“Jarden totally delivered,” Cramer said during Monday's Stop Trading!, “and it’s not done going up.”
The Mad Money host was referring to Jarden's Monday announcement that fourth-quarter revenues would come in above Wall Street’s expectations. That pushed the stock higher on a less-than-stellar day for the markets. The company also said it plans to issue $400 million in bonds, an offering that Cramer predicted would be “very successful.”
Cramer has liked Jarden as a play on appliance sales. However, many hedge funds had shorted the stock because of its long history of acquisitions. Cramer said the company has cut back on the M&A spending, choosing to focus instead on growing its stable of brands. Regardless, he pointed to Chattem , Warner Chilcott and The J.M. Smucker Co. as companies that went on buying sprees of their own and “turned out to be fabulous investments.”
Associated Banc-Corp has been a loser, Cramer said, but “I want everyone in” the firm’s coming secondary offering. The stock has been “softened,” meaning brought down by selling, and that should offer more room to move once the deal is priced. Cramer also likes ASBC’s tier 1 capital position and the fact that the company took necessary charges.
“I think they get a second chance,” he said of ASBC.
Lastly, Cramer called Celgene “a classic misdirection play.” Investors panicked when the company lowered its 2010 revenue estimates and took down the share price. But a deeper look at Celgene’s announcement showed “a huge guide up” for Revlimid, Cramer said, its number one product. That should be reason enough to hold on to the stock.
“Will you read the whole thing before you take action,” Cramer said. “Because this was a monster good number.”
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