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Cramer on Thursday shared his litmus test for buying companies’ secondary offerings.

“If they need the money, be very careful,” he said during Stop Trading!. “If they don’t need the money, love it.”

Cramer pointed to KeyCorp [KEY  Loading...      ()   ] as one such company that needs money and warned investors to stay away from its secondary. He’s worried about the potential for follow-on dilution even after the offering takes place.

However, PNC Financial Services Group [PNC  Loading...      ()   ] should be bought, he said, because the company is in much better shape. PNC is not desperate for the cash in the way that KEY might be.

Bank of New York Mellon [BK  Loading...      ()   ] is the only bank that didn’t need money but is trading below its secondary offering price that Cramer likes, he said. While he could recommend Capital One Financial [COF  Loading...      ()   ], headline risk makes buying the stock iffy, especially with President Obama calling for Congress to send him new credit-card legislation.

Elsewhere in the market, restaurants are “making a comeback,” Cramer said. He endorsed McDonald’s [MCD  Loading...      ()   ] as his favorite, as well as Yum! Brands [YUM  Loading...      ()   ] and Buffalo Wild Wings [BWLD  Loading...      ()   ].

Watch the video for Cramer’s take on upcoming IPOs, retail, tech and Nordic American Tanker’s [NAT  Loading...      ()   ] “unfairly criticized” CEO.

Cramer's charitable trust owns Yum! Brands.

Call Cramer: 1-800-743-CBNC

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