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NEW YORK (TheStreet) -- With interest rates low and good growth hard to come by, it's no wonder CEOs are looking towards mergers and acquisitions to turbocharge their stocks, Jim Cramer told Mad Money viewers Monday. By the looks of things, not only are we in the early innings of this trend, we might not've even thrown out the first pitch yet.
If there's one simple truth in the markets right now, it's that we've got too many of just about everything. In the case of retail, we've got too many stores, which is why it makes perfect sense for Asena Retail Group (ASNA) to make a bid for Ann (ANN), news that sent Ann shares up 19%. Asena can easily close underperforming locations and save over $150 million a year in the process.
We also have too many biotechs, which spurred Endo International (ENDP) to snap up the privately-held Par Pharmaceuticals in another deal that makes perfect sense. Will this deal rally other biotechs to follow suit? Probably so.
In the semiconductor sector, you guessed it, too many players. That's why the news that Intel (INTC) may be in talks to buy Altera (ALTR) sent those shares up 5.6%. After the deal that created Qorvo (QRVO), its clear that merging is the way to grow.