NEW YORK (TheStreet) -- Shares of Zoetis (ZTS) are slightly lower on Tuesday, despite announcing a $500 million share repurchase program. "This company has been the leader in science for animal health," said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio.
The company, a spinoff from Pfizer (PFE) with a $22 billion market cap, may have announced the buyback in order to prevent a possible takeover attempt from Valeant Pharmaceuticals (VRX) and hedge fund manager Bill Ackman.
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Ackman recently took a $2 billion stake in Zoetis, a company that is clearly in defense mode, Cramer said on CNBC's "Cramer's Mad Dash" segment.
The stock is up about 47% in the past six months alone, prompting Cramer to ask, "Isn't management performing well enough? Why bring in an activist investor?"
He turned to GoPro (GPRO) , which is higher by 4.5% after announcing a secondary offering of 10.4 million shares, 1.3 million of which are new shares and 9.1 million shares of which are from insiders.
The secondary offering appears to be "widely over-subscribed," Cramer reasoned, which is forcing investors to go to the open market to buy more shares. The holiday season is likely to be strong for GoPro and the short squeeze is pushing the stock higher, he concluded.