Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.




Mad Money PhotosCHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.




ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.







Text Size
Dec.05
7:20 PM ET

Cramer offered up two more M&A deals he’d like to see now that stocks are so low. Commodities, the disappearance of China, hedge and mutual fund redemptions, the overall market mess – these have all hurt share prices across the board, making certain companies too cheap to ignore.

But not for investors. Cramer thinks cash-rich firms with an eye for growth should start buying. Market values have dropped so precipitously that there are even some two-for-one deals out there.

Take BHP Billiton [BHP  Loading...      ()   ]. The company tried to take over minerals giant Rio Tinto in 2007, but to no avail. So instead Cramer’s recommending BHP go for gold, as well as copper and molybdenum, through a purchase of Freeport-McMoRan [FCX  Loading...      ()   ]. FCX has taken such a beating that it can be had for just $16.6 billion. That’s a huge discount when you factor in that FCX bought Phelps Dodge and its copper business back in 2006 for $25.9 billion. BHP would be getting Phelps for free and then some.

Going back to Rio Tinto [RTP  Loading...      ()   ]. This company paid $38.1 billion for number-two alumina player Alcan in 2007 after a bidding war with Alcoa, the number one. Well, now Alcoa’s [AA  Loading...      ()   ] enterprise value, the cost at which the company can be acquired, has dropped to just $15.8 billion. So if Rio Tinto wants, it can get the better company for just one-sixth of the price for Alcan. The move would give Rio a virtual monopoly on aluminum. Cramer suggested moving quickly before Obama is sworn in.






Jim's charitable trust owns Freeport-McMoRan.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 12:56:54 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:38:04 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 04:32:23 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:38:10 25 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters