Mad Money

Cramer: Look who's unlocking shareholder value

No Huddle Offense: Takeover talk?
VIDEO3:3603:36
No Huddle Offense: Takeover talk?

(Click for video linked to a searchable transcript of this Mad Money segment)

The ability of this market to rally in the face of so many headwinds has astounded many investors. Not Cramer.

The Mad Money host believes there are powerful catalysts at work; and among the most bullish, he says is the string of recent mergers, acquisitions or other deals that increase shareholder value.

"I know that 2013 has been a bit of a bust for M&A," Cramer said, but that appears to be changing.

Cramer cited bid for Tokyo Electronics as an example. Although Cramer thinks there are specifics to this acquisition that may pose challenges, nonetheless the move suggests that AMAT is aggressively looking to become more valuable.

Adam Jeffery | CNBC

He also cited Greenway's decision to be taken private by a firm called Vitera. That is the company unlocked shareholder value. "Greenway had only been public for about two years, but it wasn't happy with how its stock was doing and it took action," Cramer said.

Similar developments appear to be happening all over the market.

"Money manager Tom Sandell just took a 5.1% stake in Bob Evans Farms hoping that management will unlock hidden value in the chain that comes from having a food distribution company and a restaurant chain, with 482 stores, under one red roof," Cramer noted.

Cramer also cited a decision by National Oilwell Varco to spin-off its equipment distribution business. "A spin off will unlock a substantial amount of value," Cramer added.

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All told, Cramer believes the deals outlined above are a sign that companies are actively working to unlock shareholder value.

"This relentless drumbeat of companies spinning off properties and activists pushing to unlock value is taking Wall Street by storm," Cramer insisted. The status quo just won't cut it anymore. Managements and shareholders both won't take it. They won't accept their underperformance and they are taking actions at an astonishing rate."

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