Ingersoll's Buyback Likely to Lift Shares

Nothing's better than having a buyback that's reliable and underneath the stock as it goes up; that way, if you change your mind and want to get out, you can.

Individuals never think like this though. A buyback doesn't matter if you want to sell 1,000 shares of Ingersoll Rand (IR - commentary - Cramer's Take). But for institutions, this is nirvana, because most people feel very trapped when they buy cyclicals. They were about the exit.

That's why I am surprised that Ingersoll Rand isn't up even more here, given the tremendous nature of the firm's buyback. I am also surprised that almost all of the analysts dislike it so much. Because I saw the up action yesterday, I mistakenly thought that was simply some analyst tipping his hand and telling people quietly that he couldn't stay negative on it anymore.

Nope. It was just a buyback front-run.

Now, here is what happens. The stock goes to $38-$39, which creates a different chart. Then the analysts will take a look at it. They don't like recommending down stocks. That's too hard.

When it gets there, the analysts will take it to $40-$41 -- maybe even $43, because the company will be there buying. They were buying at that level before, but now more aggressively. I own this stock for my Action Alerts PLUS charitable trust. It has been a real ugly duckling.

With this buyback it turns into a swan for certain.

At the time of publication, Cramer was long Ingersoll Rand.

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At the time of publication, Cramer was long Ingersoll Rand.

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