Cramer's 'Mad Money' Recap: 10 Money-Making Mergers

02/21/07 - 07:50 PM EST

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.


Although people might be sick and tired of hearing about how Sirius Satellite Radio (SIRI Quote) and XM Satellite Radio (XMSR Quote) intend to merge, there is potential to make some mad money here, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Cramer smells "desperation" in the anticompetitive merger and believes there is a rush to merge that should spread to other sectors as well, because "corporations are racing against the political clock."

"It looks like the 'government of, for and by the corporation' in pursuit of profits could be on the way out," Cramer said. "The Street has the feeling a Democrat could win the White House in 2008."

If that happens, he continued, it could mean a change in the kinds of mergers that are allowed. However, luckily, "the current Justice Department doesn't know the meaning of anticompetitive," Cramer said.

Therefore, he believes there will be "one last monopolistic deal explosion before the party ends."

"I believe we are going to get a wave of these monopolistic mergers in the next two years," Cramer said.

The following are 10 possible anticompetitive mergers that Cramer believes could get through the Justice Department for a limited amount of time:

Merger Mania

10. Kroger (KR Quote) and Safeway (SWY Quote).

9. Laboratory Corp. (LH Quote) and Quest Diagnostics (DGX Quote), which Cramer owns for his charitable trust, Action Alerts PLUS.

These two diagnostic companies have been "locked in a ferocious price war to win the HMO business," he said. As this is keeping down profits, Cramer believes "it is time for them to get on the anticompetitive bus."

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