Jim Cramer's Stop Trading! Akamai Angst
Stock quotes in this article:
SAFM
Buying Sanderson Farms (SAFM Quote) is the way to chow down on chicken consolidation, Jim Cramer said Monday on CNBC's Stop Trading! segment.
Cramer said Gold Kist's (GKIS Quote) "surprised and disappointed" reaction to a hostile bid by rival Pilgrim's Pride (PPC Quote) could pave the way for Sanderson to act as a white knight. If not, Cramer said, Sanderson is still a high-quality operator that has made big inroads in improving its supply and distribution arrangements. Cramer said he isn't worried about the prospect of bird flu, which he said is the fear that has been hammering shares in the chicken sector. As for Gold Kist, Cramer urged the company to take a buyout. "Hey clowns," he said of management, "you've been killing your shareholders long enough!" Cramer also said American Movil (AMX Quote) is worth watching based on rumors that governments in Latin America may restrict prices in the prepaid wireless sector. "Let the stock come down," Cramer said of American Movil, which dropped 37 cents to $37.65 late Monday. He said the stock could be a buy at $35 or if the rumor proves unfounded. Cramer urged investors to take a wary stance on recent tech favorites Akamai (AKAM Quote) and Network Appliance (NTAP Quote). Akamai ran up last week when a big round of hedge fund liquidation finally ended, Cramer said -- but the stock nevertheless failed to hit a new high, a worrisome sign from a technical perspective. Cramer also said to steer clear of Aetna (AET Quote), the health insurer that was rocked last month when it posted a weak quarter. He called the company "worst of breed" and said he'd be a "huge seller" right now.- Loading Comments...
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