( VTS) buyout spells opportunity in oil-survey technology names
, Jim Cramer said Tuesday on
"Stop Trading!" segment.
Cramer noted that Houston-based FMC and Netherlands-based Core Labs are both up 5% on the news of Veritas' $3.1 billion cash-and-stock merger with France's
. But "that's not enough," Cramer said, pointing to rising energy demand and the improved economics of drilling at higher oil prices. "I would still buy these stocks."
A stock Cramer wouldn't buy is
, he said, off the news that founder Sumner Redstone has parted ways with CEO Tom Freston. "I think you have to wait for Viacom," Cramer said. "
is the one to own."
Cramer said CBS chief Les Moonves has done a masterful job of setting expectations low and then smashing them. Freston, Cramer said, was more concerned with hanging out with Jon Stewart.
"I don't know any kid who watches MTV," Cramer said. "Freston didn't see that coming," he added, referring to the rise of
iPod and social networking sites like
Cramer reiterated his strongly bullish take on
. He said a recent regulatory filing shows that Chairman Ed Lampert bought back 2.3 million shares in the latest quarter.
Cramer said bears on the stock have been critical of falling same-store sales. But Cramer said skeptics have been missing the fact that the buyback will shrink the float and create demand for the shares.
"If he keeps buying at this pace, he's buying in half the company," Cramer said of hedge fund manager Lampert. At that rate, he added, "Who cares if they sold a lot of lawnmowers?"
At the time of publication, Cramer was long Sears.
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