NEW YORK (TheStreet) -- Stocks are bouncing back Wednesday, including a 17% boost in Western Digital (WDC) - Get Report  thanks to Unisplendour, a Chinese company, taking a large stake in the company, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Unisplendour is paying $92.50 per share for a 15% stake in Western Digital, a significant premium to the current stock price of $80. However, despite today's move higher, the stock is still down 27% on the year. 

Seagate Technology STX and Western Digital WDC data by YCharts

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Western Digital has good cash flow but investors are tossing these types of companies out when they don't have earnings growth, Cramer explained. But when stocks are down big in a tough market, there are investors willing to step in as buyers.

Not all these investors are hedge funds and activists -- some come in the form of other companies too, he reminded viewers. That's why Western Digital's competitor Seagate Technology (STX) - Get Report  should be looking for a big buyer. Seagate stock, at around $44, is down close to 34% on the year. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.