A cigarette or joint of some sort dipped in Phencyclidine more commonly known as PCP, which is then smoked. The name "sherm" was originally coined from, people dipping Nat Sherman cigarettes into liquid PCP. PCP comes as either a white powder or liquid form, the latter given the street name "embalming fluid." There is much confusion over the practice of dipping cigarettes in "embalming fluid" leading some to think that real embalming fluid may actually be used. Smoking actual formaldehyde will cause intoxication, and may cause serious health consequences beyond those of consuming PCP.
Why is that guy screaming jibberish with all of his clothes off?