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: Shameful Hesitancy

Editor's Note: This article was originally published at 6:06 a.m. ET on Real Money on May 15. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) --There should have been mergers and acquisitions. That's right, during this whole run-up, there should have been many more deals, more acquisitions to spur growth, or to take market share. We can sit here and wonder why the heck there's been such a dearth of M&A since February. Or we can reach a very logical, inescapable conclusion: Most CEOs were too stupid and pessimistic to take the opportunity to do any buying.

Well, here's some real bad news. The time for transformative deals, unless we get a broad-market pullback, has probably passed. Harsh judgment?

I don't think so.

We spend a heck of a lot of time, much more than we should, about why stocks shouldn't be higher. Think about all of the admonitions we've heard: There's no real revenue growth, so don't pay up. Fed chief Ben Bernanke is about to change his mind; don't pay up. Tax rates are going higher; don't pay up. Sequester's coming; don't pay up. Fiscal cliff's here; don't pay up. Europe's burning; don't pay up. China's faltering; don't pay up. Valuations are stretched; don't pay up. Commodity prices are falling; don't pay up.

I mean, the fact that I have sat here and listened to these different objections at every single milestone is a pathetic reminder of how wrong people can be. It's an incredible thing, isn't it, that a good manager like David Tepper can come on CNBC's "Squawk Box" and just be unequivocally bullish and make news for doing so?

But most chief executives don't see it that way and didn't see it that way. Instead of looking for bargains when prices were lower, they sat on their hands and bought back their own stock instead of the stocks of others when they had the chance.

Most -- but not all. Think of the ones who did. Think of the people who did step up to the plate in this period. First, there's the totally and correctly beloved Warren Buffett, who bought Heinz (HNZ) three months ago at the same price he would have to pay for it today, except he got the whole company. That's right: In retrospect, he stole Heinz, given how high Campbell Soup (CPB), General Mills (GIS), Hershey (HSY) and the like have traded.

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 17,699.58 -191.58 -1.07%
S&P 500 2,057.44 -23.99 -1.15%
NASDAQ 4,757.3970 -60.1970 -1.25%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs