This Day On The Street
Continue to site
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

Jim Cramer's 'Mad Money' Recap: Lost in the Rotation

Schiller continued there are tons of synergies that will be realized from the merger of two Gulf drillers. He said boats and helicopters that are running at 60% capacity can now run at 80% or more, saving money. Insurance costs can be combined, saving money. Add that to the boost in reserves and the deal is clearly a big winner.

Cramer agreed, saying at this new lower price shares of Energy XXI, with EPL included, are a steal.

When Breaking Up Doesn't Work

Cramer has long been a fan of corporate breakups as a way of unlocking shareholder value. Sometimes, however, not breaking up may be the best course of action. That's the case with Dow Chemical (DOW - Get Report) despite activist investor Dan Loeb suggesting otherwise.

Cramer said while it's true Dow makes both commodity and specialty chemicals, the stock's performance, up 10% so far this year and 50% over the past 12 months, proves Dow's vertically integrated model is working just fine.

Must Read: Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

Unlike other chemical breakups, Dow makes commodity chemicals that it then uses as feedstock for its specialty operations. Dow has already announced plans to spin off a few ancillary businesses, making its remaining business all the more focused.

After delivering a 22-cents-a-share earnings beat on a 3.4% rise in revenue, Cramer said there's little more investors could ask for. Dow has already announced an increase to its buyback program as well as a boost of its dividend to 3%.

Trading at just 14 times earnings, Cramer said there's nothing better than a motivated CEO with an activist push.

Lightning Round

In the Lightning Round, Cramer was bullish on Skyworks Solutions (SWKS) and DaVita (DVA).

Cramer was bearish on Cara Therapeutics (CARA), ARM Holdings (ARMH), Raven Industries (RAVN) and Lionsgate Entertainment (LGF).

2 of 3

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PAY $33.05 -1.00%
DOW $50.04 -1.00%
EXXI $2.21 -0.90%
TSLA $265.26 -5.20%
YHOO $37.81 -2.10%

Markets

DOW 17,564.32 -119.26 -0.67%
S&P 500 2,054.97 -13.79 -0.67%
NASDAQ 4,927.1360 -64.8040 -1.30%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs