Did you miss "Mad Money" on CNBC? If so, here are some of Jim Cramer's top takeaways.
Back in February, CBS (CBS) - Get Report announced a plan to merge its radio assets with Entercom in a deal known as a reverse Morris trust. Cramer explained that this complex tax maneuver allows CBS to merge with Entercom with positive tax benefits. Shares of Entercom initially spiked 10% on the news, but has since fallen from $16 to just over $10 today.
Cramer said while some Entercom shareholders may not have liked the 105 million shares the company will have to issue to make the deal happen, at $10.50 a share, Entercom is a screaming buy. That's because Entercom is a very well run company and, once merged with CBS, will be attractive to institutional investors who cannot cover the current stock with a market cap of just $430 million.
Unlike TV, which is getting hit hard from online competition, radio is different because most people still listen in their cars. Nothing has the penetration of radio, Cramer concluded, and with 244 stations in just about every major market, much of that penetration will soon belong to Entercom.
Over on Real Money, Cramer says there are more reasons to be skeptical of the government: economy data. Get Cramer's insights with a free trial subscription to Real Money.
Cramer and the AAP team are raising their target price on DowDuPont (DWDP) - Get Report . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
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At the time of publication, Cramer's Action Alerts PLUS had a position in DWDP.