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NEW YORK (TheStreet) -- Some stocks are cheaper than they appear, Jim Cramer said on Mad Money Monday as he sounded off against the professional money managers who trade the market like it's merely a basket of commodities.
Cramer reminded viewers that individual stocks are more important than the averages and indices and they should never be traded in baskets as you would wheat or corn. Cramer cited the battle over Hillshare Brands (HSH), as one reason why doing the homework and investing in individual stocks is better. Shares of Hillshire are up 60% in just a matter of weeks.
Other examples of individual stocks trouncing the averages include MeadWestvaco (MWV), a stock Cramer said he'd buy today now that activist investors are involved. Cramer also cited Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, as another activist investor success story.
Still need more proof? How about Allergan (AGN), a stock up 89% since just last August or Broadcom (BRCM), a stock up 9% just today on the announcement the company is selling off an underperforming division.
Cramer said all of these stocks have seen big gains but, more important, all of these gains could have easily been gotten with a little homework and the patience to invest for the long term. That's where home gamers have the advantage, Cramer concluded -- the big money managers prefer to invest with sectors and indices, leaving all of these names dramatically undervalued.
Executive Director: Gary Evans
For his "Executive Decision" segment, Cramer sat down with Gary Evans, chairman and CEO of Magnum Hunter Resources (MHR), a stock Cramer said is a more speculative way to play the oil and gas revolution occurring in America.
Evans confirmed the firm Relational Investors just purchased a 15% stake in Magnum because it realized the true value of Magnum's assets in the Utica and Marcellus shale regions. He said Magnum continues to sell its non-core assets and has another $300 million in asset sales planned for the remainder of 2014.