Nucor Secondary a Steal

The chances to buy keep appearing and no one believes in them until after they happen. Last week, we had the ultimate giveaway. We had Nucor (NUE - commentary - Cramer's Take) trading well below where it did a secondary, a secondary it needed to be able to complete an acquisition without wrecking its balance sheet.

The buyers scurried like cockroaches with the lights on. Nobody wanted Nucor below the print price. It was considered to be "the end" of the steel cycle.

Kaboom! Today it preannounces a higher-than-expected earnings report, and people are buying it up huge from the $74 secondary and the $72 it fell to.

You must always buy secondaries of well-run companies where the fundamentals are great and they break the print price. I could not have been more emphatic about this one if I jumped up and down and took my pants off!

Now the easy money has been made. I think it will continue to rally, as will U.S. Steel (X - commentary - Cramer's Take) and Reliance (RS - commentary - Cramer's Take) but the opportunity for an unbelievable investment -- not just a trade -- was there for the taking and so few took it.

Random musings: Although there are no secondaries, I would urge you to look at other "new tech" names that are down on a group downgrade by UBS of the big machinery stocks. They are all pretty cheap and the estimates aren't going down in the downgrade. Classic example of what I was talking about in an earlier piece about valuations and how they support stocks. ... The ag group is still acting "oilish," meaning that Monsanto (MON - commentary - Cramer's Take) says it has new yields coming for seeds and people act like it is a new oil find ... I get a number of inquiries about Lenny "Nails" Dykstra's great work, and I say he picks his spots. They won't always be like that home run that took the Mets all the way in '86, but often they are just in the sweet spot. Right now I am reading his Nokia (NOK - commentary - Cramer's Take) call and I think it might be one of those that could work. So contrary, as contrary as Doug Kass!! ... Level 3 Communications (LVLT - commentary - Cramer's Take) on the move. Remember, Obama wants massive rollout of broadband nationwide for all people as an equalizer. LVLT has the extra bandwidth that would make it the ideal Obama play. That's why I think it is working its way higher.

At the time of publication, Cramer had no positions in stocks mentioned.

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