On today's STOP TRADING! segment on CNBC; it's merger-mania these days and Jim Cramer had a lot to discuss.
Hard to find a common reason for all the mergers lately, he said. In the case of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)'s recent bid for Phelps Dodge Corporation (NYSE:PD), the reason was so the smaller company had a safer, more reliable source of copper, among others.
Cramer thinks the overall market is undervalued with a 17 P-E and all the cash on the sidelines.
Cramer discussed breast implant approvals. He said Allergan, Inc. (NYSE:AGN) is a genius company doing everything right by focusing on the plastic surgery boom. It's profiting from Bausch & Lomb Inc. (NYSE:BOL) woes. Cramer thinks that AGN should have been higher anyway and this is just icing on the case. He thinks it is still too cheap and therefore a hold.
The hand-held wireless device BlackBerry is the gift for Christmas, Cramer says. And no surprise: BlackBerry makers Research in Motion Limited(NASDAQ:RIMM) is galloping up to meet the challenge. Buy it, he says.
Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.
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Reader Comments (Page 1 of 1)
11-21-2006 @ 10:33AM
Kreig Smith said...
Why would Allergan benefit from Bausch and Lomb woes? Allergan is a pharmaceutical company with a recently added platic surgery medical device division. They spun off their opthalmic device division along with their contact lens solution as Advanced Medical Optics (EYE). Cramers comments make no sense as they do not compete in the same markets anymore. He calls this research? People trade off this guys commentary ? Oh and by the way, EYE just announced a recall of their contact lens solution benefitting BOL and ACL.