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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Oct.09
11:36 AM ET
Tuesday, 9 Oct 2007
Microsoft’s Next Purchase?

Back in April, on the heels of Google’s buyout of DoubleClick, Cramer predicted that either ValueClick or aQuantive would be the next acquisition for a tech company trying to keep pace with the search giant.

Sure enough, less than two months later, Microsoft [MSFT  Loading...      ()   ] swept in and grabbed aQuantive at an 85% premium. But Cramer said he doesn’t think Microsoft is done yet, and the industry bellwether might have its eye on the orphan ValueClick [VCLK  Loading...      ()   ].

“Microsoft is hungry, and ValueClick could be its next, very pricey meal,” Cramer said.

Apparently, before the Microsoft-aQuantive deal, aQuantive was in merger talks with ValueClick. Now that former aQuantive CEO Brian McAndrews is a key player in Microsoft’s online ad business, there’s a chance he’ll want to take another look at ValueClick, Cramer said.

So what does that mean for investors? According to Cramer, it could be an 86% premium. Using the aQuantive and DoubleClick deals as a model, Cramer figures ValueClick could fetch just under $60 a share on the high end and $34 a share on the low end. With the stock at about $25, that’s a premium of 137% or 35%, respectively. The average between the two is $47, or 86%.

Even if the buyout never happens – and that is a possibility – ValueClick is still in the sweet spot of a thriving industry: internet advertising. So, “you still own a good stock,” Cramer said.

The bottom line? Cramer gives this stock a "triple buy."


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