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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
AT&T (T) - Get Report and Time Warner (TWX) : So now that the AT&T and Time Warner deal has been announced, what should investors do if they own either stock? Cramer said he wouldn't buy either company.
While Cramer commended Time Warner for bringing out tremendous value for shareholders, he said the AT&T deal is likely to face many regulatory hurdles and may require unpalatable divestitures to get the deal done. Regulators have nothing to lose by denying the merger, he said, and the old system of fairness and due process seems to have been throw out the window since the financial crisis.
Cramer said he's also skeptical of the $85 billion price tag, which screams of desperation, and of the over-optimistic comments from AT&T management, which up until now has no experience in the content business.
From a business perspective, the deal admittedly makes sense, Cramer said, as interest rates are low and competitors like Verizon (VZ) - Get Report and Comcast (CMCSA) - Get Report are both making similar acquisitions, but the question remains as to whether any synergies can actually be realized.
Cramer said investors can get better income and growth opportunities elsewhere, and he wouldn't be a buyer of either of these stocks given the amount of uncertainty surrounding this merger.
B&G Foods (BGS) - Get Report : Investors looking for a safe way to play the beleaguered food stocks should consider B&G Foods, Cramer told viewers, as he turned the spotlight onto a company that's already up more than 40% for the year.
You may know B&G by its many brands, like Cream of Wheat, Ortega, Green Giant, and its namesake, B&G pickles. The company has always been known as a smart acquirer of high-quality, but neglected, brands that it then breathes new life into. But that strategy hit a roadblock in recent years as B&G struggled to impress Wall Street with growth after it passed the anniversary of each new deal.
But B&G reversed the trend in August of last year, when it acquired Green Giant, news that instantly sent shares up 10%. Sales have continued to be robust ever since.
B&G next reports this Thursday, and Cramer warned this will be the fourth quarter that includes the Green Giant earnings. But Cramer said he's not worried as the company has already announced a deal to acquire ACH Spices, which should drive growth for the next four quarters.
Shares of B&G trade at a well-deserved 20 times earnings according to Cramer and he was also impressed by the company's bountiful 3.5% dividend yield.
AGN data by YCharts
Allergan (AGN) - Get Report , Align Technologies (ALGN) - Get Report , e.l.f. Beauty (ELF) - Get Report and Ulta Beauty (ULTA) - Get Report : People have never been under more pressure to look their best, Cramer told viewers, and that's largely due to the rise of the selfie. In fact, over one million selfies are taken every day, and that's just in the 18 to 24 age bracket. Vanity has always been en vogue, but as more and more people document their lives on their smart phones, that trend is only accelerating. That's why Cramer introduced a basket of "Selfie Stocks" that are surging higher.
The first stock to make the list was Allergan, the drug maker that has become the leader in aesthetic medicine, branching out far beyond just Botox. People will also need a good smile for their selfies, and that means Align Technologies, makers of InvisAlign braces. That stock is already up 36% for the year.
Then there are the makeup stocks. Here Cramer re-recommended e.l.f. Beauty, the cosmetics maker with a strong online presence, and Ulta Beauty, which has a strong retail presence with 928 stores that last quarter posted 14.4% same store sales growth
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At the time of publication, Cramer's Action Alerts PLUS had a position in CMCSA and AGN.