"The rally is taking a breather, but it's the most impressive I have seen since 1991," Jim Cramer said on his
"RealMoney" radio show Friday.
Whereas in the past, companies issued stock to raise capital, they are not "by and large" issuing stock now, "they are buying back stock because they have more than enough money to manage their businesses," he said.
"This is a melt-up, the opposite of a meltdown," Cramer said. "Buyers are coming in the market and they are willing to pay more money to the sellers."
The demand is huge, but the supply of stock isn't, he said, adding that it's becoming a theme for companies to buy back stock.
Every conference call Cramer said he listens to sounds the same. In each one, companies state they have bought back 2% to 3% of their stock in the past year and are looking to buy back more.
The market is "simply bullish" and is going higher, he said.
"Choosing the right stock to purchase is not an easy feat," Cramer said. "There are times when a stock looks good, but the company just can't seem to get it together."
, which he owns for his charitable trust,
Action Alerts PLUS, has been a "disaster," he said.
However, the stock which recently declined to $22 and is now at $25.54, reminds Cramer of
when it was low and everyone thought it was bad before it rallied.
"The company has failed to deliver on dozens of metrics, and while the top management is steady, the place has become turnover city," he said.
But after listening to
call and reading the Microsoft notes, Cramer finds it hard to believe that Yahoo! will stay independent.
"Microsoft reported just an abysmal Internet number, and Comcast didn't rule out buying Yahoo!" he said.
Other companies that could possibly buy Yahoo! are
, Cramer said.
Yahoo! does have some "scarcity value" like
, as one of the only companies that "made it" in the Internet market, except for
, he said.
This makes Yahoo! worth something to these companies.
The bottom line is that although Yahoo! may have bottomed and could be taken over, Cramer said he still can't recommend it as a strong buy because the company's fundamentals are not good.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
At the time of publication, Cramer was long Yahoo!
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
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