Monday, July 28, 2014

Jim Cramer's 'Mad Money' Recap: Monday Merger Mania

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- If even the worst companies in a sector can make you money, why not stay along for the ride? That was the question Jim Cramer asked his Mad Money viewers Monday as he opined on the two mergers of the day, Dollar Tree buying Family Dollar and Zillow buying rival Trulia . Cramer said in the old days when you spotted the weakest player in an industry, you shorted them and then just waited for the better players to put them out of business. But in today's market when you spot a down-and-out company, you buy the stock because before long someone will swoop in and buy the company. Dollar Tree's decision to buy Family Dollar makes perfect sense, Cramer continued -- with only two major players left in the market, Dollar Tree can simply divide up the country and stop competing for market share. The synergies will be huge, he said. Meanwhile, Zillow once again won over its critics by taking out Trulia, its only real competitor. Cramer said Zillow remains expensive on an earnings basis but admitted the company has a very interesting story. So where is the next takeover target? Cramer theorized that shoe retailer DSW remains an attractive private equity target, while a stock like Darden Restaurants is ripe for change after its CEO stepped down, sending shares up a quick 5%. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC


Click to view a price quote on DLTR. Click to research the Retail industry.





from Latest TSC Headlines http://ift.tt/1ArrPDt

No comments:

Post a Comment