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"These are heady times on Wall Street, some would say giddy times," TheStreet's Jim Cramer told his Mad Money viewers on Friday. That's why his game plan follows U.S. stocks and world events.
On Monday, Cramer said, investors should keep an eye on Banca Monte Dei Paschi, Italy's oldest and third-largest bank. A bailout seems completely warranted given its size and capital restraints. At other times this would be on the front page of every newspaper, but not in this environment. Still, he said, it's worth watching.
On Tuesday, 3M (MMM) will host its analyst meeting. The company will benefit from a Trump administration and Cramer said it is a solid core holding for investors. He expects to hear good things for 2017.
On Wednesday, the Federal Reserve will meet. The expectation is that it will raise interest rates. If it doesn't, bank stocks will see a nasty selloff, Cramer warned. Investors are prepared and the economy has improved, so the Fed should hike, Cramer said. General Electric (GE) , a holding in Cramer's charitable trust, Action Alerts PLUS, will also host an analyst meeting. Cramer said investors need more positive catalysts to push the stock higher.
On Thursday, Delta Air Lines (DAL) hosts an analyst meeting. The stock hasn't rallied with its peers but it should on positive commentary, Cramer said. CVS (CVS) and Danaher (DHR) will also host an analyst meetings. CVS is oversold and looks like a buy, while Danaher will likely tell another "amazing story."
On Friday, Agco (AGCO) will hold an investor conference. Although management is unlikely to throw cold water on the story, investors are likely too late to the scene after the stock's big rally.
The market's an Energizer bunny and it's been a remarkable five weeks, Cramer said. But keep things in perspective and don't get too giddy.
Running With Marathon
A few weeks ago, activist investor Elliott Management sent a letter to Marathon's management suggesting a "full strategic review." But let's not jump to conclusions and say Elliott's suggestions should be taken without question, Cramer said.
He dug through the files and pointed to a recent energy play Elliott was involved in: Hess (HES) . This didn't work out so well, Cramer noted. There were open letters in the press from both sides, a proxy fight and plenty of disagreements. However, Hess ultimately gave in and Elliott ended up with three board seats and was seemingly steering the ship.
Hess made a series of untimely asset sales, became more of an exploration and production company at the worst time and then bought back a ton of stock at terribly high prices. The end result? Because it was suddenly lacking diversification thanks to its asset sales, the stock was pummeled more than 70% from peak to trough.
And after buying more than 62 million shares at an average price of $84 between August 2013 and the end of 2014, the company had to sell 25 million shares at $39 in a secondary offering to raise capital.
So here's the bottom line: While activists are smart investors with good ideas, not all of their ideas are reliable. Don't blindly buy into the what they're selling, Cramer said.