Editor's note: This is a special sneak preview of Jim Cramer's just-released book,

Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)

. Look for more sneak previews every day, and get your free copy with your annual subscription to Action Alerts Plus; click here for details. Catch Cramer in person at his last book signing event: Saturday, Jan. 12, at 1 p.m. in Westbury, Long Island's Costco. Missed the first sneak previews? Read the book intro and the rules of getting and staying rich: Rule 1, Rule 2, Rule 3, Rule 4 and Rule 5. Know what pros do right and amateurs do wrong: Part 1, Part 2, Part 3, Part 4 and Part 5. Learn the five mini-bull markets that will stampede for years, starting with aerospace and defense, agriculture, oil and oil service, minerals and mining and infrastructure.

3. Never say never when it comes to a takeover.

One of the most unnerving parts of investing is missing a takeover that should have been yours after you left the stock because management and everyone else thought that the company couldn't or wouldn't be taken over.

Recently,

Dow Jones

(DJ)

, a company with two classes of stock, one that was meant to keep the company independent and family- run, succumbed to a takeover bid from Rupert Murdoch's

News Corp.

(NWS) - Get Report

. Pundits and analysts were adamant that this takeover could never occur, which is why the stock was at $35 before the $60 takeover bid.

It might seem an unusual case, but it isn't. In reviewing all my

Action Alerts PLUS bulletins for this book, I was dismayed to see that I had purchased Alcan around $52 because I believed there would be an imminent consolidation of the aluminum business as various mineral concerns were buying up independents. The stock rapidly fell to the $40s, where I bought more, and then dropped down to $39, where I bought even more to bring down my average cost. (Unlike when you are trading, it is perfectly fine to buy a stock that's down, because when you are investing you are getting a company you like on the cheap.)

When the stock got back to $45,

Phelps Dodge

(PD) - Get Report

, another mineral company, got a very big takeover offer from

Freeport-McMoRan

(FCX) - Get Report

, a gold and copper company. Alcan spiked in sympathy. Immediately, almost all of the analysts who followed the company either downgraded it or pooh-poohed the notion that it could be taken over or would be willing to be taken over. Management gave interviews in the Canadian press about how the company was not a target and had not gotten any inquiries, but it was definitively not for sale.

I read the articles and the analysts' reports, and even though I liked the fundamentals, I decided to boot the company for a small gain at $47. Less than a year later Alcan got not just one bid, from

Alcoa

(AA) - Get Report

, as part of a big consolidation in the aluminum business, but a second bid, for $101, by

Rio Tinto

(RTP)

, one of the largest mineral companies in the world. Alcan happily accepted that offer, which neither it nor the analysts thought was possible when the stock was at $47.

My conclusion: never say never about a potential takeover, even when management and the analysts point-blank rule it out. If a company has stock, ultimately that company is for sale. Don't get scared away just because the Street and the company's management don't believe it can be bought.

Editor's note: This is a special sneak preview of Jim Cramer's just-released book,

Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)

. Look for more sneak previews every day, and get your free copy with your annual subscription to Action Alerts Plus; click here for details. Catch Cramer in person to get it signed: Wednesday, Dec. 5, at 7 p.m. EST in New York City's Union Square Barnes & Noble; Wednesday, Dec. 12, at 7 p.m. in Bridgewater, N.J.'s Borders; and Saturday, Jan. 12, at 1 p.m. in Westbury, Long Island's Costco. Missed the first sneak previews? Read the book intro and the rules of getting and staying rich: Rule 1 and Rule 2.

From Jim Cramer's Stay Mad for Life by James J. Cramer and Cliff Mason. Copyright

2007 by Jim Cramer. Reprinted by permission of Simon & Schuster, Inc.

At the time of publication, Cramer was long Freeport-McMoRan.

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

Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To preorder Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," due in stores Dec. 4 -- on Amazon,

click here. Click

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