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

Jim Cramer vs. Doug Kass

Editor's Note: This article was originally published on Real Money on Feb. 19. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- We've got a real battle going here: Doug Kass doesn't see this plethora of deals to be nearly as important to the market as I do. Rather than characterizing his words, I will link to it here.

But I have to tell you that I feel deeply committed to my views and want to go point-to-point and toe-to-toe.

First, the OfficeMax (OMX)/ Office Depot (ODP - Get Report) merger is an important tell. Some claim that these are nothing but two drunken sailors propping each other up. I say it is a recognition by these two companies that if you can't beat each other, join each other. Both stocks got ridiculously cheap. Together they will be a strong entity. There's no longer a level of confidence on the part of OfficeMax that Office Depot won't go away (as opposed to Circuit City or Linens & Things) so, why not create a powerhouse?

Either way, the animal spirits that come with this -- or with Staples (SPLS - Get Report) pondering a private equity deal or with Best Buy (BBY) getting a bunch of equities -- are extremely bullish. Companies feel that things are going to get better or they wouldn't ponder private equity deals or the possible bankruptcy of competitors. And Best Buy did have a good quarter. It is entirely possible that the next one is even better or you wouldn't be getting multiple upgrades.

My inclusion of Dell's (DELL) potential buyout as positive and the analogy I draw to John Malone's purchase of Virgin Media is that you have beliefs by smart people that the worst is behind them. Virgin Media's business is challenged by Europe's woes. Malone must believe they are near the end. Michael Dell believes that his businesses -- and they are businesses, not just PCs -- aren't getting enough credit. Dell also knows that the customer base has been hurting but that it is not in secular decline. In fact, lots of these customers are government sponsored and Dell must know that the governments can only hold back spending for so long.

Comcast (CMCSA - Get Report) shows that it wants to get 100% of the burgeoning cash flow of a media-supported business. If things weren't getting better, why would it bother.

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


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%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs