Jim Cramer's Stop Trading! Foreign Cash Is King
The money is in foreign firms buying U.S. companies, Jim Cramer said on CNBC's Stop Trading! segment Monday.
Arab and Chinese firms buying up American companies is not a bad thing, Cramer said. "We have to stop being so parochial. If the Chinese want in, fine." Cramer pointed out the jobs provided by such foreign firms as Toyota (TM) and Honda (HMC): "Better to do it here than there," he said.
Philips Electronics' (PHG) $2.7 billion purchase of Genlyte (GLYT) is one foreign buyout that has benefited shareholders. "Cash is king," Cramer said. Other than Celgene (CELG), few American firms have paid the kind of money seen today, when Philips, based in the Netherlands, exploited a strong euro to offer a 52% premium over Genlyte's Friday closing price.
Cramer also pointed out that LSI Industries (LYTS) is another candidate for a buyout after reporting a "great quarter."Rockwell Automation (ROK), a "behind-the-scenes real estate" company that looks "boring" on the surface has been producing "un-boring" results, Cramer said. He also said viewers should look for purchases by BASF and Nestle. "There's a lot of little companies" that are ready to be bought, He said. Olin (OLN), for example, "would be a natural fit for BASF." Cramer urged viewers to stay away from Garmin (GRMN) in this tough market. "Garmin is becoming more of a commodity," Cramer believes. "I'd sell the stock ... too many people nipping."
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