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: The Market's New Reality

Cramer said he remains critical of Bill Ackman's and Valeant Pharmaceuticals' (VRX) proposed bid for Allergan (AGN), as he fears Valeant will destroy the rich research and development program for which Allergan is known. But, he said, there's no denying the deal has been a huge win for Allergan shareholders thus far.

Whether it's Mondelez (MDLZ), Pepsico (PEP), Ingersoll Rand (IR) or, more recently, Carl Icahn's public battle with Apple, Cramer said that in the end countless companies and their shareholders have been helped by these activists.

What's Up With Micron?

What's happening with Micron Technologies (MU - Get Report)? Cramer said this memory chip supplier has followed the same pattern for decades. When supply is tight the stock roars, but when excess manufacturing capacity comes online the stock gets crushed.

But with Micron now up 20% for the year, this time things might be different.

Cramer said this time the analysts are sticking by Micron, with 19 buy recommendations, 11 holds and only four sells. Why the change? In a word, consolidation. Cramer said there are only three major players left in the DRAM market, which still accounts for 70% of Micron's sales. With the steep decline in PC sales finally moderating, there's a good chance that Micron can increase its margins.

Then there's Micron's NAND flash business, which makes the memory needed for smartphones and mobile devices. Here, Micron is the third-largest player in a rapidly expanding market.

That's why Cramer said he's willing to bless Micron for speculation only because the stock is still not for the faint of heart. This time, he concluded, the rally in Micron may last a lot longer than usual.

Executive Decision: Chuck Bunch

For his "Executive Decision" segment, Cramer spoke with Chuck Bunch, chairman and CEO of PPG (PPG - Get Report), the chemicals and coatings maker that just delivered a 10-cents-a-share earnings beat on a 17% rise in revenue along with a $2 billion stock buyback program and a 10% hike in the company's dividend. Shares of PPG are up 400% since Cramer first spoke with Bunch in June 2009.

Bunch painted a positive picture of PPG, saying that volumes in Europe were up for the first time in 10 quarters. He said PPG is seeing a broad-based recovery in Europe that includes a lot more than just automotive sales.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MU $29.20 0.00%
PPG $223.31 0.00%
XLI $56.32 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs