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"I've found the next Alltel and it's not who you might think," Jim Cramer told viewers of his "Mad Money" TV show Thursday.
He said that after today's announcement of the buyout of privately held Alltell Communications by Verizon Wireless, a joint venture between
, investors should be looking for the pin-action that will make them money.
According to Cramer,
will be the biggest benefactor of the Verizon Wireless-Alltel deal, but not for the reasons investors might think. Cramer views Windstream not as a takeover target, but rather as an acquirer.
In order to make the merger happen, he said, Verizon Wireless will inevitably be forced to sell off some of its overlapping regional assets and Windstream will be in the perfect position to purchase them.
He said the situation is similar to his recent recommendation of
, who saw its stock nearly double after it acquired assets that
Johnson & Johnson
was forced to sell after it acquired them from a deal with
Cramer: Why Is This Market Still Up?
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These new assets would be a windfall for Windstream, said Cramer. The company is currently a niche rural wireline provider, seen by Wall Street as a low growth, high yield entity. However, with the addition of a few sizzling wireless properties, the company could command a higher stock price and a higher stock multiple.
Cramer said he'd be a buyer of Windstream, and sees the company's 7.6% dividend yield as just paying him to wait for the real money to roll in.
A Lot More Upside to Come
Cramer said there is a lot of upside left for
, two stocks he recommended on March 1.
Since his March recommendation, both Bucyrus and Joy Global have risen 17%, but Cramer said the rise is not over, it's only just begun. Having recently talked with the CEO of Joy Global, Cramer welcomed Timothy Sullivan, president and CEO of Bucyrus, to the show to amplify.
Sullivan told Cramer that Bucyrus is indeed a "high-tech" company. He said that many of the company's laptops are so sophisticated that they can tap the computers on the excavators that mine for minerals from the Andes Mountains to the Arctic Circle. He dispelled claims that higher raw costs lead to lower equipment sales. Instead, he said it's more like a complete circle in which the company can pass on rising costs to its customers.
Cramer said Bucyrus is a $5 billion company that should be a $10 billion company.
In the "Sell Block" segment, Cramer explored what he called the timid and pessimistic attitude that prevents investors from buying stocks and making the easy money. "If you've got he bat on your shoulder waiting for that perfect pitch, you're missing opportunities," he Cramer.
as the perfect example of this attitude in action. He called last week's weakness in Nucor's stock "the perfect entry point," but he noted that many investors stayed on the sidelines at a time of overall market weakness. Today, however, the company preannounced a better-than-expected quarter, and Nucor's shares are now up 11.9% from the lows of last week.
"Is Nucor still good," Cramer asked? "Yes, but now the easy money has already been made," he said. Cramer called Nucor a great company with a long history of supporting shareholders. He told investors there should have been no reason for them to doubt the company or its long-term growth prospects.
Cramer said that when a company with great fundamentals does a secondary offering to pay for a fantastic acquisition and the stock falls below the offering price, buy it! "You cannot allow yourself to be scared off by great companies at great prices," he told viewers.
In this segment, Cramer told a viewer that he's still behind
after his recent visit to the USS Harry S. Truman aircraft carrier.
Cramer was bullish on
Plum Creek Timber
Cramer was bearish on
Ambac Financial Group
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At the time of publication, Cramer was long Corning.
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