Wal-Mart (WMT): "The last quarter wasn't that good. I want to wait to re-test $71 before pulling the trigger."
In the "Executive Decision" segment, Cramer sat down with Nick Schorsch, chairman of American Realty Capital Trust (ARCT), a stock that's seen a 14% gain since Cramer last spoke with Schorsch on July 12, but also one that's come under fire after the company announced it was selling itself to Realty Income (O).
Schorsch said the merger was a perfect example of one plus one equaling three, as Realty Income is a great company with a terrific balance sheet. He said the combined company will be able to boost dividends by 7% and Realty Income has a track record of raising their dividend 67 times in a row.
Additionally, Schorsch said American Realty shareholders get to tap into Realty Income's higher multiple, making the deal accretive for everyone. The combined company will be more stable, he said, as well as having a much better cost of capital for the future.Cramer said that normally he advises shareholders to sell on a takeover, but in this case he's advising investors to stick with the company and get shares in the new entity.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer sounded off against Alcoa (AA) and Bank of America (BAC), the two biggest laggards over the past two years. Cramer said while he could argue that both companies are better now than they were two years ago, it simply doesn't matter. Alcoa, he said, is suffering from an aluminum glut that has no end in sight while Bank of America is competing against Wells Fargo (WFC) and losing at every turn. With no catalysts in sight for either company, Cramer said he prefers Wells Fargo and Vale (VALE), both of which are Action Alerts PLUS holdings.
And in Closing...In his closing comments, Cramer said earnings at Palo Alto Networks (PANW) were disappointing, but he liked the quarter at dollar store chain Five Below (FIVE). --Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV