After evaluating the divisions, Cramer said he set up a basket of comparable businesses to find the multiples that market players are paying for similar stocks. Further, he took the average multiple, plugged it in and came up with a conservative analysis that Tyco's breakup should account for a 10% upside in the stock.
VF Flyer
Few companies have been as reliable as VF Corp. (VFC Quote), Cramer said. But today the company's skeptics came out after it announced the sale of its underperforming Fruit of the Loom business, he said. Cramer welcomed Mackey McDonald, the company's chairman and CEO, to the show and asked him to comment on the deal. "Today's announcement is a big step forward," McDonald said. It is going to help the company improve its organic growth rate and VF's margins, he said. Further, McDonald said the sale should allow VF to focus on its higher-growth businesses and to improve shareholder returns. Cramer advised market players to back up the truck* and buy VF shares now.Lightning Round
Cramer was bullish on Schlumberger (SLB Quote), Transocean (RIG Quote), Companhia Vale do Rio Doce (RIO Quote), Allegheny Technologies (ATI Quote), Wachovia (WB Quote), Bank of Nova Scotia (BNS Quote), Ford (F Quote), Marvell Technology (MRVL Quote), Charles Schwab (SCHW Quote), Ameritrade (AMTD Quote),Sudden Death
In his "Sudden Death" round, Cramer was bullish on @Road (ARDI Quote), Transocean (RIG Quote), which he owns for his charitable trust, Action Alerts PLUS, and Darden Restaurants (DRI Quote). He was bearish on Complete Production Services (CPX Quote). *For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock. Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.- Loading Comments...
- Loading Comments...
Recent Comments
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,405.83 | 1,102.35 | 2,190.86 | 34.82 |
Oil *
71.98
|
|
UP
68.78
|
UP
6.41
|
UP
7.13
|
UP
0.59
|
10 Yr
3.48%
SPDR Gold
110.82
|
|
+0.67%
|
+0.58%
|
+0.33%
|
+1.72%
|
Data delayed 20 minutes |














