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Cramer's 'Mad Money' Recap: How Low Can the Market Go?

But Morgan cautioned that Krispy Kreme won't be delivering 11% growth every quarter, although he expects 4% to 6% growth is attainable. He said the company is trying new ways to bring customers in at different times of day and its specialty coffees are performing very well. International sales are another strong point for Krispy Kreme, said Morgan.

Finally, when asked how the company sees itself in a world that is becoming increasingly health-oriented, Morgan said he views Krispy Kreme as a treat, an indulgence that can be enjoyed in moderation. There's more to life than just physical health, he said, and donuts clearly increase one's emotional health.

Cramer said he continues to be a believer in Krispy Kreme's turnaround and growth efforts.

A Perfect Target

The market is still in love with takeovers, Cramer told viewers, which is why a company such as Post Holdings (POST) is the perfect target now that the markets have pulled back hard.

Cramer explained that Post, keeper of iconic cereal brands including Honey Combs, Raisin Bran, Shredded Wheat and, his personal fave, Fruity Pebbles, was sold to Ralcorp (RAH) by the old Kraft Foods in 2008, only to be spun off again as an independent company in 2012.

Since then, Post has been holding its own but not performing overly well as the company is, frankly, too small to stay independent, said Cramer. Given the current wave of food mergers and consolidation, Cramer said Post is a natural prime target for the likes of Berkshire Hathaway (BRK.B), which just bought Heinz, or Pinnacle Foods (PF), a stock Cramer owns for his charitable trust, Action Alerts PLUS .

Cramer said that as unlikely as it seems, the new Kraft Foods (KRFT), which is now a domestic food player after its own breakup, is also a potential suitor for Post.

As for valuation, Cramer said using the Heinz valuation, Post is worth $3.1 billion, or $63 a share. But using a more conservative number, $53 a share, or a 25% increase in value, is very likely.

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