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The markets are clearly going gaga over corporate mergers, with stocks like Perrigo (PRGO) extending its gains to over 21% this week, while acquirer Mylan (MYL - Get Report) has seen its stock also rise over 20%. But that doesn't mean investors should be rolling the dice looking for the next possible deal.
Instead, Cramer advised sticking with quality names that are seeing their shares offer up attractive entry points. Retail giant Costco (COST - Get Report) missed the quarter slightly, giving investors an attractive entry point. Shares of American Airlines (AAL - Get Report), Rite-Aid (RAD - Get Report) and Alcoa (AA - Get Report) were also winners in Cramer's book, as was Twitter (TWTR - Get Report), an Action Alerts PLUS holding.
Sun Edison Shines
With oil prices in decline, how is it that Sun Edison (SUNE), a solar energy stock, has been able to rally 53% over the past six months? Cramer dug in to find out.
Sun Edison is a full-service provider of solar energy, offering everything from design and installation services to financing, monitors and maintenance of completed systems. But more than that, the company has also taken bold actions to unlock value in its quest to become a major renewable energy provider.
Sun Edison's first move was to jettison its slower growing semiconductor business. That was followed by the creation of Terraform Power (TERP - Get Report), a company that owns and operates the projects that Sun Edison builds. Terraform generates a ton of cash, allowing it to make acquisitions and still offer a 2.7% yield.
Cramer called the spinoff of Terraform a brilliant move for Sun Edison as building and operating these facilities are very different animals that investors can now value separately. Since its creation a year ago, Terraform has already made two sizable wind power acquisitions, while Sun Edison continues to have a 3.6-gigawatt backlog with more deals in the pipeline.
All of this makes Sun Edison a renewable energy powerhouse no matter what the price of oil, which is clearly evident given the company's share price.
Ready for Specialty Pharmaceuticals?
Remember this phrase, "specialty pharmaceuticals." This is the designation money managers give to companies that combine proprietary and generic drug development and they simply cannot get enough of them.
That's why the markets have been clamoring for Mylan now that its made a bid for Perrigo and why Actavis (ACT) has seen its share price soar since acquiring Allergan. It's also why Valiant Pharmaceuticals (VRX) has been hot because anything considered specialty pharmaceuticals is getting Wall Street very excited.
Cramer remains a fan of Horizon Pharmaceuticals (HZNP - Get Report), a stock that's up 91% over the past three months, as this quality drugmaker may be the next to get snapped up into the specialty pharmaceuticals game. He also gave the nod to Mallinckrodt (MNK - Get Report), up 23% in the past three months, and which may also be a takeover candidate.
Executive Decision: Debra Cafaro
For his "Executive Decision" segment, Cramer sat down with Debra Cafaro, chairman and CEO of Ventas (VTR - Get Report), the senior living real estate investment trust that is unlocking value by spinning off its slower-growing skilled nursing facilities and then acquiring Ardent Medical Services, a hospital owner and operator that Ventas plans to also spin off while keeping the underlying properties. Shares of Ventas currently yield just over 4%.
Cafaro said that Ventas offers not one but two companies that have growth and high yield. She said the skilled nursing spinoff will be a pure play in that space and will be well positioned to grow.
Meanwhile, the remaining Ventas will still have the scale and diversification that investors have come to expect and, with the hospital acquisition, will be even better positioned for the future.
When asked about the hospital deal, Cafaro noted that the underlying trends for hospitals remains strong, both because of the Affordable Care Act and America's aging demographic trends.
Given this company's low cost of capital to make even more deals and the fact that there simply aren't many health care REITs for money managers to choose from, Cramer said Ventas remains a winner in his book.
New on Cramer's Wall of Shame
Cramer explained that Coppola's rise to the Wall of Shame began in November, when rival Simon Property Group (SPG - Get Report) took a small stake in this then-$68 stock and indicated it may be interested in acquiring Macerich. Despite countless downgrades and a missed quarter in February, Simon did indeed make an offer in March ro purchase Macerich at $91 a share.
After turning down the more-than-generous offer, Simon made a second offer of $95.50 a share for Macerich, an offer that was once again rejected by Coppola.
Cramer said it's just crazy that Coppola turned down a 36% premium for Macerich's shareholders, especially given that Simon's offer was a 50-50 cash and stock deal that would have netted Macerish shareholders a big stake in what would've been a combined mall REIT titan. Additionally, Coppola offered shareholders no plans for getting to $95.50 a share on his own.
Thus for denying shareholders a premium valuation that would have been higher than the entire industry, and the opportunity to have a stake in a new company with incredible earnings potential, Coppola now tops Cramer's Wall of Shame.
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