Cramer said investors need to do their homework before investing in retail. The exchange-traded funds may treat all retailers as replaceable commodities, but they're anything but.
Goodbye, CEO; Hello, Breakup
When a long-time CEO retires, there's always a chance for a change in strategy, Cramer told viewers. In the case of Danaher (DHR) that new strategy might include a breakup to unlock value.
Cramer has long sung the praises of corporate breakups. He said once a company reaches a certain size, it just cannot be effectiely managed or valued by the Wall Street analysts -- which is why splitting into manageable pieces is always met with higher share prices.Danaher is a conglomerate now worth $54 billion, thanks to a 25-year history of smart acquisitions. After hundreds of these deals, shares of Danaher have risen 7,587% over those past 25 years. But as the company grows, these deals "move the needle" less and less, Cramer said, which is why a split makes so much sense. It would allow the pieces to resume a strategy that has a long history of results. Cramer said Danaher should split into four units: a water business, industrial technology, life sciences and testing and measurement. All of these parts total up to $90 a share, Cramer said, or 15% more than shares trade today. Give the parts the premium they deserve and that number could be as high as $100 a share, for a 27% premium.
Executive Decision: Stanley CrookeFor his "Executive Decision" segment, Cramer spoke with Dr. Stanley Crooke, chairman and CEO of Isis Pharmaceuticals (ISIS), a stock that's been cut in half in recent weeks despite the company's 32 drugs under development. Shares of Isis popped 11.5% today on positive data for one of those drugs. Crooke said today's news centered around the company's anti-thrombosis drug, which was proven to be seven times more effective in a small number of patients. He said the drug could be used very broadly in a number of indications but there is still more work to be done to get the drug to approval.
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