This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Place Bets Now on Bidding War

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

How to Win a Bidding War
(Without Even Trying)

Parker-Hannifin (PH - Get Report) and Eaton (ETN - Get Report) are in a bidding war for British-owned filtration company Domnick Hunter, but the real winner will be either Donaldson (DCI - Get Report) or Flanders (FLDR), said Jim Cramer Wednesday on his "Mad Money" TV show.

Whichever company -- Parker-Hannifin or Eaton -- loses the battle for Domnick Hunter is likely to look elsewhere for an acquisition, said Cramer. He believes either Donaldson or Flanders will be the target.

Donaldson has been a "solid" performer and would make a good investment regardless of whether it receives a takeover bid, said Cramer. Flanders, on the other hand, although it hasn't performed as well as Donaldson, is perhaps better positioned.

Thus, Cramer would "buy a little of both."

China Demand Commands Attention

Cramer changed his tune on a stock he panned Tuesday, China Medical Technologies (CMED). Cramer usually avoids recommending Chinese companies because of the relatively lax investor protections there and the country's history of being "less friendly to capitalists."

However, China Medical Technologies makes ultrasound machines that break up tumors, which is a "good line of work," said Cramer. Additionally, General Electric (GE - Get Report) owns 15% of the company, and that gives him reassurance. "This stock gets the seal of approval from good old fashioned American capitalism, not just the PRC."

China is investing heavily in its health-care infrastructure, and "some of that money is bound to come China Med's way," he said. The company, which recently became public, is profitable and "cheap," said Cramer, who expects "imminent" research coverage.

"I was wrong. I want you to buy China Medical Technologies ... before it goes even higher," he said.

Meanwhile, due to seemingly insatiable demand from China, it's time to back up the truck on the commodities, said Cramer. One play he likes is Rio Tinto (RTP), one of the world's largest mineral companies. Over half of Rio Tinto's business comes from copper, iron, coal and molybdenum, all of which are in heavy demand from China.

Although the stock closed the regular trading session Wednesday at $156.85, it's not expensive on a P/E basis, said Cramer. "I think it's a great buy."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MRH $0.00 0.00%
ASH $112.09 0.00%
AMAT $18.45 0.00%
BTU $11.28 0.00%
CPN $14.84 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs