After flatlining for a multiyear period,
finally started breaking out Tuesday, Jim Cramer told listeners on his
"RealMoney" radio show Wednesday.
That's because the company's management has decided to take matters into its own hands, he said, adding that the company is frustrated with its inability to go up.
However, the people who run Clear Channel are "dangerous when they try to do something about the stock," Cramer warned.
First, they tried to get into live entertainment, and then it was outdoor advertising -- both of which they eventually got out of. Then the company "embraced the Net" and forgot about it, he said.
"I think rather than pondering why their stock is so low, they should wonder why it isn't even lower with its track record," Cramer said.
The fact of the matter is that Clear Channel is a company with "little natural growth, it has fired just about everyone it can fire, and it's too big to take over any other radio company," he said.
Now what the management wants to do is take the company private.
"Some industries are simply in decline and don't come back," Cramer said. "Clear Channel doesn't want to admit it and neither do the newspapers."
The bottom line is a deal for Clear Channel to go private would make "no sense," he said. Although it could get done, Cramer said he doesn't want market players anywhere near this stock.
If people are in
they're up $4 today, Cramer said.
The company reported a double-digit gain in earnings, when it sells at 15 times earnings, he said.
"Norfolk Southern was knocked down and was not doing as badly as the market indicated," Cramer said. "It is a buy."
Another company to buy in this sector is
, he added.
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