The Urge to Merge
With the urge to merge running rampant on Wall Street, Cramer said it's worth while to talk about a merger that failed to happen -- the merger of equals between ad giants Omnicom Group (OMC) and the privately held Publicis.
Cramer said despite working on a deal since last summer, these two advertising Golaiths failed to come to terms and canceled their plans to merge. That may be bad news for Omnicom, he added, but it's great news for Interpublic Group (IPG), the number four player in the ad space.
Cramer explained that in the increasingly competitive advertising arena, Omnicom and Publicis were desperate to merge and increase their scale. So if they can't buy each other, why not buy Interpublic -- which is not only a cash cow but small enough to easily acquire.
Cramer reminded viewers that he never recommends a stock on a takeover basis alone. Interpublic also has terrific fundamentals. The company has instituted a successful turnaround, has a 1.9% yield and a $300 million stock buyback program. Shares trade at a scant 16.5 times earnings, but Cramer said it's likely worth 20 times earnings in a takeover scenario.
Executive Decision: Bob Carrigan
For his "Executive Decision" segment, Cramer sat down with Bob Carrigan, president and CEO of Dun & Bradstreet (DNB), the business credit information provider that's bought back over 58% of its own shares in recent years.
Carrigan said D&B's business is the same as its always been: providing companies with accurate and insightful credit information. But the way it gets that information and the modern ways it provides it have changed quite a bit over the years.
Carrigan noted D&B now has a database of 235 million companies around the globe and gets information from over 30,000 different sources. The database is updated over five million times a day, giving his company substantial advantages over all their competitors, he added.