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: Takeover Tonic (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on

NEW YORK ( TheStreet) -- "A little speculation goes a long way," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday, as he commented on the rumors that U.S. Steel (X) may be the target of a takeover bid at close to $60 a share.

Cramer said while he doesn't recommend stocks based on takeover speculation and prefers to use good old fashioned fundamental analysis, today's takeover rumors were welcome news on a sharply negative Wall Street.

Cramer explained that takeovers require confidence and changes market sentiment. He said with takeovers happening, ETFs don't look as attractive as individual stocks, as they can't offer the upside surprises. He said takeovers also create fear in the short sellers who can't afford to have their cheap stocks taken sharply higher.

With merger activity for 2010 already surpassing that of 2009, Cramer said it's clear that things are looking up, and merger mania may be returning to Wall Street. He said in addition to the recent Potash (POT) deal, there have been countless smaller deals, all of which have ben done largely in cash, and at hefty premiums.

Take a peek at the 52-week high, and Cramer said you'll find not only great companies like Dominion Resources (D) and Progress Energy (PGN), along with other Cramer favs McDonald's (MCD) and Altria (MO), two stocks which he owns for his charitable trust, Action Alerts PLUS , but also plenty of smaller companies that look just like those already receiving takeover bids. These are the companies that just got a whole lot more interesting, said Cramer.

He also there are also plenty of other companies that look just like ones already receiving takeover bids.

"The sellers will be proven wrong," said Cramer, "the markets are finally starting to see the light."

1 of 3

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
KMP $102.03 1.98%
AAPL $124.75 0.00%
ARMH $50.69 0.00%
APC $93.68 0.00%
CREE $35.16 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs