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Jim Cramer's 'Stop Trading!': Buy GIS

TheStreet.com Staff

In the wake of a Berkshire Hathaway (BRK.A Quote - Cramer on BRK.A - Stock Picks) -financed buyout of Wrigley (WWY Quote - Cramer on WWY - Stock Picks), Cramer said General Mills trades at a "very substantial discount" at these levels.

"People should go back and realize that this company, at 18 times earnings, may be a steal," Cramer said of the cereal maker.

Cramer also pointed viewers to Heinz (HNZ Quote - Cramer on HNZ - Stock Picks), ConAgra (CAG Quote - Cramer on CAG - Stock Picks) and Kraft (KFT Quote - Cramer on KFT - Stock Picks). "I think all these companies should be re-evaluated upwards after this," he said.

"I think this group has been forgotten about," Cramer said. Investors who think the recession will last a while should think about these names, he said. He said Heinz is a well-run company, and although he's skeptical of Kraft as a takeover target, he said it has good brands. Kellogg (K Quote - Cramer on K - Stock Picks) and General Mills might be interesting together, he said.

Cramer praised Wrigley CEO William Perez and predicted he would stay on board after the merger.

Of a potential Mars IPO, Cramer said, "I've worked with that company from time to time ... they hate the glare." He was skeptical that the company would come public. "God love 'em. ... I don't blame em one bit," he said. The company is probably better off without "the endless lawsuits" and "SEC scrutiny" that comes with being public, he said.

Cramer said that investors should approach the idea of a merger between Cadbury Schweppes (CSG Quote - Cramer on CSG - Stock Picks) and Hershey (HSY Quote - Cramer on HSY - Stock Picks) with caution. He said that Hershey has "a lot of self-inflicted wounds," and "Cadbury itself has a lot of issues."

On the other hand, "I think Campbell's (CPB Quote - Cramer on CPB - Stock Picks) is in shape to do a big deal," Cramer said.

For a trade on the $600 tax rebate checks hitting consumers' accounts, Cramer recommended Polo Ralph Lauren (RL Quote - Cramer on RL - Stock Picks) and Phillips-Van Heusen (PVH Quote - Cramer on PVH - Stock Picks). He also said that "wealthier people are going to their Apple (AAPL Quote - Cramer on AAPL - Stock Picks) Store. It's my favorite thing to do when I'm not working."