FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- 4 Enemies of Bull Markets
- Experiencing Technical Difficulty?
- The Importance of Good Breadth
- How Big Money Rules the Markets
- Follow the Leader
- Mad Mail: Chesapeake Energy Is Hiring?
- Lightning Round: Royal Dutch Shell, Bank of America, RF Micro Devices and More
- Lightning Round OT: Harley-Davidson, Heartland Payment and More
- Cramer’s Christmas List
- Cramer: This Stock Offers ‘Plenty of Upside’
Text Size 
Cramer’s made a couple of great calls recently. Back on April 9, he said aQuantive [AQNT
Loading...
()
] would get a takeover bid, and then came Microsoft [MSFT
Loading...
()
] with a $6 billion offer. He nailed Alltel [AT
Loading...
()
], too, which today accepted a $25 billion tender from TPG Capital and Goldman Sachs’ [GS
Loading...
()
] buyout division. So who’s next?
Cramer’s betting on Total Systems Services [TSS Loading... ()
], yet another processor of credit, debit, commercial and private-label cards he thinks will be gobbled up in a matter of time. In fact, he says the only reason it’s still independent is because TSS is majority-owned by Synovus Financial, a Georgia bank. You wouldn’t usually see Cramer recommending a subsidiary and its parent, but he thinks that private equity could do for TSS what Blackstone did for Alliance Data Systems [ADS
Loading...
()
]. This $32 stock could shoot to $40 if it got an offer.
Synovus has had numerous opportunities to spin off TSS, but this time investors like hedge fund Third Point are agitating for change. Cramer says that could be a deciding factor now.
In accordance with Cramer canon, the fundamentals are good at TSS as well. Home Gamers know Cramer never speculates on takeovers unless the business is sound, and this company is sitting on $422 million in cash, it carries no debt and it’s registering consistent 3% growth. Not to mention, a little bit of margin expansion could make this company grow earnings by as much as 18% next year, Cramer says. A year from now, investors could see a $40 share price, bid or no bid, he thinks.
Takeovers are in the air these days, and with Third Point shaking things up, Cramer feels he has to recommend TSS, which is also cheap on earnings.
Bottom Line: Total Systems Services could be a buy up to $34, Cramer says, but no more than that. You could be rewarded.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes