NEW YORK (
TheStreet) -- "
(PAY) reported an amazing number last night," according to
TheStreet's Jim Cramer, co-manager of the
Action Alerts PLUS portfolio. That's why he would love for VeriFone to merge with another online payment processing company.
According to Cramer, if eBay (EBAY) were to spin off its PayPal division -- something that activist hedge fund manager Carl Icahn really wants -- PayPal could acquire VeriFone. Now that VeriFone has "its act together," it becomes a viable takeover candidate, he said.
A spun-off PayPal that acquires VeriFone would not lose its business relationship with eBay. But with the acquisition, it would be able to enter bricks-and-mortar retail in a meaningful fashion.
Starbucks (SBUX), which is also making strides in the mobile payment processing world, could be a prospective buyer of VeriFone, too, he said.His conclusion? "Buy VeriFone," he said.
- - Written by Bret Kenwell in Petoskey, Mich.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts