Jim Cramer's 'Mad Money' Recap: Controlling Your Destiny
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NEW YORK (TheStreet) -- What's the best way to reignite growth when growth gets hard to come by? Jim Cramer told his Mad Money TV show viewers Monday that takeovers are the natural place to look, which is why this market has them in spades.
Cramer said today's deal by Kinder Morgan (KMI) to bring all its master limited partnerships under one roof -- orchestrated by none other than Richard Kinder himself -- is just one example of spurring growth and rewarding shareholders with a quick 9% gain. Cramer said the new Kinder Morgan must be owned as the North American Energy revolution rages on.
Read More: Warren Buffett’s Top 10 Dividend StocksWho else should be looking to make acquisitions to spur growth? Cramer said Coca-Cola's (KO) growth has stalled, and he thinks the company should consider bring either Kraft Foods (KRFT) or Mondelez (MDLZ) to get the growth engine started again. Then there's Darden Restaurants (DRI), the purveyors of Olive Garden and Red Lobster, and a company that's clearly lost its way. Cramer suggested Darden buy a red-hot IPO like Del Frisco's Restaurant Group (DFRG) or El Pollo Loco (LOCO). Cramer said companies don't just need to rely on the economy for their growth. They can take control of their own destinies, like Richard Kinder, and get their growth back on track.
Buy PricelineWhen it comes to Priceline.com (PCLN - Get Report), the analysts tend to have very short memories, Cramer told viewers. Every quarter the company reports its earnings and sees its shares get slammed. Then shortly thereafter, every quarter, they rebound sharply.
Cramer said Priceline practices a philosophy he calls "UPOD," or under-promise, over-deliver. Every quarter the company blows away its earnings, but offers conservative guidance that analysts almost always perceive as "disappointing." But after speaking with management on the conference call, confidence is restored and shares immediately spike back to their historical levels. In today's session, investors could have caught a $60 swing from the time Priceline's earnings hit the tape until 80 minutes later when the conference call ended.
Read More: 10 Stocks Carl Icahn Loves in 2014 Cramer said Priceline represents a real opportunity for investors four times a year, but it's not alone. He said Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, also practices "UPOD," as do Johnson & Johnson (JNJ), Celgene (CELG) and Starbucks (SBUX).
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