Jim Cramer's Best Blogs

NEW YORK ( TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
  • two potential takeover targets that are worth a bet; and
  • why secondary offerings have become the new IPOs

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.


Lively Action for Two Takeover Targets

Posted at 3:10 p.m. EDT on Friday, March 30.

I don't like to traffic in takeover names. Far too often they end up being spoilsports that really hammer you, and you end up losing far more than you have ever gained if you finally hit.

Who knows how much has been lost betting with Sprint Nextel ( S), or Eastman Kodak or Radio Shack ( RSH) or Research In Motion ( RIMM) for that matter? A lot more than you've made, I am most certain.

Occasionally, though, you get a stock that's up big on what looks like takeover action that won't kill you if you don't catch a bid. And then, on very rare occasions, you get not one but two potential targets that are worth buying even without a takeover bid.

Today is one of those days. Both Core Laboratories ( CLB) and Pioneer Natural Resources ( PXD) are up huge today. Until this year's bizarre trading decoupling between stocks and the commodities in the oil patch, we've seen a whole host of mergers that have been terrific for all involved.

> > Bull or Bear? Vote in Our Poll

We've seen huge deals in both the service side and in the independent oil side.

Maybe it's heating up again. Core Labs is a technology stock that happens to be in the oil business. It tells you how much oil is in the ground before you go wasting millions of dollars. Pioneer Natural is a terrific oil and gas company that I have loved for some time because of its earnings prospects and tremendous growth -- about 75% as of earlier in the year.

Core is about $6 billion, Pioneer about $13 billon. Considering that finding oil is more lucrative than ever and that natural gas, a big part of Pioneer's portfolio, is a necessary export item for many a foreign national firm, both Core and Pioneer work as buys, despite these large run-ups.

Is something happening? The stocks, which have bucked this current downtrend, give a resounding yes. The options market? For Pioneer yes, for Core Labs no.

I know oil has become totally toxic, the anathema of performance, but these two stocks can still do well for you. Of course, I would do them in deep-in-the-money calls and not common. Too much to lose. I might even take some out-of-the-monies. The action is just that odd in them.

Remember, if there is no deal, they are going to get hit, but not hit beyond recognition. And if there is a deal?

To the moon!

Random musings: I believe that the Saudis must be pumping like mad. I think that, and not the potential releases from the Strategic Petroleum Reserve, is behind oil's fall. What makes me think that? How about the run in Nordic American Tankers ( NAT), the biggest tanker company in the world. It has been a burn-the-house-down stock with a huge yield to boot.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.


Secondaries Are the New IPOs

Posted at 12:50 p.m. EDT on Friday, March 30.

The heck with IPOs as a way to judge a market. Secondaries tell a much better story. Why would you ever put in for stock in a secondary unless it was deeply in the hole, meaning that it came at a substantial discount to where a stock was trading ahead of the deal?

But we got two deals this week that showed the true power of this market: 25 million shares from Dollar General ( DG) shareholders, priced at $45.20 and 26 million Dunkin Brands ( DNKN) shares at $29.50. Neither stock was sold at much of a discount to the last day's trading.

Both stocks immediately went to a premium, meaning that you made money on both deals instantly.

That's a sign of true health. More importantly in the case of Dunkin Brands, a whole slew of officers and directors bought stock in huge amounts, not just token-size takes. The shares buys were some of the most aggressive I have seen in some time. While the sellers might have been the private equity guys ringing the register on a phenomenal deal, the buyers were people who aren't going anywhere and can't do any selling for at least six months as per insider trading laws.

What a statement!

It's true that dollar stores have been all the rage with even Family Dollar ( FDO) reporting a terrific number this week. It's a terrific secular trend that I have been riding for some time as the stores have catered to the lower classes and moved up the food chain with more middle-class buyers.

Given that about one-third of the nation is on food stamps and these stores have moved aggressively into food, including packages made specifically for dollar stores, the case could be made that we have something big going on here. So you could say that Dollar General was unique in its opportunity.

But Dunkin Brands wasn't unique at all. It is part of a big secular coffee drinking trend, and it did put through a terrific dividend -- it now yields 2% -- and it has gained 20% for the year. But it was a pretty run-of-the-mill secondary, and it turns out there was so much demand that they had to increase the size of the deal and raise the price of the offering. That is just downright remarkable.

So, while some want to draw the conclusion that red-hot IPOs like the recently minted Millennial Media ( MM), Brightcove ( BCOV), ExactTarget ( ET) and Annie's ( BNNY) are signs of froth, I think the success of the Dunkin and Dollar deals shows that there's just tons of money that want high-quality merchandise at a minimal price break. That bodes incredibly well for the second quarter of 2012, a really huge statement after the best quarter since 1998.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

More from Investing

Market Can't Handle the Wild Ride: Cramer's 'Mad Money' Recap (Thursday 5/24/18)

Market Can't Handle the Wild Ride: Cramer's 'Mad Money' Recap (Thursday 5/24/18)

Musk's Tweets About Unions Draw Fire From United Auto Workers

Musk's Tweets About Unions Draw Fire From United Auto Workers

Replay: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation

Replay: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation

Gap Drops After Hours on Disappointing Earnings, Weak Same-Store Sales

Gap Drops After Hours on Disappointing Earnings, Weak Same-Store Sales

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz