Cramer: This Food Stock Looks Delicious
Got a taste for profits? After chatting with the CEO, Cramer thinks you'll find this stock very satisfying.
"I recommended Hormel back in May and it's already given us a nice 12% gain since that time," said Cramer on Thursday's broadcast. "Yet even though the stock's now at a 52-week high, I think it could have more room to run."
Part of Cramer's enthusiasm stems from Hormel's acquisition of Skippy Peanut Butter from Unilever for $700 million.
Skippy, which dates back to the early 1930s, is the No.2 U.S. peanut butter brand after J.M. Smucker Co's (SJM.N) Jif. It had annual sales of $300 million in 2011 and Hormel expects it to contribute $370 million this year.
"Why am I so excited about this peanut butter deal? Because it makes me think back to the last big peanut butter transaction, when Smucker bought Jif from Procter & Gamble in a very similar deal back in October of 2001," said Cramer.
Over the next twelve months, Smucker rallied 26%, knocking the stuffing out of the S&P, which was up just 3% over the same period. If Hormel follows in Smucker's peanut buttery footsteps, you could make a hefty chunk of change," said Cramer.
Read More: PB & Spam? Hormel Says It's Buying Skippy
You can hear more about the deal from Jeffrey Ettinger, the chairman and CEO of Hormel Foods in the video above.
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