadership. Conversely, Stifel downgraded its equity rating from "overweight" to "fixed."

Kramer said he agrees with Stifel's bearish stance at Scott's, mainly because the company struggles with rising raw material costs, uncertainty over its $8 per share earnings target, and concerns about Hawthorne's performance at Scott's. Hawthorne worked in cannabis, an industry that Kramer says has been crushed over the past year.

"Furthermore, Scotts had such a poor balance that they didn't see management accepting aggressive buying. In short, business was bad, and there wasn't much Scotts could do to fix it," Kramer said.