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NEW YORK (TheStreet) -- Sometimes there’s so much good happening that you can’t even comprehend it, Jim Cramer said on Mad Money Wednesday. You’re just dazzled by all the ways this market gives you to make you money.
The gains in this market have been extraordinary, Cramer said. Why? It’s simple. Managements will not let up about their stocks being too cheap. They hate it and keep doing something about it.
Look at Time Warner (TWX), which turned down an $80 billion takeover offer from 21st Century Fox (FOX). Time Warner stock jumped 17.1% on the news. Everyone knows the cable companies have been consolidating, Cramer said, creating turmoil among content providers who need heft for their products to compete among a smaller amount of cable operators that are increasingly powerful.
This deal makes so much sense, Cramer said he’s kicking himself for only recommending Time Warner for its excellent fundamentals and buyback and not because it’s also a takeout candidate.
With the market where it is, what plays are left in this sphere that can benefit from the need to consolidate to compete? Cramer says you want to look for aggressive buybacks, the value of entertainment and the importance of a simplified pure play.
Look at CBS (CBS), Cramer said. Cheap still, good product, making itself easier to understand. Disney (DIS) went down today because analysts thought it might bid for Time Warner. Cramer doesn’t think that’s going to happen. But buy Disney; it can’t be taken over and traded softly Wednesday, he said.
Then there’s "Old Tech." Cramer has been pushing low-price, high-reward tech names like Intel (INTC) for quite some time. Intel was up 9.2% at Wednesday’s close. Cramer would also recommend Cisco (CSCO) and Hewlett-Packard (HPQ).
Finally, there's the oil sector beginning with Whiting Petroleum (WLL), which bought Kodiak Oil & Gas (KOG). Cramer thinks we’re about to see a consolidation trend in the oil and gas group and said the best plays are EOG (EOG), Occidental Petroleum (OXY), Anadarko (APC), Marathon (MRO) and Pioneer Natural Resources (PXD).
Seeking New Ideas
Cramer said he's always searching for new ideas. That's why when he got the opportunity to host a panel with fund managers Lee Cooperman, Larry Robbins and Mike Novogratz at CNBC's Delivering Alpha conference, he kept his ears open.
First on the list was a pick by Mike Novogratz, a contrarian investor who is running towards Brazil on the hopes that the country's failed government will be replaced soon by a pro-business administration. Novogratz said he liked Petrobras (PBR) on the strength in oil drilling around the world.
Also on the list, Thermo Fisher Scientific (TMO), a company that's always bringing value to shareholders, and National Oilwell Varco (NOV), another company that's benefiting from more oil drilling and is aggressively retiring stock.
The three managers also gave the nod to Citigroup (C), which still trades below book value even as the company puts its troubles behind it.
Finally, there was Flextronics (FLEX), the contract assembler of electronic goods that trades at just nine times earnings and has pledged to retire 20% of its stock annually.
In a special "Speculation Wednesday," Cramer looked at Fiesta Restaurant Group (FRGI), a stock that stumped him during an earlier show. Cramer said that it turns out Fiesta Group is a regional to national growth story that fits perfectly as a speculative play in your portfolio.
Fiesta Group currently has two concepts, the Miami-based Pollo Tropical and the Texas-based Taco Cabana. Pollo Tropical is the company's shining star, with 6.3% same-store sales growth and plans to grow the chain by 17% a year. Taco Cabana is struggling at just 0.5% same-store comps, but the company has plans to turn that chain around with store remodeling and online ordering initiatives.
Shares of Fiesta Group are up 25% over the past one year but are also down 15% so far in 2014. Trading at 29 times earnings with a 20% growth rate, Cramer said Fiesta Group isn't cheap, but with a good balance sheet and solid management, this little-known company is worth the speculating.
Executive Decision: Michael Mears
For his "Executive Decision" segment, Cramer spoke with Michael Mears, chairman, president and CEO of Magellan Midstream Partners (MMP), the master limited partnership with over 9,500 miles of pipelines that transports mainly refined products across the U.S. Shares of Magellan are up 33% so far this year.
Mears said Magellan continues to grow in the Permian Basin as production there ramps higher. He said his company is in the sweet spot, with lots of capacity running from the Permian into the Gulf of Mexico.
Magellan is also doing well in Eagle Ford shale because its new pipeline splitter in Corpus Christi, Texas, can take multiple products and separate them quickly to get them where they need to go. That pipeline, he noted, is 100% fee-based and is not tied to the price of oil.
When asked about our country's biggest oil challenges, Mears said it's access to bigger markets. He said the current ban on crude exports limits how much can be produced as there's only so much refining capacity available.
Cramer said Magellan is the great growth stock for this point in time. If the U.S. does allow crude exports, Magellan is the best-positioned player to make that happen quickly and with huge profits.
In his inaugural edition of "Stock Photography," Cramer opined on photos sent in by viewers with the hashtag #stockpics, turning photos into sage advice.
Cramer said he's still a fan of Sirius XM Radio (SIRI) and thinks the stock runs to $4 a share. He's also a fan of Pepsico (PEP) and Halliburton (HAL), a company he thinks of as technology rather than oil service.
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-- Written by Scott Rutt in Washington, D.C.
Chris Sahl in Boston contributed to this report.
To email Scott about this article, click here: Scott Rutt