In Thursday's Stop Trading! segment, Cramer highlights why he thinks Heinz may be set for a takeover, Apple's iPad demonstrates an established technical trend and one bank that may have fallen from grace.
One thing Cramer has noticed recently is the influx of options activity in stock of Heinz. He thinks that this company may be ripe for a takeover, if not a straight-up sale, "it just doesn't have the growth that warrants this particular multiple in a group," he said. Cramer points out that the company's move upwards is due to rumors of a takeover, and the stock could be set up for a fall if the rumors are unwarranted.
Apple's big announcement of the iPad stirred up a range of both criticism and praise; the market is questioning whether the iPad is the breakthrough product that everyone was expecting. The stock is down on the day, and Cramer notes the trend that occurs after the company announces a new product: "First you get the introduction, then you get the profit-taking hedge funds, then you get the short-selling hedge funds, then you get the public panicking out of it because they now believe that the product isn't any good... then six months from now we realize that the product is great." Cramer urges people to realize that this is the way this particular stock has traditionally traded after a major product launch.
Moving on to financials, Cramer said that he was worried specifically about Banco Santander, which had previously been one of his favorite bank stocks. The reason Cramer is a bit worried lies in the uncertainty currently in the European system, and whether Greece could potentially destabilize other countries in the EU. "It's a great bank," Cramer said, "in what's getting to be a bad neighborhood."
For Cramer's full analysis of these stocks and possible trades coming from the State of the Union address, check out the video!
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Cramer's Charitable Trust owns Apple.
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