Cramer made a couple of calls tonight on CNBC's MAD MONEY: one pick he's been behind, and one he is sticking his neck out on.
He added Diageo (NYSE:DEO) to his foreign legion for U.S. investors, and it's his No. 2 pick of the top five for the week. Here is what he said is the reasoning, and keep in mind he has been behind this for some time and owns it in his charitable trust.
The call where Cramer sticks his neck out is where he predicted that Gap Inc. (NYSE:GPS) will be acquired by private equity. He lays out the scenario and called a $25.00 buyout within 6-months.
Have a great night.
Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.
Cramer says drink Diageo and wear The Gap
Posted Jan 24th 2007 6:34PM by Jon Ogg
Filed under: After the bell, Gap Inc (GPS)
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Reader Comments (Page 1 of 1)
1-25-2007 @ 2:17AM
andrew said...
more detail at
gap... and private equity
http://www.stocklinkr.com/company_link_detail.php?id=378
Diageo
http://www.stocklinkr.com/company_link_detail.php?id=377
check out all cramer picks at
http://www.stocklinkr.com/cramer
1-25-2007 @ 8:40AM
Michael Schneider said...
So which is better buying Gap on a takeover speculation or Diageo which has had a good move but is a good stock? Gap is an interesting call because it is so out of favor and maybe more of a short term play. He had a pretty good call on Blockbuster, maybe Gap will repeat that.I'm not sure about buying Gap or Diageo here. Diageo is like a lot of stocks now- something that you want on a pullback,