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NEW YORK (
) -- Want to know why the markets just won't quit? Jim Cramer told his
TV show viewers Monday that it's partially because the analysts are still too negative on stocks. That was clearly evident today as three left-for-dead names came roaring back to life.
was able to deliver terrific earnings that no one was expecting, especially the analysts who were supposed to know better. No matter what metric you use, whether it's tangible book value or the company's growth in emerging markets, Cramer said Citigroup deserves a higher valuation, which is why he's now recommending it as a buy, buy, buy.
was another forgotten stock until today, said Cramer. Sure, on an earnings per share basis the stock may have been fairly valued, but the analysts were forgetting that there's a spectrum shortage here in America, and operators are desperate for more bandwidth. That made the enterprise value of Leap a lot higher than where its shares were trading on Friday, which is exactly why
was willing to pay almost twice that value today.
Finally, Cramer singled out
for the addition of its three new board members. He said while boards of directors are typically not a focus on "Mad Money," in the case of HP, which has historically had one of the more fractured and dysfunctional boards of all time, the addition of three great candidates is huge news for this beaten-down stock.
If those weren't enough, Cramer said there's also
, which were left for dead by the analysts last year, but are up 150% and 179% respectively so far in 2013.
Know Your IPO
In the "Know Your IPO" segment, Cramer highlighted some upcoming deals he said are worth the invesment because initial public offerings remain one of the hottest spots in the entire market.
Cramer said digital coupon Web site
, is actually a real company with real earnings and deals with over 10,000 retailers across the nation. With 9.1 million shares pricing between $20 and $22 a share, he said he's a buyer up to $24, but would sell after the IPO has completed.
In the biotech space, two deals are coming soon. Cramer said
has five cancer drugs in early stage testing, while
is working on early stage treatments for both cancer and metabolic disorders. Both IPOs are attractive, but Cramer said he'd buy and hold some OncoMed, while selling Agios after the IPO.
upcoming spinoff of
, its dividend vehicle that's expects to offer 6% after it comes public. Cramer said with high-yielding stocks still under fire he's not a buyer of this stock, but would use it as a gauge for how the market is viewing the dividend stocks going forward.
Shopping for Grocery Stocks
Some stocks are under-appreciated on Wall Street. That's certainly the case with
, said Cramer, the nation's second-largest grocery store chain that somehow caught a downgrade after announcing it was acquiring
Cramer said that for Kroger, which has 2,400 mainstream locations, the acquisition of upscale Harris Teeter makes perfect sense. That was evident by the fact that Kroger shares actually rose on the Teeter news, he said. But since there are no Harris Teeter or Kroger stores in New York, the analyst community missed that message.
With so much attention being paid to the organic section of the grocery business -- think
-- Cramer said its easy to see how a stock like Kroger could get overlooked. But unlike years past, even mainstream grocers are making money now thanks in part to increased margins from expanded private label offerings.
Trading at just 12.2 times earnings with a 9% growth rate, Cramer said that Kroger is still not an expensive stock and he's a buyer now that the company has chosen to enhance its growth though this smart acquisition.
In the Lightning Round, Cramer was bullish on
US Airways Group
Cramer was bearish on
Executive Decision: Martin Richenhagen
In the "Executive Decision" segment, Cramer spoke with Martin Richenhagen, chairman, president and CEO of
, the agriculture equipment maker that's helping to feed our ever-growing global population.
Richenhagen said his company is helping farmers around the globe increase their production thanks to new technology that is reducing fuel consumption and the amount of fertilizers and pesticides needed to boost crop yields. He said business remains strong for agriculture around the globe, including in India where Agco is already the number-two player.
Agco is following the global trend of higher incomes. He said as emerging markets continue to expand, people want to eat better foods, including more meat, which then drives the need for increased crop production.
Cramer told viewers that anytime they can get a quality industrial name like Agco for under 10 times earnings, they should do so.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said investors must still keep an eye on China, but they no longer need to keep
eyes on the troubled economy.
The latest 7.5% Chinese GDP number was right in line with expectations, said Cramer, and that's the first step to forming a bottom. More importantly, the U.S. markets have been able to rally without China, which makes any news from that country an upside surprise, rather than a downside surprise.
China, he said, may soon be seen as a non-event like Europe, but for the time being it has just become less important than earlier this year.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.
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