Many of the market’s recent secondary offerings seem to have generated nice returns for investors, Cramer said during Thursday’s Stop Trading!. He predicted similar action from another company that is about to issue new shares.
Considering Anadarko Petroleum’s $6 jump from its secondary, and the $17 run by US Steel, Cramer thinks Vulcan Materials’ offering “may be the place to be,” especially now that shareholders have taken the stock price down. Vulcan’s proceeds will go toward debt, cleaning up the balance sheet, and government stimulus spending during the second half of the year should boost business for this basic-materials supplier.
Cramer defended his buy call on Boeing , saying he still thinks the Paris Air Show on June 15 offers a good catalyst and the potential for other good news, such as the long-delayed release of the 787 Dreamliner. BA has had a big move from $42, Cramer said, and is “resting” for now at $50.
Jones Apparel is the cheapest clothes maker in the group, Cramer said, because Wall Street mistakenly thinks the company’s balance sheet is in rough shape. In fact, JNY was able to refinance its debt at a low rate. Cramer pointed to Jones’ relationship with Wal-Mart as something that will be key to driving sales, and it is another reason to be positive on the stock.
While Cramer likes Panera Bread as a company, he wouldn’t recommend buying PNRA. The restaurant group “has no energy,” he said, and investors don’t want to be in this group right now.
“Software stocks are exploding here,” Cramer said, “and you don’t hear a word about them.”
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