Lowe’s, Home Depot , Black & Decker and Fortune Brands would all benefit if a deal is reached.
Elsewhere in the market, there seems to be a reversal of a time-tested stock thesis, one that said Avon does well during a downturn but Colgate-Palmolive does not. The common wisdom is that consumers trade down from CL products to save money, while Avon’s staff increases as people search for second jobs to supplement their incomes. That may have been true in the past, but right now CL is the stock that’s up and not Avon. In fact, Cramer said, even with a 4% yield, he wouldn’t recommend AVP right now.
Lastly, in infrastructure, a sector that’s been “just decimated by hedge funds,” Cramer said, he hasn’t seen any project cancellations or reduced orders. So such a severe decline in these stocks is probably unwarranted. Joy Global, Foster Wheeler and AECOM Technology are all still good companies.
Watch Mad Money Thursday night for Cramer’s interview with Agnico-Eagle Mines CEO Sean Boyd.
“Everybody hates gold,” Cramer said. “Maybe it’s time.”
Jim's charitable trust owns Foster Wheeler.
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