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Cramer: Stealth signal green lights 2 ‘buys’

Sometimes Jim Cramer finds stock ideas in the most interesting and unexpected places.

Case in point; as the "Mad Money" host parsed through the positives and negatives of the $4.3 billion acquisition of Pinnacle Foods by Hillshire Brands, he came to realize that the takeaway actually had nothing to do with either of these two companies.

"For me, the real takeaway from the Pinnacle deal is that if Pinnacle Foods can catch a takeover bid, so can other similar companies that operate in the same vein," Cramer said.




Kelvin Murray | The Image Bank | Getty Images

That is, if Pinnacle was able to command a 20% premium for its brands, which include Birds Eye, Aunt Jemima and Duncan Hines, then Cramer thinks others could too.

Here's why:

"Pinnacle is a dominant player in categories that are right in the center of the grocery store. Therefore, the acquisition gives Hillshire immediate access to some of the most valuable real estate in the industry." In turn they can leverage that increased visibility with cross promotions or shared branding or more.

Also Cramer said the acquisition allows Hillshire to diversify, in this case out of the company's mostly meat-centric food brands, which are susceptible to spikes in commodity costs.

And, as more people choose to eat less meat, the acquisition gives Hillshire exposure to products such as vegetables, which may benefit from the rotation.

Because Cramer thinks companies that can offer similar opportunities may attract a suitor, if not increased investor interest, he's a buyer of the following two stocks.

B&G

Looking at B&G, Cramer said, with products like Cream of Wheat, Pirate's Booty and Polaner All Fruit, the portfolio appears similar enough to Pinnacle that he can see B&G catching a bid for many of the same reasons outlined above.

"I know the stock has struggled lately, but I think you're getting a good entry point in B&G here, as the company was able to put up 16% revenue growth in its most recent quarter, and the stock sports a bountiful 4.2% yield. In short, B&G Foods is paying you handsomely to wait for a potential takeover, and they have a long history of boosting that dividend," Cramer said.

WhiteWave

Turning attention to WhiteWave, Cramer thinks the company's successful line of plant-based foods, such as Silk soy-milk, could make this company an attractive takeover target for any firm that's looking to get a foothold in the rapidly growing 'organic and natural food' sector.

"I think this company would make a brilliant takeover target for any large food player that wants more healthy eating exposure," Cramer said. "And, in the meantime, WhiteWave keeps delivering terrific results," suggesting the stock should continue to rally on its own.

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All told, after examining the reasons why Hillshire Brands acquired Pinnacle Foods, Cramer says, "if Pinnacle can catch a monster bid, then so can B&G Foods and WhiteWave. To me, it makes these two little food companies all the more attractive. For those of you who want a dividend play, I'd be a buyer of B&G. And for those of you who want growth, I'd be a buyer of WhiteWave."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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