Jim Cramer said Wednesday that investors can sometimes find value in once poorly managed companies that have since turned things around, making its stock worth buying.
The “Mad Money” host pointed to Dole Food Company as an example. On Tuesday, Dole announced plans to sell two businesses to Itochu for $1.7 billion in cash — a deal that will help the world's largest fruit and vegetable producer pay down its heavy debt load while expanding Itochu's food presence in new markets such as China.
(Read More: Dole Sells 2 Businesses to Itochu for $1.7B)
“With this deal, Dole is telling me that it will finally do what it takes to create value for shareholders and if we’d just give it a second look, we’d see that there’s actually quite a lot of value to unlock,” Cramer said, adding that he now thinks Dole is a “buy, buy, buy!”
After all, Cramer likes that Dole is paying down its debt load. From its fruits and vegetable divisions to the thousands and thousands of acres of its unused land, Cramer thinks its many assets are worth a lot.
“Dole’s assets are worth a heck of a lot more than the market seems to be giving them credit for and with the company now taking action to bring out value, I believe that now is the time to buy,” Cramer said. “This is not about being bullish on bananas; it’s about recognizing a clearly undervalued company that’s getting its house in order.”
Read on for What Cramer's Watching This Week
—Reuters contributed to this report
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