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Cramer: Foreign Acquisitions of US Companies Not Over

After the London Stock Exchange on Wednesday announced it will merge with Canadian exchange TMX , German exchange Deutsche Boerse and the New York Stock Exchange confirmed in a statement that they were in talks to merge, as well. When foreign companies are buying U.S. companies at well, Cramer said the market is too low.

It seems U.S. stocks are on sale, though. Last week, Petrochina paid $5.4 billion for oil and gas Encana , a Canadian company. On Monday, London-based Ensco bought Pride International , an oil company based in Houston, Texas. Canadians and Spanish have been buying U.S. banks, Cramer said. Indians, Norwegians and French are buying U.S. oil properties. American biotech companies are being made offers by European businesses, he noted.

"All these foreign takeovers are like a bright neon sign, screaming that American stocks are too cheap," Cramer said, adding that so long as U.S. companies report disappointing quarters, they will continue to be purchased by foreign companies. "These foreign players see real companies they can snap up rather than Treasurys that could be the equivalent of wallpaper if we don't get our acts together."

Consider these foreign takeovers your safety nets, Cramer said, after blown quarters and mistaken execution. These acquisitions is another reason to believe the market is cheap, he said.

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