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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).