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
- Money-Making Mood Stabilizers
- No Product Revenues, Plenty of Risk: Buy Exelixis?
- Lightning Round: Caterpillar, Starbucks, Intel and More
- Lightning Round OT: SanDisk, Marvel Entertainment and More
- The Discounter’s Dilemma
- Cramer: Earnings, IPOs Dominate Next Week’s Game Plan
- Cramer: GE Upgrade 'Very Powerful'
- 2 Takeover Targets in the Pharma Market
- Lightning Round: Bank of America, Crocs, Inergy and More
- Lightning Round OT: Royal Bank of Scotland, Seabridge Gold and More
MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Text Size 
Cramer praised Johnson & Johnson during Wednesday’s show for the company’s smart acquisitions of Mentor and Omrix. He’d like to see other cash-heavy firms follow J&J’s lead.
Massive selling caused by hedge and mutual fund redemptions have driven down stock prices enough to make strong companies such as these attractive buys. Breast-implant maker Mentor [MNT
Loading...
()
] and Omrix [OMRI
Loading...
()
], which produces surgical sealants, were trading as high as $50 and about $41, respectively, but J&J [JNJ
Loading...
()
] picked up each for only $31 and $25, respectively, thanks to those fund-fueled sell-offs.
There are more than just a few companies with pockets full of cash standing on the sidelines when they should be out shopping, Cramer said. So for the rest of the week he’s going to play matchmaker, coupling suitors with potential mates. First up: Pfizer [PFE
Loading...
()
] should buy Allergan [AGN
Loading...
()
].
Actually, any big pharma company with sufficient reserves could snatch up Allergan at these levels, but Cramer thinks Pfizer specifically could use a jolt in growth right now. Allergan’s a market leader in what might be called Hollywood cosmetics – not that New York, Miami or even Chicago would be exempt – having its perfectly manicured hands in everything from breast implants to Botox to stomach bands and more. And best of all AGN has been cut in half since mid January, dropping to $36 a share from $70.
Pfizer has $26 billion in its coffers, which is more than double what the company would need to buy Allergan. In return, on top of Allergan’s fabulous brands, Pfizer would inherit a 14% long-term growth yet. That easily beats the 1% growth rate Pfizer has now.
Investors looking to trade such a buy might do well if the J&J purchase of Mentor is any guide. Mentor fetched a price equal to just under 20 times earning. If Allergan earned the same, then AGN jumps to $54 a share. And even if a deal doesn’t happen, there’s potential for some heavy cost-cutting here, research firm Cowen & Co. said, which would offset any recession-related loss in sales at Allergan.
Check back Thursday for Cramer’s next two potential M&A plays.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes