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: Don't Fight the Fed

Cramer said that Yahoo!'s core business is worth at least $7.17 a share, taking the total value up to $22 a share. He said with Mayer at the helm, it's easy to think the stock will begin to move once the company reports on Oct. 22 and outlines more of its plans.

Companies cannot execute a turnaround plan, or any plan, without a solid CEO, Cramer concluded, and Yahoo! finally has one.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Frontier Communications (FTR): "No. I don't want you to touch this one. They're in a bad part of telco."

Western Digital (WDC): "Very inexpensive but I don't want to own any drive stocks."

Cabot Oil & Gas (COG): "People feel that natural gas has bottomed. I'd hold onto it."

Deckers Outdoor (DECK): "This is a one-way ticket away from paradise. We need to hear from management before we can believe in Deckers again."

Celgene (CELG): "I like it. I think they're doing a terrific job. I want to buy some right here."

Devon Energy (DVN): "This is a distinct disappointment and I'm not going there."

Sears Holdings (SHLD): "Until you tell me that you want to shop at Sears, I'm not buying it. I won't shop there and I don't want to own the stock."

ArcelorMittal (MT): "Just sell it. I don't want any steel stocks right now."

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Hamid Moghadam, chairman and co-CEO of Prologis (PLD - Get Report), a global logistics REIT that specializes in warehouse and distribution buildings. Prologis sports a 3.25% dividend yield and has seen its shares rise 21% so far this year.

Moghadam said that Prologis now operates in 21 countries and, overall, the world outside of Europe is faring pretty well. He said that even some areas of Europe are recovering, with only southern Europe having "a long way to go." Moghadam noted that after a four-year span with virtually no new construction, markets are finally in balance.

That's why Prologis plans on $1.5 billion in new development this year, a number that Moghadam said represents "quite a few new buildings." His company is the most dominant player in the industrial building space with its next largest competitor being five times smaller.

When asked about his company's valuation, Moghadam said that his goal is to achieve 30% leverage, down from the current 42% level. He said that net asset value for Prologis is about $35 to $38 a share, but given the company's size it should have a premium valuation. Moghadam also noted that industrial rents are 25% below their 200 peaks, leaving lots of room for growth.

Cramer agreed, saying that Prologis is a real grower with a great dividend yield.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said he'd be a buyer of B&G Foods' (BGS) coming secondary 3.65 million-share offering of stock.

Cramer said he remains a fan of B&G, the company that buys and revitalizes neglected food brands including Cream of Wheat and Ortega Mexican foods, among dozens of others.

He said B&G's winning strategy of using its credit lines to make the acquisitions, then following with the equity offerings to reduce debt, has made shareholders money time and time again. Shares are up from a low of $2 to over $31 a share now.

--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.
3 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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BG $62.50 0.00%
PLD $45.41 0.00%
YHOO $36.60 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs