This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Shameful Hesitancy

Stocks in this article: HNZCPBGISHSYVMEDETNICEKMP

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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 16,762.93 +85.03 0.51%
S&P 500 1,957.08 +6.26 0.32%
NASDAQ 4,467.2030 +14.4110 0.32%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs