Stocks fell sharply on Thursday as U.S.-China trade worries persisted with more companies suspending business with Chinese telecom giant Huawei.Marketsread more
The yield on the 10-year Treasury note fell to its lowest level since 2017 as more traders grew confident in a longer U.S.-China conflict.Bondsread more
A Ministry of Commerce spokesperson does not single out any U.S. action, but it's been a tense couple of weeks for the trade war.World Politicsread more
"For them to say that they don't work with the Chinese government is false," Secretary of State Mike Pompeo tells CNBC.Politicsread more
Facebook has stopped paying commission to staff for selling political advertisements on its platform, The Wall Street Journal reported.Technologyread more
Oil prices dropped on Thursday, extending falls from the previous session amid surging U.S. crude inventories as low refinery runs and ongoing trade tensions weighed on the...Energy Commoditiesread more
U.S. manufacturer growth hit new lows in May, the latest sign that the economic slowdown accelerated amid the ongoing trade war.Economyread more
No timetable has been set on returning the money to outside investors in Tepper's Appaloosa Management, source says.Hedge Fundsread more
Wall Street is under pressure, but a handful of stocks are breaking out to new highs. McDonald's, Waste Management, Hershey, Visa and Costco have notched records this month,...Trading Nationread more
Huawei is winning over more and more Apple fans in China as the escalated trade tensions stoked "nationalist sentiment," according to South China Morning Post.Marketsread more
Celebrity chef Mario Batali is being charged with indecent assault and battery, more than a year after admitting to sexual misconduct.Restaurantsread more
Either Icahn or Cramer has gotten something terribly wrong, right?
That might seem like a logical conclusion, but, in fact, it's entirely possible that both Wall Street pros are on the same page.
is an activist investor and "activists don't invest like you and me," Cramer said.
That is, Cramer feels that individual investors are best served putting money into best of breed companies and then benefitting as the company prospers over time. " is a far cry from best in breed, " said Cramer. Therefore Cramer often tells viewers to stay away on "Mad Money."
However, billionaire activists such as Icahn aren't all that interested in best of breed. Instead, "they find challenged companies where management has been making mistakes."
And Cramer said Family Dollar has been making a lot of mistakes.
"Then by leveraging their considerable voting rights and using their considerable financial firepower, they force companies to make changes that can unlock tremendous value, " Cramer said.
That's what Cramer says is doing. And for a man as powerful as Icahn, Cramer sees a lot of ways to unlock value.
"Icahn could position Family Dollar to be taken private via a leveraged buyout," Cramer said. "Or he could advocate for Family Dollar to sell itself." Although both scenarios are squarely on the table, Cramer thinks a third scenario is most likely; a management shakeup. "Specifically, I think he could try to oust Howard Levine from his position as CEO. We know that Icahn has very little patience for CEOs who don't deliver, and many of Family Dollar's operational and execution issues can be laid right at Levine's feet."
Because Howard Levine is the founder's son, Cramer thinks Icahn will encounter strong resistance, however, Cramer also thinks Icahn has a strategic advantage.
"Icahn is not the only activist in this stock," Cramer explained "Billionaire investor Nelson Peltz has a 7.35 percent stake and top hedge fund manager John Paulson has a 5.68 percent stake, which means together, these three activists control over 22 percent of the company. With that kind of financial firepower, you can push through a lot of changes."
And that, Cramer said, is why Icahn established such a sizable position.
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"Don't be confused by Carl Icahn's Family Dollar buy. Although on 'Mad Money' I tell you to buy the stocks of good companies," Cramer said, "activist investors follow a different playbook. Carl Icahn got involved with Family Dollar because he thinks he can change the business. That something most individual investors can't do."
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