Skip to main content

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.

Image placeholder title


data by


R.R. Donnelley (RRD) : Cramer asks if R.R. Donnelley & Sons has gone through a bad breakup.The company spent the past decade making acquisitions to diversify its business, but those businesses became undervalued. That's why splitting up the company to unlock value seemed like such a good idea.

Earlier this month the split became official, with LSC Communications (LKSD) and Donnelley Financial Solutions (DFIN) joining R.R. Donnelly to make three separate, publicly-traded entities. However, all three have struggled since the breakup.

Cramer wanted to look to see if any of them seemed worthy of a buy.

LSC Communications is a leader in cost-effective print-related products. However, it's growth is flat to negative and without acquisitions, the stock will continue to flounder, Cramer said.

Donnelley Financial has slow growth, but at least it's growing. Because it has low fixed-costs, the company can be flexible and it has loyal customers. Plus, it's somewhat tied to financial markets, as it is responsible for a number of financial statements. Should deal-making and IPOs continue into the future, this company should benefit.

Real Money Pro: Cramer on what a Democratic landslide could mean for stocks.

R.R. Donnelley is the strongest of all three, Cramer said. It has organic growth in the low- to mid-single digits and works with companies looking to communicate with its customers. While this is the most attractive stock of the three, it has been saddled with a majority of the debt too.

Here's the bottom line: While Cramer applauded the company's breakup strategy, there are still too many question marks. Which will pay a dividend and how much will it be? That needs to be answered first, he said, adding that he likes R.R. Donnelley and Donnelley Financial the most, but can't recommend them at this point. 

Image placeholder title (CRM) : On Wednesday, investors were buzzing about Colin Powell's hacked email account. Powell is a board member at (CRM) and among the discoveries was a leaked list of potential M&A candidates for Salesforce from a presentation in May. Of course, Cramer had to have a look too.

Right off the bat, it was easy to eliminate some of the candidates - strangely none of which was Twitter (TWTR) , despite Salesforce's recent interest.

Investors can forget about Demandware (DWRE) , LinkedIn (LNKD) , Marketo and NetSuite (N) , all of which have been or are being acquired. Remember, the list is from May, so that's not too surprising that some are gone.

Adobe (ADBE) is simply too large to acquire, Cramer said, while Workday (WDAY) and Veeva Systems (VEEV) also seem unlikely. Box (BOX) and Zendesk (ZEN) don't seem like they want to be bought and Salesforce seems unlikely to perform a hostile takeover.

Tableau Data (DATA) seems like a bad fit and while ServiceNow (NOW) is an "unbelievably good" company, it's valuation is too high for a Salesforce takeover, he reasoned.

That leaves just two companies from the list: HubSpot (HUBS) and Pegasystems (PEGA) . Both have a small enough market cap - $1.8 billion and $2.3 billion, respectively - and the businesses that would compliment Salesforce, Cramer said.

Here's the bottom line: Investors should never buy a stock solely for its M&A potential; the companies need to have solid fundamentals as well. However, Cramer said, a majority of the stocks listed above do have good fundamentals, so speculating on them may just pay off.

Real Money Pro: Sham Gad says here's how to buy what others are selling.

To read a full recap of "Mad Money" on CNBC, click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.