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Jim Cramer's Stop Trading! Do the Dow Deal

Cramer says the buyout story is still alive.

The takeover games aren't over at

Dow

(DOW) - Get Free Report

, Jim Cramer said Thursday on

CNBC's

"Stop Trading!" segment.

Cramer noted that the stock is up 3% even after the firing of two execs tied to an unauthorized leveraged buyout effort. Cramer said he believes the rise reflects Wall Street's belief that one of the two, former finance chief Pedro Reinhard, will quit the board and lead an unsolicited takeover bid.

Cramer also criticized Dow chief Andrew Liveris, a member of the

Citigroup

(C) - Get Free Report

board, saying he and other Citi board members are "pro status quo."

Cramer gave a thumbs up to Sanford Bernstein's upgrade of

Pepsi

(PEP) - Get Free Report

and said

Gap's

(GPS) - Get Free Report

Old Navy unit is back.

Cramer is less taken with

MGIC Investment

(MTG) - Get Free Report

, saying it's going to get crushed by the collapse of subprime mortgage lenders.

At the time of publication, Cramer had no positions in stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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