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NEW YORK ( TheStreet) -- What's bad for everyone else might actually be good for us, Jim Cramer told his Mad Money viewers Monday after a mixed day on Wall Street. Cramer said this morning's losses and afternoon's gains prove that not all markets need to trade in tandem.
The markets initially fell on news that Japan is slipping back into recession, Cramer noted, but by the afternoon those early losses were gone, replaced by several notable gains. Why the change of heart? Cramer said it's because of a "failure of parallel thinking" on the part of money managers that prevents them from seeing the the U.S. is currently in a league of its own.
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Then there are the biotechs, Cramer noted, with stocks like Regeneron (REGN) proving they don't need Europe or Japan to reach new highs. Neither does the primarily U.S.-focused Tyson Foods (TSN) , which delivered a solid upside surprise in today's session.
Yes, Europe, Russia and now Japan remain concerns for the markets, Cramer admitted, but that doesn't mean all of our stocks need be held hostage. As today's market proved, there's plenty of U.S good news to cast a shadow on any morning weakness.
Why Marathon Petroleum Should Buy CST Brands
Merger Mondays are clearly back in vogue, Cramer told viewers. So he put on his matchmaker hat and made a case for why his favorite oil refiner, Marathon Petroleum (MPC) , should buy CST Brands (CST) , which owns and operates 3,000 gas stations across the U.S. and Canada.
Cramer reminded viewers they should never invest on takeover rumors unless a company's fundamentals are sound, something that is certainly the case with CST. He explained that CST actually makes more money when gas prices fall because consumers have more money leftover to buy food and other necessities. That's especially good news for CST, which is rolling out a new, expanded convenience store format. CST is also moving into private-label products, which are helping to further boost the company's gross margins.
As for Marathon, this company has already made successful gas station acquisitions and knows exactly how to integrate CST to take full advantage of the synergies as well as increase sales even further.
Cramer said based on similar deals, he thinks CST could fetch as much as $4.8 billion, or $53 a share, leaving investors with a 26% premium from today's prices.
Looking for a Lulu of a Bargain
With the markets at all-time highs, how can investors find bargains? By looking for laggards and turnaround stories like Lululemon Athletica (LULU) , Cramer said.
Cramer said Lulu was once the definition of momentum, but two years ago the company stumbled with product quality issues, a CEO departure and supply chain problems that have taken its stock down 36% over the past 24 months while rivals like Nike (NKE) and Under Armour (UA) are up big.
Why not just give up on Lulu? Cramer said the stock now trades at just 22 times earnings and just reported its first good quarter in ages, likely the first of many as it has fixed many of its problems. With sales up 13% and rapid expansion plans, Cramer said Lulu appears to be on the road to recovery.
He was not happy with the company's declining operating margins, but noted that the product mix is being fixed and investments being made today will yield even better results down the road.
Executive Decision: Jay Monroe
Monroe said Globalstar wasn't a controversial stock until Kerrisdale Capital Management, an activist firm, got involved and became very negative about the company. He said all of the negative chatter has now made his company very polarizing with investors.
When asked about his company's plans, Monroe said that if the FCC approves, Globalstar will be able to partner with large telcos, cable providers and technology companies to offer an in-home Wi-Fi alternative that will be much more reliable and faster. He said some people will be willing to pay for that additional quality.
On the costs to Globalstar, Monroe said the network buildout would almost be free since the satellites are already in place and all customers would need is an access point to connect.
As for the continued dilution of Globalstar's shares, Monroe assured investors that most of the "painful" dilution is behind the company. Monroe was not able to offer any guidance on when the FCC might make a decision on Globalstar's request to use its spectrum for terrestrial uses.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer offered his congratulations to Allergan (AGN) CEO David Pyott for not only building a phenomenal company, but also rewarding shareholders with a stock that's risen from $28 six years ago to over $219 a share today.
Cramer said Pyott has been a CEO dedicated to creating wealth for everyone. Allergan spends more on research and development than any other pharmaceutical company, he noted. It shows with Allergan's first-class eye care business, its continued new uses for Botox and a pipeline that is second to none.
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-- Written by Scott Rutt in Washington, D.C.
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