Watch for a Takeover Bid for Bear

What's been missing here? What else happened in 1990 besides investments from overseas and a Fed that cut rates?

Takeovers.

I think they are about to occur. I keep thinking about the changes at Bear Stearns (BSC - commentary - Cramer's Take), where a great brand name with great investment banking has fallen 90 points from its high. Bear has good stock trading, good prime brokerage and a good fixed income, ex mortgages.

Cramer: Bear Stearns Ripe for Takeover

While Alan Schwartz is a good man who can do a decent job at Bear, I have to tell you that I think that this company is too valuable to others to be independent. Just too valuable.

In short, I think it will be taken over. I have to believe that UBS (UBS - commentary - Cramer's Take), which needs to shore up investment banking; Deutsche Bank (DB - commentary - Cramer's Take), which wants to own prime brokerage; or Credit Suisse (CS - commentary - Cramer's Take), which needs better stock trading; could all be expected to bid for this company.

I also think the fact that Jimmy Cayne, the chairman, needs to reward shareholders who have stuck with him, and get something big out of this company.

Bear has scrubbed the books; I don't believe there are any hidden skeletons. It makes for a nifty $15 billion acquisition -- it is currently at $12 billion, half of what it was!

Most important, this stock acts too well for me to think that it's not going away.

Yes, I am predicting it: Bear will be bought, and it will be bought at a hefty premium as part of the needed consolidation during this period.

I would buy it. And I would buy calls on it out a month.

I think you will make great money.

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

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