Cramer's 'Mad Money' Recap: Looking for Real Leaders
Cramer said he's not believing the skeptics in this stock and feels OpenTable has a bright future.
Breaking up is not only easy to do, it's profitable, too, and Cramer has the numbers to prove it. He recapped some of the most notable corporate breakup stories he's recommended over the past few years.Cramer said when the old American Standard split itself up in February 2007, it unlocked $4.4 billion for shareholders, a 36% gain. The old Tyco (TYC) split itself into three companies shortly thereafter and took its enterprise value from $68 billion to $86 billion in just 18 months. Cramer also mentioned Altria (MO), which spun off Kraft (KFT) in 2007, which in turn split itself into two. Combined, the enterprise value more than doubled, he noted, and that's not including dividends. More recently, Cramer recommended Marathon Oil (MRO) and ConocoPhillips (COP), which saw its shares pop 30% and 29%, respectively. There were also gains in several others, including Covidian (COV), Abbott Laboratories (ABT) and News Corp (NWSA). In all of these cases, the stock rose on the news of the breakup and kept rising after the breakup occurred. This is not speculation, Cramer concluded, it's a tried and true strategy for success.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer said Yelp (YELP) and Groupon (GRPN) are hot once again, but he remains a skeptic. Cramer said that while the metrics seem to be moving in the right direction for both of these companies, neither still has any earnings. Both companies are benefiting from a strengthening consumer as well as growth in mobile devices. But with Groupon's international business still lagging and Yelp's valuation now sky-high, Cramer said there's little reason to own either stock. "Nothing is assured in tech," Cramer concluded, so investors need to be careful. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- 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
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